BNB vs CFT – Fee Token Comparison


Features

Token comparison

Trading Discount

Community Voting

Airdrops

Max Supply

Year Issued

Issue Price

Burn Rate

Max Burn Amount

Exchange

CFT

Coss fee token

25% (Forever)

240,000,000

2018

$0.10

1,000,000 / Month

120,000,000 (50%)

COSS.io

BNB

Binance Coin

50% (Year 1) down to 0% (Year 5)

200,000,000

2017

$0.15

20% of Profits / Quarter

100,000,0000 (50%)

Binance.com

Binance Coin (BNB) is a well established fee-reduction token, which has gained large support alongside Binance’s success. The COSS fee token (CFT) is similar in many aspects to BNB. It too, allows traders to use it to pay fees on the COSS.io exchange and receive a discount on fees. See here for an introduction to CFT.

Comparing BNB vs. CFT

Both coins have a similar max supply and both intend to burn down the max supply to 50% of the max. CFT was issued at a similar price to BNB ($0.10 vs $0.15), however, due to the unprecedented success of the Binance exchange BNB has seen heights of $24 and continues to climb.

Token Fee Reduction Rates

CFT gives a fixed 25% discount on trading fees forever. The token is consumed when used to pay for fees. 50% of the tokens used for fees go back to COSS, the other 50% is distributed to COSS token holders in the FSA.

BNB initially gave 50% of fees in its first year, but each subsequent year the discount halves. Year 2 gives 25% discount, year 3 gives 12.5% discount, year 4 gives 6.25% discount. After 5 years, BNB will no longer offer a discount. BNB is consumed when using it to pay for fees. The token goes back to Binance.

Other Functions of the Tokens

CFT holders can participate in airdrops. Previous airdrops have included Substratum and Bitwatt. A set amount of tokens was divided amongst all CFT holders who held a minimum amount in their accounts. More features are planned for CFT, but have yet to be announced. A community voting feature is potentially coming.

BNB holders are also entitled to airdrops. Previous airdrops have included coins such as Enjin. Airdrops are distributed to the top BNB holders. Community voting has been possible for BNB holders, although no new votes have taken place since October 2018. Given the value of BNB, many places also accept it as a payment method.

In the future, Binance plans to release a DEX. The BNB token will be used to facilitate payments on the DEX once the coin moves to the Binance mainnet.

Token Burn Rates

CFT is being burned at a fixed rate of 1,000,000 CFT a month until max supply reaches 120,000,000. In 10 years time, the maximum amount of CFT will have been burned.

BNB has a different burn mechanic. Each quarter, it uses 20% of the exchange’s profits to buy back BNB and then burns these tokens. This results in a varied burn amount every three months.

Previous Binance Coin Burn Amounts:

Q1 (2017)986,000 BNB$1,500,000
Q2 (2017)1,821,586 BNB $40,000,000
Q3 (2018)2,220,314 BNB$30,000,000
Q4 (2018)2,528,767 BNB$32,000,000
Q5 (2018)1,643,986 BNB$17,000,000
Q6 (2018)1,623,818 BNB$9,400,000
Q7 (2019)829,888 BNB$15,600,000

Current Token Prices

Why Compare BNB vs. CFT?

Comparing CFT to BNB helps highlight the use case for the COSS fee token and how it differs from the COSS token. See here for a comparison of the coins in the COSS ecosystem.

Both coins have a utility purpose and in some respect their price doesn’t matter as the discount on fees they provide is relative (fixed percentage).

Traders new to COSS might be interested to learn that CFT can provide many of the same benefits as BNB, but on the COSS exchange. With COSS having the benefit of the fee split allocation (50% share of fees paid back to COSS token holders), there is an additional incentive to trade on COSS.

The CFT token is in its infancy, having begun trading at the very end of 2018. Looking at the performance of BNB is interesting as it maps out the potential future for CFT and the COSS exchange. Look at how the quarterly coin burns have helped raise BNB prices, even throughout bear markets. Although BNB benefits from additional speculation on Binance’s future, it is good to know that this token model works.

