FTT, as the sole token of FTX, is designed to support the entire FTX ecosystem. Weve engineered incentive mechanisms to strengthen marketing efforts, create network effects, increase market demand for FTT, and reduce its circulating supply.

The use cases for FTT include:
1) Token Buyback and Profit Sharing: Before the total amount of FTT is reduced to half of its initial issuance through buybacks, one-third of all trading fees generated on the FTX platform will be used to repurchase and burn FTT. A portion of the rebates from FTX OTC trades will also be utilized for this purpose.
2) Margin Collateral: Users can leverage FTT as margin collateral for their positions, which helps enhance the utility and market demand for FTT.
3) Trading Fee Discounts: Holders of FTT with a certain balance will enjoy discounts on trading fees for contracts.
4) OTC Trade Rebates: Holders of a specific quantity of FTT will receive rebates on OTC trades (FTX does not charge fees for OTC trades).
5) OTC Trade Buyback: FTX will conduct FTT buybacks and burns based on the volume and revenue of OTC trades.
6) Token Holder Dividends: Our backtesting and simulations show that during significant market movements, our risk reserve grows without any sharing. A portion of the net income from the risk reserve will be distributed among FTT holders.
7) Future Prospects: As the only circulating token in the FTX ecosystem, FTT serves as the backbone of the FTX infrastructure. The use cases for FTT will expand further, and we plan to introduce more cryptocurrency derivatives tools on our platform.

FTT Staking

Staking FTT entitles you to the following benefits:
Increased Referral Commission Rate: Staking FTT increases the commission rate for referrers.
Maker Fee Rewards: FTT stakers will earn rewards on maker fees (in addition to maintaining the existing FTT fee discount).
Additional Voting Power: Staking FTT grants additional voting power, determined by the number of FTT tokens held and the 30-day trading volume.
Extra Airdrop Rewards: Staked FTT will qualify for more SRM airdrops (and potentially other future airdrops).
Waived Blockchain Fees: Holders can enjoy free ERC20 and ETH withdrawals daily.

Buyback and Burn

We will buy back and burn tokens equal to:
33% of FTXs market fees
10% of the net increase in the insurance fund ("socialized gains")
5% of fees earned from other uses of the FTX platform
FTX will purchase FTT on its FTT/USD market. The purchased FTT will be burned weekly according to FTX’s schedule. Currently, the process typically starts at 10 PM Hong Kong Time every Monday, and the tokens are burned by 11:59 PM Hong Kong Time on Tuesday. These fees are net of promotional discounts, payment processing fees, referral fees, and third-party fees associated with such revenues.