Token Utility Overview

The use.com native token (USE) is designed as a multi-utility asset that powers the entire exchange ecosystem. Unlike many exchange tokens that offer limited benefits, USE provides comprehensive utility across trading, governance, staking, and ecosystem participation, creating sustainable value for holders.

Core Token Utilities

1. Trading Fee Discounts

Primary Benefit: Reduced trading fees across all products.

Discount Tiers:

Holdings	Tier	Spot Discount	Futures Discount	Max Savings
1,000 - 5,000	Bronze	5%	5%	~$50/month*
5,000 - 25,000	Silver	10%	10%	~$200/month*
25,000 - 100,000	Gold	15%	15%	~$750/month*
100,000 - 500,000	Platinum	20%	20%	~$2,000/month*
500,000+	Diamond	25%	25%	~$5,000/month*

*Based on $100K monthly trading volume

Discount Formula: $Effective\_Fee = Base\_Fee \times (1 - Discount\_Rate)$

Example Calculation:

• Monthly Volume: $500,000

• Base Fee (VIP 1 Taker): 0.13%

• Token Holdings: 50,000 USE (Gold Tier)

• Discount: 15%

• Base Cost: $500,000 × 0.13% = $650

• Discounted Cost: $650 × (1 - 0.15) = $552.50

• Monthly Savings: $97.50

2. Enhanced Staking Rewards

Staking Mechanism: Lock tokens to earn additional benefits and rewards.

Staking Tiers:

Staked Amount	Lock Period	APY	Additional Benefits
1,000+	30 days	8%	1.2× fee discount multiplier
5,000+	90 days	12%	1.5× fee discount multiplier
25,000+	180 days	18%	2.0× fee discount multiplier
100,000+	365 days	25%	3.0× fee discount multiplier

Staking Reward Formula: $Annual\_Reward = Staked\_Amount \times APY$

Enhanced Discount Formula: $Enhanced\_Discount = Base\_Discount \times Staking\_Multiplier$

Example:

• Staked: 50,000 USE for 180 days

• Base Discount: 15% (Gold Tier)

• Staking Multiplier: 2.0×

• Enhanced Discount: 15% × 2.0 = 30%

• Annual Staking Reward: 50,000 × 18% = 9,000 USE

3. Governance Rights

Voting Power: Token holders participate in platform governance.

Voting Weight Formula: $Voting\_Power = \sqrt{Staked\_Tokens} \times Time\_Multiplier$

Where Time_Multiplier increases with staking duration:

• 30 days: 1.0×

• 90 days: 1.2×

• 180 days: 1.5×

• 365 days: 2.0×

Governance Scope:

• New token listings

• Fee structure adjustments

• Product feature prioritization

• Treasury allocation decisions

• Protocol upgrades

Example:

• Staked: 100,000 USE for 365 days

• Base Voting Power: √100,000 = 316.23

• Time Multiplier: 2.0×

• Total Voting Power: 316.23 × 2.0 = 632.46 votes

Proposal Requirements:

• Minimum to propose: 100,000 USE staked

• Quorum: 5% of total staked supply

• Approval threshold: 66% majority

4. Liquidity Mining Boost

Mechanism: Token holders receive enhanced rewards in liquidity mining programs.

Boost Formula: $Boosted\_Reward = Base\_Reward \times (1 + Boost\_Factor)$

Boost Tiers:

Holdings	Boost Factor	Example Boost
0	0%	1.0×
1,000 - 5,000	20%	1.2×
5,000 - 25,000	50%	1.5×
25,000 - 100,000	100%	2.0×
100,000+	200%	3.0×

Example:

• Base Daily Reward: $100

• Holdings: 50,000 USE

• Boost Factor: 100%

• Boosted Reward: $100 × 2.0 = $200/day

• Additional Monthly Income: $3,000

5. IEO/Launchpad Access

Exclusive Access: Token holders get priority access to new token launches.

