What is Trade-to-Mine
The trade-to-mine method essentially means exchange mining. Blockchains and trading platforms are constantly improving, developing new consensus protocols, ways to create blocks, trying to avoid network congestion while increasing bandwidth, and creating new encryption systems to improve security. Some even go to desperate measures and reduce their commissions to the lowest possible. But to attract users in the most unexpected way decided a small exchange ABCC, issued its own currency AT, which is available only on its platform. This method was called Trade-to-mine.
Nothing difficult to understand about this method - the creation of each new block brings the exchange of a certain amount of coins, which are used as a reward for the most active users. That is, the more transactions you make on the platform - the more internal currency you get, and the more commissions are leveled at the expense of this profit. And the company itself profits from token distribution.
The token will be issued in excess of 200 million units, of which 50% will go to the team and shareholders, 40% will be in the accounts of miners, and the remaining 10% has already become a kind of gratitude to those users who supported the platform even before the release of the currency.
Pros and cons Trade-of-mine
The main advantage of the network's policy is the bonuses that the platform pays to token holders. These bonuses largely or completely cover transaction fees - the company spends 80% of all its commission income on this.
In the first six months, the token showed steady growth and miners were happy to increase their assets in this currency, receiving financial rewards for it. Most of the growth was due to interest in the new concept, but it did not last long. At the moment the return on investment in ABCC Token is -86.44%, although the total supply has just exceeded 60 million coins.
Even the referral program does not save the situation. That is, you get bonuses from the trading volume of each user you attracted, as well as those whom he brought to the exchange, and so on. This system is quite profitable for the very first exchange users, but no longer interesting for new members.
Another problem was the fact that commissions are paid in BTC and ETH, while bonuses are paid in domestic currency, which is quoted only on this exchange. This scheme looks more like an unprofitable deal when a little-known and unpopular token is bought for a widely sought-after and expensive currency.
In addition, there is a reasonable question - if all the income of the exchange goes to pay bonuses, what prospects for its development can it have? That is, users, spend the best currencies, which show high ratings, and in return, they get a coin, the value of which depends entirely on the further actions of the exchange. Judging by the drop in profitability, this has become a problem for so many.
Wrapping up the review
At this point, it is obvious that Trade-to-mine has only made a profit for its first miners, and that is on the condition that they managed to sell the currency when it doubled in the beginning. It is too early to say how viable this concept is in the long term, as it has only been around for a year. Many technologies in the blockchain world have been given a second chance at life by being refined over time. Perhaps that's what's in store for exchange-based mining as well.