What is ABB and Dynamic Reimburse?
Exchanges are a critical element of the cryptocurrency ecosystem. Cryptocurrency exchanges are typically highly centralized, opaque platforms that suffer from a number of problems that include ambiguous trading data, falsified volume, poor customer support, and significant security issues.
ANBI is a digital currency exchange that adopts a new approach to digital asset trading, focusing on community participation and equitable governance in order to establish a shared global digital asset trading platform. To achieve this, ANBI leverages a decentralized governance structure that incorporates a unique digital asset — the ABB token.
What is ABB?
The ANBI ABB token is designed to allow all token holders to participate in a broad spectrum of platform functions such as the listing of new tokens, the election of team members, community dividend decisions, and business decisions.
ANBI distributes a large portion of its income to ecosystem participants that hold ABB tokens. ABB token issuance is set at a constant amount of $10 billion, with each individual token functioning as a ecological equity certificate of the ANBI trading platform.
51 percent of all issued ABB tokens are allocated toward community through the ANBI token economy, allowing token holders to interact the governance of the ANBI platform. In addition to functioning as a critical element of the ANBI token ecosystem, the ABB token is also integral to several other features that are unique to the ANBI trading platform; income distribution, community committee elections, and platform risk reserves.
What is the ANBI Mining Model?
The core of the ABB tokenomic model is trans-fee mining. Conventional cryptocurrency exchanges typically use a static trading fee model in which every trade incurs a specific percentage fee, or a “maker/taker” trading fee model that offers varying trading fees depending on whether a trader is adding or taking liquidity from the order book.
The ANBI trans-fee mining model, however, takes a completely different approach. Rather than keep all of the capital generated by transaction fees, ANBI uses mining fees to distribute ABB tokens to traders. Put simply, the ABB token allows traders that use the ANBI platform to profit from trading on it.
How Does ANBI Mining Model Work?
The amount of ABB tokens distributed to ANBI platform users relies on a dynamic mining difficulty adjustment mechanism. In the case of trans-fee mining, difficulty is defined as the limit on the amount of ABB tokens that can be “mined” for distribution to platform users within a specific time period.
ANBI determines the specific mining difficulty based on platform strategy and transaction data. During the launch period of the ANBI trading platform, mining difficulty is designated at 105%, on a daily cycle. In simple terms, this means that the total volume of capital generated by ANBI trading fees on ANBI for a single day is calculated, then 105% of this amount is distributed the following day.
It’s important to note that ANBI limits the total amount of ABB that can be mined in a single day by a single user at $1 million USD in equivalent value. Transaction fee capital that exceeds this volume is not redistributed as ABB.
ANBI also incorporates an inviting-mining mechanism that allows users to capitalize on expanding the ANBI trading platform user base. ANBI users that invite new users to the platform are able to obtain a specific percentage of the new user’s trading fees in the form of ABB tokens. Users are also able to generate additional ABB through holding mining.
Using ABB, ANBI distributes the value generated by trading fees to ANBI platform users. The ABB token is also used to participate in the governance decision-making process via smart contracts. Of the total 5.1 billion ABB tokens, 51% is reserved for the ABB community ecosystem.
ANBI also incorporates a platform dividends feature. ANBI takes hourly snapshots of the ABB token holdings of each user in order to distribute a percentage of the previous day’s dividends based on the total. In simple terms, the more ABB a user holds, and the longer they hold it, the more dividends they will receive.
What is the ANBI Platform Income Distribution Mechanism?
The buyback mechanism is part of a larger initiative designed to secure the long-term stability of the ANBI ecosystem — the ANBI platform income distribution mechanism. 100 percent of the revenue generated by ANBI is used in this mechanism.
10 percent of ANBI revenue is reserved for the operational costs of the ANBI platform. This 10 percent supports daily operational costs such as human resources, hardware and software costs, and office costs.
ANBI reserves 10% of the total ABB cap as a risk reserve. This reserve protects the ANBI platform and users from bad actors — if the value of the ABB token were to plummet due to malicious short selling, for example, the risk reserve would be used to repurchase ABB tokens on the secondary market in order to stabilize the token value. 5.1 billion ABB.
The most interesting element of the ANBI Platform Income Distribution Mechanism, however, is the ANBI buyback mechanism. A total of 20 percent of all ANBI revenues are reserved for operational costs and the risk reserve, but the remaining 80 percent is reserved for the buyback system and the aforementioned dividend feature. The ratio at which this 80 percent is split between the dividend mechanism and the buyback mechanism is adjusted on a dynamic basis that relies on ABB token price, transaction volume, and other operational variables.
What is the ANBI Buyback Mechanism?
ANBI operates a buyback mechanism as part of a token burning feature that increases the value of ABB tokens. The Buyback mechanism allows for the secondary market purchase of ABB tokens at either a market price or a limit price.
The ABB tokens that are purchased are then permanently destroyed or burned. Importantly, ANBI maintains a commitment to transparency by publishing the number of tokens destroyed through the buyback mechanism on a daily basis.
Ultimately, the ABB token ecosystem allows ANBI users to not only participate in the governance of the ANBI trading platform but also allows users to benefit from a long-term return on investment simply by using the platform to trade.