By holding an exchange coin, traders can take advantage of reduced fees, personalized consultations and improved customer service.
Many token holders are motivated by the benefits of governance alone. However, in some cases, there are several monetary incentives that further encourage this level of investment.
Sometimes, traders will gain access to reduced fees, anywhere from between 1% and 50% or more. The fee reduction is especially beneficial when volume is a factor, and many trades are conducted regularly.
Some exchange tokens provide other benefits such as personalized investment consultations, interest payments, marginal position leverage, collateral in futures trading and improved customer service for those with significant holdings.
How can exchange coins be used?
The specifics may vary.
Some of the common use cases for exchange coins include a method for payment, governance, contest funding or improving liquidity.
The exact details of an exchange coin will depend on the issuer. However, they will most likely hold a utility function within their given ecosystem and will be used for payment at an exchange, trading, deposit, listing or withdrawal fees.
Alternatively, many coins provide users voting rights on different decisions in the ecosystem.
The intent is that as exchanges become more decentralized over time, token holders will take on a more significant governance role, with the ability to determine the response to issues around budget usage and development. In addition to governance, exchanges may also choose to provide other member-only benefits to their token holders.