Ethfinex’s Nectar Token Is Here And Its Here To Stay!

Ethfinex's Nectar Token

After Bitfinex, the famous Bitcoin exchange has now launched Ethfinex. As it looks like from its name, no prizes for guessing, ‘Ethfinex’ is an exchange specifically dedicated to trading Ethereum-based tokens also known as the ERC20 tokens. Read more about ERC20 here.

Isn’t it interesting? Well, when I found out that a big player of the Bitcoin trading market was coming with an exchange, especially for ERC20 tokens, I was quite pumped!

However, it is not just this, they also have other exciting stuff embedded in there that we will discuss further in this article.

What Is Ethfinex?

In words of Bitfinex, Ethfinex is a digital asset exchange linked to Bitfinex and built with the Ethereum community in mind. Ethfinex is designed to facilitate learning, discussion, and analysis of ERC20 tokens whilst offering access to a highly liquid and advanced trading platform.”

Here is a short intro video of Ethfinex:

As you heard in the video, Ethfinex’s long-term goal is to go decentralized with Nectar Token (aka NEC) as its central point as it allows you to earn a fair stake in Ethfinex as well as participate in its long-term success.

What Is A Nectar Token?

 

Nectar Token (NEC) is an ERC20 token hosted on Ethereum blockchain but unlike many ICOs or token sales, NEC will not be sold in a crowdfunding.

And NEC will be part of the reward, incentivization, governance, and voting in the future version of Ethfinex which will be a decentralized exchange.

Why Nectar?

The Nectar token is not intended to raise funds for Ethfinex and will not be sold directly. Instead, the token is designed to maintain liquidity and market efficiency through the incentivization of platform loyalty. Market makers on the Ethfinex platform will automatically generate NECs and earn a stake in the future development, governance, and success of Ethfinex. (Source)

How To Earn/Get The Nectar Token?

Customers of Ethfinex who will trade day in and day out on Ethfinex will be rewarded with NEC in proportion to their trading volume every month. The good news is that there is no minimum trade volume cap to earn Nectar tokens, a factor that is expected to help in distributing NEC far and wide as per their goal of future decentralization.

This is like earning loyalty points for being loyal and using the platform earlier than others.

As there is no other token sale or ICO, this is the only way to get your NEC tokens as of now.

Trade On Ethfinex Now To Get NEC

Ethfinex Nectar Market Maker & Reward Program

Ethfinex-Maker-Program

The sole purpose of Nectar token (NEC) is to provide liquidity on Ethfinex exchange and NEC will be given as loyalty points to the users of the platform for making the market.

  • Market makers trade throughout the month.
  • 50% of total trading fees paid by the makers and takers are pledged to the token smart contract every 30 days.
  • NECs are issued at the end of each month and distributed to market makers in proportion to the total trading volume they conducted throughout that month.
  • A redeem mechanism will allow holders of the NEC token to claim a reward at any time, using up their tokens to do so. This reward is equivalent to 50% of the trading fees collected throughout each period.
  • A user who holds 5% of tokens issued would be entitled to claim up to 5% of the reward held in the contract. (Source)
Total & Circulating Supply Of Nectar

The total initial supply of NEC is 1 billion tokens out which the current circulating supply is 500,000,000 NEC. This supply will be distributed to the team and early adopters as loyalty points and this will also keep growing every 30 days, with new tokens being created based on market maker programme.

The remaining 500,000,000 (50% of the initial supply) will be distributed to the team and early investors (up to 400 early investors):

  • 309,549,807 – Bitfinex as an investor (locked up).
  • 190,450,193 – Tradeable supply from early investors and team.
  • 9,859,737.01 – New issuances from the Loyalty program.

Buy Nectar Token

Nectar Token Wallets

NEC is an ERC20 token so you have plenty of options for storing your NEC tokens safely. Some of these options have been listed below and will help you keep your NEC safe.

Conclusion

Ethfinex has come out with a smart solution and is not organizing a direct ICO but I see it as an indirect one with a long-term range into the future where decentralized exchanges will be the future or crypto-economy.

Ethfinex’s and Nectar’s token development will bring all the ERC20 tokens under one platform dedicated to Ethereum token economy which in itself will be a huge thing.

Additionally, I see the worth of NEC increasing in the long term because it has privileges.

Update: These features and opportunities are now live on Ethfinex. Plus now you get a new token called EVT-Ethfinex Voting Tokens if you are holding NEC tokens.

For example, if you hold 10,000 NEC on the date of the vote beginning, you also receive 10,000 Ethfinex Voting Tokens (EVT).

EVTs are spent when voting for one of the tokens on the list. All remaining EVT not used in voting expire at the end of the two week period and the EVT markets on Ethfinex are then cleared. Users will be required to vote or sell the EVT before expiration to avoid any loss. Tokens withdrawn to external wallets will also expire and balances will disappear at the end of the vote. This is automatic and will expire across all Wallets. EVTs are then reissued based on user’s updated NEC balances to be used in the next token listing vote and the EVT market begins again. (Source)

Also, now they have launched their decentralized version of the exchange, called Ethfinex Trustless and let me tell you it looks great:

You can log in to Ethfinex using your Bitfinex credentials and register on www.ethfinex.com/nectar. Also, note that to participate in the Nectar market maker program, you need to do a complete KYC verification beforehand and it can typically take days before you are approved. Therefore, plan accordingly if you wish to get NEC tokens early.

Note: US individuals are not allowed to earn or trade Nectar token (NEC).

It is time to hear from you: Are you getting involved with Ethfinex to get NEC tokens? Do you think Ethfinex’s decentralized exchange will also be a leader like Bitfinex? Let me know your thoughts in the comments below.

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