Binance, a leading crypto exchange has unveiled plans to launch a token airdrop. The exchange published this news on its website on September 5. Per the publication, this airdrop is part of its recent acquisition of JEX, a crypto trading platform.
According to the official announcement, Binance renamed JEX to Binance JEX. The newly-acquired firm would reportedly function as an independent team within the Binance ecosystem. Following this purchase, Binance will convert all ERC-20 JEX tokens into native Binance Chain-based (BNB) ones.
Distributing 200 million Tokens
After the conversion, Binance unveiled that it would distribute all 200 million unlocked JEX tokens to all BNB holders.
In the announcement, Binance said,
Starting from 2019/10/06, Binance JEX will conduct a monthly airdrop of JEX tokens to BNB holders equivalent to 30% of the profit generated by Binance JEX in each respective month. The distribution of this airdrop will be calculated by recording the lowest BNB balance in all user accounts each day from 0:00 AM (UTC) on the 6th day of the month to 0:00 AM (UTC) on the 6th day of the next month and calculating a total BNB holding ratio for each user at the end of each month (detailed formula below). Users will also need to hold at least 10 BNB at all times each day to be eligible for this airdrop. This monthly airdrop will initially run for one full year and may be adjusted in the second year based on future conditions.
Binance explained that it would use each users’ BNB holdings to award the JEX tokens. In this case, a user’s “BNB holdings” means the BNB in their spot trading accounts, sub-accounts, and Binance Lending accounts. As such Binance will not consider tokens in Margin accounts when distributing the tokens.
The exchange also said that it would not include BNB balances that are below 10 in the daily BNB holding calculations. While Binance will calculate Binance holdings daily, it would distribute the JEX tokens monthly. The firm added that it would complete the distributions within two weeks of each holding period.
This news comes after Binance unveiled that it will be launching a futures trading platform in September. Reportedly, this platform would support BTC/USDT contracts at the start. It would allegedly underpin these contracts at a leverage of up to 20 times. However, the firm did not disclose the exact date that this platform would go live.
Do you think Binance decision to airdrop JEX tokens will have a positive impact on BNB’s price? Let us know in the comments below.