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  • HGT Incentive Mechanism for BGT Trading
  • Points Calculation Rules
  • Example Calculation

Credits

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Last updated 1 month ago

HGT Incentive Mechanism for BGT Trading

To incentivize BGT trading in the market, a credits-based mechanism has been introduced. Both buyers and sellers in the trading market will earn HGT credits. Once the HGT token is launched, an airdrop will be distributed to users holding credits.

Points Calculation Rules

For each completed trade, both counterparties will receive HGT incentives based on the proportional liquidity of the opposite order, using a quadratic weight formula:

  • Buyer Incentives (Paying HONEY to buy BGT)

  • Seller Incentives (Selling BGT to receive HONEY)

Example Calculation

Assume the current order book has:

  • 30 BGT sell orders

  • 70 BGT buy orders

  • Sell order ratio = 30% (0.3)

  • Buy order ratio = 70% (0.7)

For each 1 BGT traded:

  • The buyer (placing a buy order or taking a sell order) will receive 0.3² = 0.09 HGT.

  • The seller (placing a sell order or taking a buy order) will receive 0.7² = 0.49 HGT.

This mechanism incentivizes liquidity balance, rewarding participants based on market depth and their impact on liquidity distribution.