Credits
Last updated
Last updated
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.
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)
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.