Your Thoughts on CFT

CFT is additional to the COSS token. Some members of the COSS community felt the fee reduction benefits of CFT could have been incorporated into the COSS token itself, but others disagree. The argument against this is that COSS is a passive income token and spending it on fees would not be desirable for those wanting to hold onto the token to continue receiving their FSA.

What are your thoughts on the implementation of CFT? Given how BNB has performed, do you think the CFT token can expect a similar future? Is it even fair to compare the two tokens?

COSS Fee Token (CFT) Introduction

COSS Fee Token (CFT) was introduced to the COSS exchange at the very end of 2018. In short, the CFT token enables you to get 25% off trading fees on COSS.io.

In Summary:

  • CFT gives 25% discount on fees
  • CFT is consumed to pay for fees
  • Value of CFT determined by market price on exchange
  • Half of CFT used for fees returned to COSS holders in FSA
  • Incentives for holding CFT such as voting and airdrops
  • Monthly burn of 1M CFT

How Does CFT Work

During its initial release, the CFT token could only be bought through an IEO (initial exchange offering) on COSS.io, where the price was fixed at $0.10. A few months later, public trading opened up and you can now buy CFT like any other token on the exchange for the market price.

Once you purchase CFT it goes to your CFT wallet. It will not be used to pay for fees unless you enable it in your settings page.

Once this setting is enabled, your fees will now be paid for in CFT instead of the currency you are trading. This will give you 25% off all trading fees paid with CFT.

Fee Example Without CFT

PairPriceAmountTotal CostFees
COSS/ETH0.000460002,5001.15000000 ETH1.000 COSS

A total of 2,500 COSS were purchased for the price of 1.15 ETH, with a fee of 1 COSS.

Fee Example With CFT

PairPriceAmountTotal CostFees
COSS/ETH0.000460002,5001.15000000 ETH0.750 CFT

The same amount of COSS was purchased for 1.15 ETH, but the fee was 0.75 CFT instead of 1 COSS. In this example, 1 COSS = 1 CFT, but note that the price of CFT is variable. As you can see, by using CFT, you make a saving of 25% on fees.

How Much CFT is Used for Fees?

Because CFT is used to pay for the fees, it needs a value. This value is determined by the open market pairs. An average price across all the CFT pairs is calculated, pairs with higher volume have more impact on the average price.

Current CFT trading pairs are COSS/ETH/BTC/USD/USDT.

If the CFT price across all these pairs is equal to $0.10, then the value of CFT when used for fees is $0.10

If the CFT/COSS had $10,000 volume @ $0.10 but CFT/USDT had $100 volume @ $0.01, the price used is still going to be close to $0.10. This is due to the higher volume on the CFT/COSS pair.

The current price below is how much CFT is worth when using it to pay for fees. Divide 1 by the dollar value below, and that is how many CFT are consumed per $1 of fees.

CFT and the Fee Split Allowance

The COSS exchange model splits 50% of all fees generated between COSS token holders. The fees are distributed in whatever coins they were collected in. Non-ERC coins are converted to ETH. This means, your FSA comes in a range of ERC tokens and ETH.

Because there is strong incentive to use CFT to pay fees because of the 25% discount, a large amount of CFT (~90%+) is currently received in the FSA.

Benefits of Receiving CFT in the FSA

Before CFT was introduced, a wide selection of tokens were generated from holding COSS and paid into your FSA wallet. However, due to the large variety of coins received, if you didn’t have a large amount of COSS tokens, you accumulated a lot of dust that was not worth distributing from your FSA wallet to your main wallet. Remember, distributing costs 0.001 ETH per token.

COSS holders now receive most of the FSA in CFT, which makes distributing their FSA more efficient for small holders.

The CFT markets should be more liquid than some of the altcoins received in the FSA, again making it easier to sell. In theory, there should always be a demand for CFT as it provides an instant 25% off fees.

Another benefit of receiving CFT in the FSA is it means most COSS holders can trade for free. As long as you hold COSS, you will always receive a steady stream of CFT to trade with, making those trade essentially free for you as you only paid 0.001 ETH to distribute them.

How Many CFT are Distributed in the Fee Split?