Allocation Tiers:

Tier	Holdings Required	Max Allocation	Guaranteed Allocation
Bronze	5,000	$500	$100
Silver	25,000	$2,500	$500
Gold	100,000	$10,000	$2,000
Platinum	500,000	$50,000	$10,000
Diamond	1,000,000+	$100,000	$25,000

Allocation Formula: $User\_Allocation = \min(Max\_Allocation, \frac{User\_Holdings}{\sum All\_Holdings} \times Total\_Raise)$

Example IEO:

• Total Raise: $5M

• Your Holdings: 100,000 USE (Gold Tier)

• Total Participating Holdings: 50M USE

• Your Share: 100,000 / 50,000,000 = 0.2%

• Calculated Allocation: $5M × 0.2% = $10,000

• Final Allocation: min($10,000, $10,000) = $10,000

6. VIP Services Access

Premium Features: Higher tiers unlock exclusive services.

VIP Benefits by Tier:

Service	Bronze	Silver	Gold	Platinum	Diamond
Dedicated Support	❌	✅	✅	✅	✅
Priority Withdrawals	❌	✅	✅	✅	✅
OTC Desk Access	❌	❌	✅	✅	✅
Custom API Limits	❌	❌	✅	✅	✅
Account Manager	❌	❌	❌	✅	✅
Co-location	❌	❌	❌	❌	✅

API Rate Limits:

• Standard: 1,200 requests/minute

• Gold: 2,400 requests/minute

• Platinum: 6,000 requests/minute

• Diamond: 12,000 requests/minute

7. Margin & Leverage Benefits

Enhanced Leverage: Token holders access higher leverage limits.

Leverage Tiers:

Holdings	Spot Margin	Futures Leverage	Maintenance Margin
None	3×	20×	5%
Bronze	5×	50×	4%
Silver	7×	75×	3.5%
Gold	10×	100×	3%
Platinum+	10×	125×	2.5%

Lower Margin Requirements: $Required\_Margin = \frac{Position\_Value}{Leverage} \times (1 - Token\_Discount)$

Example:

• Position: $100,000

• Standard Leverage: 20×

• Gold Tier Leverage: 100×

• Standard Margin: $100,000 / 20 = $5,000

• Gold Margin: $100,000 / 100 = $1,000

• Capital Efficiency: 5× improvement

8. Referral Program Enhancement

Boosted Commissions: Token holders earn higher referral rewards.

Commission Tiers:

Holdings	Base Commission	Boosted Commission	Lifetime Earnings Cap
None	20%	20%	Unlimited
Bronze	20%	25%	Unlimited
Silver	20%	30%	Unlimited
Gold	20%	40%	Unlimited
Platinum+	20%	50%	Unlimited

Commission Formula: $Monthly\_Commission = \sum Referral\_Fees \times Commission\_Rate$

Example:

• Referrals' Monthly Fees: $10,000

• Holdings: Gold Tier

• Commission Rate: 40%

• Monthly Earnings: $10,000 × 40% = $4,000

9. Insurance Fund Participation

Shared Protection: Token stakers contribute to and benefit from insurance fund.

Mechanism:

• 10% of trading fees → Insurance fund

• Stakers share in fund growth

• Protection against platform losses

Distribution Formula: $User\_Share = \frac{User\_Staked\_Tokens}{\sum All\_Staked\_Tokens} \times Fund\_Growth$

Example:

• Your Staked: 100,000 USE

• Total Staked: 50M USE

• Quarterly Fund Growth: $5M

• Your Share: (100,000 / 50,000,000) × $5M = $10,000

10. Ecosystem Access

Partner Benefits: Access to partner platforms and services.

Integrated Services:

• DeFi protocols (lending, yield farming)

• NFT marketplaces

• Gaming platforms

• Payment processors

• Educational resources

Example Benefits:

• 50% discount on partner DeFi protocol fees

• Priority access to NFT drops

• Exclusive gaming tournaments

• Reduced payment processing fees

Token Value Accrual Mechanisms

1. Buyback & Burn

Mechanism: Exchange uses profits to buy and burn tokens.

