Token Utility and Mechanics
The $OTX token serves as the core asset of the otX.markets platform. It enables three main functions:
Revenue Sharing – Holders of staked OTX earn a share of platform fees. Specifically, 80% of fees collected (in USDC or HYPE) are distributed to stakers.
Fee Discounts – Users receive trading fee discounts based on the amount of OTX they stake. Discount tiers are structured with fixed OTX thresholds. The effective fee for a user is calculated as:
effective_fee = base_fee × discount_multiplier
where discount_multiplier depends on the user’s staked amount tier.
P2P Operator Collateral – Operators who facilitate OTC trades must stake an amount of OTX equivalent to at least 100% of the deal value. The collateral is held in escrow by the protocol smart contracts during the trade lifecycle.
Token Allocation and Emissions
Max Supply: 1,000,000 OTX (no inflation, no minting beyond cap).
Category | Tokens | % |
|---|
Airdrops & Incentives | 600,000 | 60% |
Early Investors | 200,000 | 20% |
Team & Advisors | 100,000 | 10% |
Reserve for Emissions | 100,000 | 10% |
Fee Utilization Breakdown
Fee Type | Rate | Applied To | When Collected |
|---|
Cancel Offer Fee | 0.5% | Remaining amount of a canceled offer | Upon offer cancellation |
Settlement Fee | 2.5% | Total collateral value of seller's orders during settlement | When seller initiates settlement |
Buy Token Fee | 2.0% | Collateral amount when a buyer claims TGE tokens | During buyer's settlement claim |
Default Order Fee | 0.5% | Principal of orders that default (not settled by expiry) | When defaulted orders are processed |
Fees incurred on every trade are split as follows:
80% redistributed to stakers as revenue share.
10% used in buy-back operations, permanently burning OTX tokens, which creates deflationary pressure by reducing circulating supply:
10% allocated to the otX treasury, funding operations, development, and audits.
Revenue Sharing
Revenue sharing is calculated only from actively staked OTX, not the total supply or theoretical circulating supply. This design ensures:
Only stakers participate in revenue share; unstaked tokens do not earn fees.
The float for revenue share is the sum of staked OTX, denoted as W_t for epoch t:
Each staker’s weight is given by:
where:
W_t = Σ_i weight_i
Each staker’s weight is given by:
weight_i = staked_tokens_i × (1 + lock_duration_i / 90)
Without locking, weight_i = staked_tokens_i × 1.
The individual’s revenue share each epoch is calculated as:
where:
R_t is the total revenue pool collected during epoch t (fees × 80%)
This ensures the sum of all shares over all stakers equals R_t exactly.
The above design guarantees revenue emissions are bounded: no more than R_t is ever distributed, regardless of the number of stakers or the weight distribution.
Example Revenue Share Calculation
Assume: Platform fees collected this week: $10,000. Revenue pool R_t = $8,000 (80% of fees).Total staked weight W_t = 100,000. Alice stakes 5,000 OTX, locked 45 days → weight = 5,000 × (1 + 45/90) = 7,500.
Her revenue share: $7,500
Staking Details
Minimum staking amount: 1 OTX.
Optional locking period: up to 90 days for up to 2x weight.
Cooldown period: 7 days after unstaking request before tokens are released.
Weekly distribution of revenue ensures predictable income for active stakers.
Fee Discount Tiers
OTX staked grants trading fee discounts, calculated using fixed thresholds:
Tier | Staked $OTX | Discount Multiplier | Example Seller Fee |
|---|
0 | 0 | 1 | 2.50% |
1 | 500 | 0.9 | 2.25% |
2 | 2,000 | 0.75 | 1.88% |
3 | 8,000 | 0.60 | 1.50% |
4 | 20,000 | 0.40 | 1.00% |
5 | 40,000 | 0.25 | 0.63% |
A user's effective fee for any platform service is given by:
effective_fee = base_fee × multiplier (from tier)
Deflationary Dynamics
Buy-back and burn mechanism uses 10% of all platform fees, converted to OTX via TWAP buys on DEXs, and sends them to a burn address:
With constant trading activity, circulating supply gradually decreases, creating sustained scarcity.