50% of CFT used for paying fees is given back to COSS token holders every week. The amount of CFT needed to pay a fee is calculated on a per trade basis and depends on the current market price of CFT.

Tables below assume 90% of fees paid with CFT and 50% of CFT is given to FSA.

DayTotal Exchange Fees ($)CFT Price ($)CFT to FSA
Mon20,0000.1090,000
Tues20,000 0.1090,000
Wed20,0000.08112,500
Thur20,0000.08112,500
Fri30,0000.08168,750
Sat10,0000.0590,000
Sun10,0000.0590,000
Total130,000753,750

In the example above, you can see that when the price of CFT fluctuates, more (or less) CFT is accumulated in the FSA. 750,000 CFT would be distributed to COSS holders and the rest returned to the exchange, removing it from supply for the time being.

DayTotal Exchange Fees ($)CFT Price ($)CFT to FSA
Mon20,0000.05180,000
Tues20,000 0.05180,000
Wed20,0000.03300,000
Thur20,0000.03300,000
Fri30,0000.03450,000
Sat10,0000.03150,000
Sun10,0000.03150,000
Total130,0001,710,000

If the price of CFT continues to decline, look at how the amount needed for fees rises. To maintain the same exchange volume with a declining CFT price as in this example meant 3.42M CFT were needed to pay fees. (1,710,000 x 2), but only 753,750 were distributed in the FSA the week before. The 2,666,250 CFT deficit would need to be purchased on the exchange or used from users holdings. This buying pressure would push the price of CFT up.

Incentives for Holding CFT

There is value in holding CFT as well as using it for fees. Previously, holders of 5,000 and 10,000 CFT have been rewarded with Substratum and Bitwatt airdrops.

The CFT must be in your account wallet (i.e. not FSA wallet) to receive the airdrops. There are more planned, although the amount of CFT you will need to hold is very likely to change.

Also mentioned was the possibility for using CFT to vote for things such as community listings. This has not yet been implemented, but is planned at some point for the future. Many other features are also on the drawing board.

You could also hold CFT just for the speculation on its price rising. The price of CFT is likely to rise, as long as COSS maintains a working exchange. This is due to the fact that 50% of circulating CFT is returned to the exchange via the fee split every week and the economics of the token imply upwards price trend.

As the price decreases more CFT is required for fees and people use their holdings faster, needing to buy more. Yes, people also receive more CFT in their FSA, but only 50% of what was circulating last week, so demand exceeds supply.

About the CFT Token

Token Details

  • Maximum supply: 240,000,000 CFT
  • For sale: 120,000,000 CFT
  • For CAP (COSS Affiliate Program) = 20,000,000 CFT
  • For promos/airdrops = 10,000,000 CFT
  • For cross platform partnerships: 30,000,000 CFT
  • Reserve pool/burn/bonuses: 60,000,000 CFT
  • Token contract on Etherscan

Token Price at IEO

  • 20,000,000 CFT @ $0.10
  • 15,000,000 CFT @ $0.12
  • 15,000,000 CFT @ $0.14
  • 10,000,000 CFT @ $0.16
  • 10,000,000 CFT @ $0.18
  • 10,000,000 CFT @ $0.20
  • 10,000,000 CFT @ $0.22
  • 10,000,000 CFT @ $0.24
  • 20,000,000 CFT – Private sale ($0.08)

The 20,000,000 CFT @ $0.10 did not sell out, so the remaining CFT was put on the market across a larger spread in smaller 100,000 amounts e.g. 100,000 @ $0.101, 100,000 @ $0.102. The remaining CFT left from the private sale has been committed to be burned.

Token Burn

A monthly burn of 1,000,000 CFT takes place at the start of every month and will continue for 10 years until the circulating supply is down to 120,000,000.

CFT can be burned using function 4 of the smart contract. This can be access through Etherscan and connecting with Metamask, doing so will burn the coins from your ethereum wallet and reduce the circulating supply.

Coss Fee Token (CFT) Launch Recap

CFT Trading Promotion

Coss Fee Token (CFT), the token that gives you 25% discount on trading fees at COSS.io was opened on the public markets yesterday, after initially being available only through an IEO at $0.10.