Allocation: 10% of quarterly profits

Burn Formula: $Tokens\_Burned = \frac{Buyback\_Budget}{Average\_Token\_Price}$

Example:

• Quarterly Profit: $50M

• Buyback Budget: $5M (10%)

• Average Token Price: $2.50

• Tokens Burned: $5M / $2.50 = 2M tokens

• Supply Reduction: 0.2% per quarter

Long-term Impact: $Supply_{year\_n} = Supply_{initial} \times (1 - Burn\_Rate)^n$

2. Staking Demand

Lock-up Effect: Staking reduces circulating supply.

Target Staking Rate: 40% of total supply

Supply Impact: $Circulating\_Supply = Total\_Supply \times (1 - Staking\_Rate)$

Example:

• Total Supply: 1B tokens

• Staking Rate: 40%

• Circulating Supply: 1B × 60% = 600M tokens

• Effective Supply Reduction: 40%

3. Utility Demand

Organic Demand: Users buy tokens for utility benefits.

Demand Drivers:

• Fee discounts (continuous demand)

• IEO participation (periodic spikes)

• Governance voting (event-driven)

• Liquidity mining (sustained demand)

Estimated Monthly Demand: $Monthly\_Demand = \frac{Monthly\_Trading\_Volume \times Avg\_Fee \times Discount\_Value}{Token\_Price}$

Example:

• Monthly Volume: $10B

• Average Fee: 0.10%

• Average Discount: 15%

• Discount Value: $10B × 0.10% × 15% = $1.5M

• Token Price: $2.50

• Monthly Demand: $1.5M / $2.50 = 600K tokens

Token Economics Model

Supply-Demand Equilibrium

Price Discovery: $Token\_Price = \frac{Total\_Utility\_Value}{Circulating\_Supply}$

Utility Value Components:

1. Fee Discount Value: $X million/year

2. Staking Rewards: $Y million/year

3. Governance Rights: $Z million/year

4. Other Benefits: $W million/year

Total Utility Value: $X + $Y + $Z + $W

Example Valuation:

• Fee Discount Value: $100M/year

• Staking Rewards: $50M/year

• Governance Value: $20M/year

• Other Benefits: $30M/year

• Total Utility: $200M/year

• Circulating Supply: 600M tokens

• Implied Token Price: $200M / 600M = $0.33

• With growth premium (5×): $1.65

Network Effects

Metcalfe's Law Application: $Network\_Value \propto Users^2$

Token Value Growth: $Token\_Value_t = Token\_Value_0 \times \left(\frac{Users_t}{Users_0}\right)^{1.5}$

Example:

• Initial Users: 10,000

• Initial Token Price: $1.00

• Users after 1 year: 100,000 (10× growth)

• Price Multiplier: (100,000 / 10,000)^1.5 = 31.6×

• Projected Price: $1.00 × 31.6 = $31.60

Comparative Analysis

Token Utility Comparison

Feature	use.com	Binance	FTX*	Coinbase
Fee Discount	Up to 37.5%	Up to 25%	Up to 60%	None
Staking APY	Up to 25%	Up to 10%	Up to 8%	Up to 5%
Governance	Yes	Limited	Yes	No
IEO Access	Yes	Yes	Yes	No
Leverage Boost	Yes	No	Yes	No
Insurance Share	Yes	No	Yes	No

*Historical data

Competitive Advantages:

• Higher maximum discounts

• Better staking rewards

• More comprehensive utility

• Stronger value accrual

Token Utility Roadmap

Q1 2025: Launch with core utilities (fees, staking, governance) Q2 2025: IEO launchpad, enhanced liquidity mining Q3 2025: Insurance fund participation, partner ecosystem Q4 2025: Cross-chain utility, DeFi integrations 2026: Advanced features (options trading benefits, algorithmic trading tools)

Conclusion

The USE token provides comprehensive utility across the entire exchange ecosystem, creating sustainable demand and value accrual. Through trading benefits, staking rewards, governance rights, and ecosystem access, token holders gain significant advantages while contributing to platform growth and decentralization.

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Related Sections:

• Fee Model

• Liquidity Strategy

• Governance Framework