ViteX Mining Guide
By: Khun Sir
Tags: Cryptocurrency, Exchange, Vitex, Resources, Mining

Background

ViteX, developed by Vite Labs, is the world’s first DAG-based decentralized exchange. ViteX Coin, VX, is the coin native to the ViteX platform. It is mined exclusively by the ViteX community and is used to allocate rewards back to the community.

VX holders can receive daily dividends from a shared dividend pool which aggregates all trading & listing fees accumulated by ViteX and redistributes back to VX holders.

Overview: 5 Mining Methods

I. Trading as Mining

Trade in BTC, ETH, VITE and USDT markets and receive VX rewards.

II. Market-Making as Mining

Help improve order book depth by placing buy and sell orders and receive VX rewards.

III. Staking as Mining

Stake VITE to help ViteX obtain higher level operational quota and receive VX rewards.

IV. Referring as Mining

Generate a referral code to invite friends to join the ViteX platform and receive VX rewards.

Inviter will be rewarded with 5% of all invitees’ trading as mining proceeds and 2.5% of their market making as mining proceeds.

Invitees will enjoy 10% off platform trading fees, and receive an extra 2.5% of trading rewards and extra 1.25% of market-making rewards.

V. Listing as Mining (Operators Only)

Become a ViteX operator and list trading pairs to collect user transactions fees and receive VX rewards.

Mining Details

I. Trading as Mining

Mines approximately 60% of daily released VX. Currently, users are able to trade in four markets: BTC, ETH, VITE and USDT and receive VX rewards accordingly.

Allocation: As mentioned above, ViteX is currently divided into four different markets: BTC, ETH, VITE and USDT. By trading in these markets, users are able to receive VX mining rewards. Each market will receive 15% of daily distributed VX.

How to participate: By executing trades on eligible trading pairs and paying the corresponding trading fees, users mine VX (Trading as Mining).

Mining reward calculation: VX rewards are calculated based on the proportion of a user’s daily accumulated trading fee to the total accumulated fees in each market. For example, for a given day, if a trader accumulates 5% of the total BTC market trading fees, then that trader will receive 5% of the 15% of VX rewards allocated to the BTC market.

II. Market-Making as Mining

Mines 10% of daily released VX; BTC market at 5%, ETH and VITE market equally at 1.5%, USDT market at 2%.

Placing orders on ViteX will also earn users VX rewards. The amount of VX earned depends on three factors: 1) the amount of order, 2) the amount of time your order remains on the order book, and 3) the amount of deviation from the best bid and best offer in the order book spread.

Allocation: 10% of daily released VX; BTC market at 5%, ETH and VITE market equally at 1.5%, USDT market at 2%.

How to participate:

Only eligible trading pairs will be considered for market-making as mining rewards

Both buy and sell orders are considered for market-making as mining rewards

Orders must not deviate from the designated mining range in the order book

Mining reward calculation:

The VX mining reward for market-making has a linear relationship with the order amount and order duration (i.e. amount of time the pending order stays on the order book). However, the mining reward has an exponential relationship with the order distance (i.e. the deviation from the best bid offer).

For example, if Alice and Bob both place two separate orders for the same amount of token X. Both orders remain on the order book for the same amount of time. However, Alice prices her order on level 1 (i.e., extremely close to the best bid offer) and Bob prices his order on level 10 (i.e. further away from the best bid offer), the mining reward for Alice will be 100 times that of Bob’s. This system is designed to incentive users to place orders as close to the best bid offer as possible.

III. Staking as Mining

By staking VITE to help ViteX obtain operational quota, users receive VX rewards.

Allocation: 20% of daily released VX

How to participate: stake VITE with the beneficiary set to the ViteX smart contract

Staking amount: the minimum amount of VITE that users can stake is 134 VITE. There is no maximum cap.

Staking duration: Stakes can be retrieved after 3 days. There is no maximum number of days for staking VITE. There will be a retrieving period of 7 days, and stakes will not be counted towards staking as mining rewards during this period.