The launch went ahead smoothly and on schedule. There were some good deals scooped up within the first few hours, but the price stabilised at around $0.04 fairly quickly.

COSS’s exchange model is to distribute 50% of all fees paid back to holders of the COSS token, so for the last few months all COSS token holders have been earning CFT. This CFT was previously not sellable on the exchange, meaning a large amount of CFT has been building up in the wallets of COSS holders.

With this in mind, many expected the market price of CFT to plummet after launch, due to many looking to cash out.

CFT Initial Price and Volume Movements


As expected, the price of CFT did drop below its IEO price of $0.10, but not as low as many predicted. The price of CFT has been fluctuating between $0.03 and $0.05 across the BTC/ETH/COSS pairs. From 24 hours worth of data, there seems to be a slight upwards price movement.

Trade volume of CFT peaked at around $28,000 and has now settled closer to the $9,000 mark.

Initial markets were CFT/ETH, CFT/BTC and CFT/COSS with CFT/USD and CFT/USDT becoming available the next day. Currently ETH and COSS pairs have the highest volume.

Why CFT Price Doesn’t Really Matter Anymore

All fee split allowances earned since the introduction of CFT have used the $0.10 price point to determine the dollar value of the FSA, which recently has been around $2 per 10,000 COSS.

This means that anyone selling their CFT for the current spot price is losing half the value of their FSA. Which is an unfortunate loss in FSA value for the past few months.

The FSA distribution that occured on the same day as CFT trading had some people confused as it included roughly the same amount of CFT as the previous week, but he dollar value of the FSA had halved. This of course, was due to the price of CFT now being pegged to the market price, which has halved.

Despite this, CFT opening for trade is a good thing. With the price being lower, more CFT is now required to pay trading fees. Almost double the amount of CFT is now needed to pay fees compared to before.

With double CFT being used for fees, this means double the amount of CFT will heading in to the wallets of COSS holders, which of course will make up for the drop in price. The FSA dollar value should therefore go back to around $2 per 10,000 COSS from next week.

With CFT being open for trade, there is no more uncertainty on its value – the price is determined by the market. Without uncertainty, we may now see more people willing to purchase CFT for trading fees, but also for the upcoming incentives of holding CFT, such as air drops.

CFT Tokens Held By COSS

The previous plan was that COSS would keep selling the CFT they hold in the price pools that were open during the IEO, they were:

  • 20,000,000 CFT @ $0.10
  • 15,000,000 CFT @ $0.12
  • 15,000,000 CFT @ $0.14
  • 10,000,000 CFT @ $0.16
  • 10,000,000 CFT @ $0.18
  • 10,000,000 CFT @ $0.20
  • 10,000,000 CFT @ $0.22
  • 10,000,000 CFT @ $0.24
CFT trading walls on the USD pair

When trading opened, these 10 million+ walls had been replaced by smaller 50-100,000 walls at a wider spread of prices. This should allow the price of CFT to rise faster .

To the right is an example of what the order book looks like now on CFT/USD for a simple comparison. You can see the smaller walls will allow the price to rise more smoothly, rather than reaching $0.12 for example and getting stuck there until 10,000,000 CFT sells as well as the other sell orders placed by users.

Also worth noting is that the walls go all the way up to $0.50 now instead of stopping at $0.24. This is the same across all CFT pairs.

Also worth noting that the CFT monthly burn took place on 1st April, reducing the supply by 1M to 238M. You can check the total supply on etherscan. Also promised was the burn of any unsold tokens set aside for private trades. This has not occured yet, but is planned.

CFT Trading Promotion Live

The CFT trading promotion opened alongside the launch of CFT trading. All trading volume on any pairs counts towards your rankings in the promo. With such a large incentive for trading and lower prices of CFT, this could help drive the demand for the token on the exchange.

CFT Coss Fee Token Promotion

It would be interesting to hear what you think will happen to the price of CFT over the next few days/weeks/months. Do you think this is the price it will stabilise at for a while, or do you think we are due some more volatility?

