UPDATE: Following the merger of COSS/LALA, CFT has been discontinued and its functionality is now incorporated in to the new COS token.
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.
- 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
|COSS/ETH||0.00046000||2,500||1.15000000 ETH||1.000 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
|COSS/ETH||0.00046000||2,500||1.15000000 ETH||0.750 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 $1 of fees.
CFT and the Fee Split Allowance
The COSS exchange model splits 50% of all fees generated between COSS token holders. The fees are distributed in whatever coins they were collected in. Non-ERC coins are converted to ETH. This means, your FSA comes in a range of ERC tokens and ETH.
Because there is strong incentive to use CFT to pay fees because of the 25% discount, a large amount of CFT (~90%+) is currently received in the FSA.
Benefits of Receiving CFT in the FSA
Before CFT was introduced, a wide selection of tokens were generated from holding COSS and paid into your FSA wallet. However, due to the large variety of coins received, if you didn’t have a large amount of COSS tokens, you accumulated a lot of dust that was not worth distributing from your FSA wallet to your main wallet. Remember, distributing costs 0.001 ETH per token.
COSS holders now receive most of the FSA in CFT, which makes distributing their FSA more efficient for small holders.
The CFT markets should be more liquid than some of the altcoins received in the FSA, again making it easier to sell. In theory, there should always be a demand for CFT as it provides an instant 25% off fees.
Another benefit of receiving CFT in the FSA is it means most COSS holders can trade for free. As long as you hold COSS, you will always receive a steady stream of CFT to trade with, making those trade essentially free for you as you only paid 0.001 ETH to distribute them.
How Many CFT are Distributed in the Fee Split?
50% of CFT used for paying fees is given back to COSS token holders every week. The amount of CFT needed to pay a fee is calculated on a per trade basis and depends on the current market price of CFT.
Tables below assume 90% of fees paid with CFT and 50% of CFT is given to FSA.
|Day||Total Exchange Fees ($)||CFT Price ($)||CFT to FSA|
In the example above, you can see that when the price of CFT fluctuates, more (or less) CFT is accumulated in the FSA. 750,000 CFT would be distributed to COSS holders and the rest returned to the exchange, removing it from supply for the time being.
|Day||Total Exchange Fees ($)||CFT Price ($)||CFT to FSA|
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
- 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.
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.