How does the Nectar reward system work?
- 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.
If a market maker wishes, rather than redeem the tokens instantly they can choose to either hold their tokens long term or to sell them on a secondary market.
Can I buy/sell Nectar tokens?
Nectar tokens are available for trading on an open market, in a similar manner to all other ERC20 tokens trading on Ethfinex. Nectar (NEC) tokens were made available for trading on February 14th 2018, paired against USD, ETH & BTC.
For more information on how to buy and sell Nectar, please refer to our trading guide.
Can anyone earn Nectar tokens?
Any verified user who has registered for the Nectar loyalty programme can earn Nectar tokens for acting as a market maker on Ethfinex. Users registering must meet certain conditions before they are accepted, including verifying that they are not US citizens as defined by our terms and conditions. Please refer to this guide to get set up.
Is the Nectar token an ERC20 token?
The Nectar token is an Ethereum ERC20 token (see here). This means that it will be possible to view the tokens and transfer them to and from any Ethereum based wallet or application which has support for ERC20.
What is the total & circulating supply of Nectar?
Out of an initial 1 billion tokens, 500,000,000 (50%) are locked up in a 3 of 6 multi-signature wallet and held here.
60% of this 500,000,000 (30% of the initial 1 billion tokens) is reserved for Ethfinex to be used if needed for operational activities or further incentives. The remaining 40% (20% of the initial 1 billion tokens) is reserved to be potentially used to attract and onboard future development partners who will help us to improve and act upon our vision.
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 investor (locked up).
190,450,193 - Tradeable supply from early investors and team.
15,568,067.98 - New issuances from the Loyalty program.
The current circulating supply of Nectar is therefore 206,018,260.98 NEC (190,450,193 +15,568,067.98)
This circulating supply will grow every 30 days, with new tokens being created based on the maker trading volume which occurred during that period.
How much volume is required to earn Nectar tokens?
Nectar tokens are earned in proportion to your volume of orders which were executed with you as the maker. Nectar is earned on all trading conducted as a market maker throughout each 30 day period, and there is no minimum volume required to earn NEC.
How can I register for the Nectar Market Maker Program?
To register for Nectar, visit your account settings and look for Loyalty Program; alternatively, go straight to www.ethfinex.com/nectar. Once here, click Register to start the Nectar registration process. Please note registration can take up to 30 minutes to complete.
Will there be an ICO for the token?
There will not be an ICO for the Nectar token - it is strictly collected through trading on Ethfinex.
Can I earn the token through decentralised trading, or without an Ethfinex account?
Yes. The Nectar token will be collected in a similar manner for users trading on Ethfinex using the decentralised trading portal.
Will the Nectar token be used for trading fees?
No. The Nectar token will not be used to pay trading fees and is designed purely to reward loyal users on Ethfinex.
Can US individuals earn Nectar tokens?
US individuals are unfortunately not able to earn or trade Nectar (NEC).