When Does CFT Trading Start?

CFT Trading opens April 1st

COSS Fee Token (CFT) is due to begin trading imminently. With a lot of speculation on price, there could be some good opportunities for those traders ready to trade when CFT markets open.

Trading of CFT is scheduled for 16:00 (GMT+8) or 08:00 GMT April 1st 2019. Singapore time is shown below.

Current Time (SGT GMT+8)

CFT Trading Pairs at Launch

CFT is due to begin trading on COSS.io in the following markets:

  • CFT/BTC
  • CFT/ETH
  • CFT/USDT
  • CFT/USD
  • CFT/COSS

What to Expect When CFT Trading Goes Live

Since the launch of CFT on December 3rd 2018, the FSA has been predominantly CFT. Each week has seen CFT make up around 90%+ of the FSA. With this in mind, there is a lot of CFT that has been locked up in people’s wallets as they have been unable to sell.

Some of the CFT has been reused for fees, essentially allowing traders to trade for free with the CFT earned in their FSA. But of course, people will be raring to sell some to realise the value of their FSA.

What is expected and what actually happens aren’t always the same in cryptocurrency. What is expected of the CFT trading launch is a deluge of CFT tokens hit the market, with greater selling pressure than buying demand. This scenario would push the value of CFT down (which is currently fixed at $0.10).

Should I Sell CFT or Buy CFT on April 1st?

Over the past few weeks, there have been a couple of airdrops to CFT holders. First a Substratum airdrop for holders of 5,000 CFT and secondly a Bitwatt airdrop for holders of 10,000 CFT.

Both of these airdrops show that the CFT token holds value outside its native function to reduce fees by 25%.

Future Incentives to Hold CFT and not Sell?

These airdrops came somewhat unexpected by the community. Some speculate that another incentive to hold CFT (and thus minimise selling pressure) could be announced around CFT trading opening.

Also, bear in mind the CFT trading promotion that is due to start around the same time as CFT markets opening. The trading promotion, in theory, should drive demand for CFT as exchange-wide promotional volume increases and people look to CFT to reduce fees.

CFT Fixed Price Points

COSS is selling 100,000,000 CFT at fixed price points on their exchange in ‘pools’. Once the $0.10 pool sells out, the next pool ($0.12) opens and so on. All the price pools are shown below:

  • 20,000,000 CFT @ $0.10
  • 15,000,000 CFT @ $0.12
  • 15,000,000 CFT @ $0.14
  • 10,000,000 CFT @ $0.16
  • 10,000,000 CFT @ $0.18
  • 10,000,000 CFT @ $0.20
  • 10,000,000 CFT @ $0.22
  • 10,000,000 CFT @ $0.24

This means that as long as the exchange keeps operating and CFT is used, eventually the price will have to rise to $0.24 and beyond. This alone is another incentive for people to hold CFT as well as use it.

On The Economics of CFT

The economics of CFT are interesting. The value at which CFT is consumed for fees is dependent on its average price on the exchange. This means that if the price of CFT falls, more CFT is consumed for fees.

A hypothetical scenario; a trade costs $1.00 in fees, it therefore uses 10 CFT at $0.10. If the CFT price fell to $0.01, the exact same trade would now cost 100 CFT, meaning 10x more CFT is shared in the FSA.

50% of CFT is returned back to COSS holders through the FSA, with 50% going back to the COSS exchange, being ‘removed’ from circulation. This coupled with a price drop of CFT meaning more CFT is needed for each trade would lead to the CFT pools (see above) selling out quicker. This would lead to an upwards price trend.

CFT Trading Expected to be Volatile and Exciting

Initially, the price of CFT is expected (and likely) to drop, due to the sheer amount of expected selling pressure, but there are a lot of good reasons to hold CFT for the long term.

Expect people to try and profit from swing trading in the volatile CFT markets opening April 1st, but also don’t underestimate the traders with foresight and large investors/institutions, looking to scoop up cheap CFT to use for their own trading.

Anyone looking to trade CFT on April 1st, good luck to you. There will almost definitely be profits to be made and fun to be had!