Mining reward calculation : the amount of VX rewards will be calculated based on the proportion of VITE staked by a user’s account to the total amount of VITE staked that day.

IV. Referring as Mining

User can request invitation codes to invite friends to join the ViteX platform.

Inviter will be rewarded with 5% of all invitees’ trading as mining proceeds and 2.5% of their market making as mining proceeds.

Invitees will enjoy 10% off platform trading fees, and receive an extra 2.5% of trading rewards and extra 1.25% of market-making rewards.

How to participate: Spend 1,000 VITE to generate a referral code, of which 100% will be burned

Note: If you are a ViteX VIP (users who have staked 10,000 VITE to obtain a 50% reduction in trading fees) AND joined ViteX via a referral code, your 10% discount will be applied after the reduction.

V. Listing as Mining (Operators Only)

For each trading pair listed, the issuer’s VX reward is then calculated as if he/she executed a trade involving a transaction fee of 1,000 VITE.

Operators can list trading pairs, customize transaction fees, and generate profits from users that choose to trade on their Zone.

VX Distribution Schedule

The total supply of VX will be 29,328,807.8 with no inflation. The total supply of VX will be fully distributed in two phases.

Phase 1 : Buffer phase that has ended on December 6, 2019. A fixed amount of 10,000 VX was released daily.

: Buffer phase that has ended on December 6, 2019. A fixed amount of 10,000 VX was released daily. Phase 2 : Standard Phase. In this phase, all un-mined VX will be released according to below schedule:

: Standard Phase. In this phase, all un-mined VX will be released according to below schedule: Sub-phase 1: Starting at 10,000 from December 7, 2019, daily release will increase for 90 days at a fixed rate until reaching 50,000 on March 6, 2020

Sub-phase 2: Starting from March 7, 2020, annual release will decrease by half each year until fully distributed after 8 years.

VX Mining Allocation

Allocation of VX daily release by proportion:

Trading, Referring and Listing: 60%

BTC market: 15%

ETH market: 15%

VITE market: 15%

USDT market: 15%

Staking: 20%

Market-making: 10%

Vite team: 10%

VX Holder Dividends

All fees collected by the ViteX platform will be collected into a shared dividend pool and distributed at a rate of 1% daily. For any given day, the total fees collected during that day will be fully distributed by the 100th day.

To receive your dividends:

• A minimum of 10 VX must be staked in the exchange account. Please note that VX held in a wallet or exchange account will not make you eligible for dividends;

• Participant is entitled to receive dividends starting with the next distribution immediately after submission of staking request;

• Staked VX will be released after the 7-day waiting period once retrieved. No dividend will be received during this waiting period.

Users can enable automatic staking. Mined VX will be automatically staked once enabled, purchased VX is not subject to this function.

Transaction Fees

Transaction Fee Formula

For all transactions on ViteX, incomplete orders do not incur any fees.

Total Transaction Fee = Base Trading Fee + Operator Zone Fee

Unlike other DEXes, ViteX does not charge fees for pending orders and withdrawals provided that users have the requisite amount of quota. Related documentation: What is quota.

Base Trading Fee: 0.2%

This trading fee will be applied to all trading pairs in the ViteX ecosystem. All the fees collected from this will be put into the shared dividend pool to be redistributed back to VX holders.

Operator Zone Fee: 0–0.2%

This is the fee that will be set by ViteX Operators for their respective Zones. Operators may set fees ranging from 0% to 0.2%. Proceeds from this fee belong to the Operators.

Reducing Trading Fees

Stake 10,000 VITE to become a VIP and receive 50% off basic trading fees

(Minimum Staking Duration: 30 days )

(Minimum Staking Duration: ) Use a Referral Code and receive 10% off trading fees

(Refer to Referring as Mining section for details)

Note: For any VIP user using a referral code, another 10% will be taken off incurred trading fees after the 50% reduction.