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BMEX Explained - A Guide to the BitMEX Token (BMEX)
- Thomas DeMichele
What Is the BMEX Token?
The BMEX Token (BMEX) is a utility token created by BitMEX. BMEX launched in 2022 and can be used to unlock various benefits on the BitMEX platform. By staking BMEX tokens, users can enjoy discounts on trading fees and other exclusive privileges.
What Are the Benefits of Staking BMEX Tokens?
Staking BMEX tokens can give users access to several benefits, such as:
- Up to 15% on trading fee discounts: staking BMEX gives additional trading fee discounts on top of any ADV-based fee tier.
- Up to 12% APR on the BMEX token.
- Refunds on withdrawal fees.
- Exclusive privileges and experiences such as early product access, BitMEX SWAG, and tickets to sporting events.
- VIP services for large token holders.
- A monthly token burns, increasing the BMEX token’s scarcity over time.
BMEX Token Burning Mechanism
To create a continuous utility ecosystem for BMEX holders, BitMEX intends to burn BMEX every month. The amount of BMEX eligible for buying and burning are:
- 4% of the Net Fee from derivatives markets
- 8% of the Net Fee from spot markets
- 50% of the Net Fee from BMEX Token trading pairs (on the BitMEX Derivatives & Spot Markets)
Net Fees are defined as: Collected Taker Fees + Maker Fees – Maker rebate – affiliates/referral rewards, promotional discounts, payment processor fees, and third-party costs associated with the service provision.
BMEX Benefits Table
By staking BMEX, you’ll immediately get to enjoy taker fee discounts of up to 15% and a 12% APR. The more BMEX you stake, the higher your taker fee discount. You’ll also get extra bonuses with higher staked amounts.
You can see a full breakdown of benefits using the table below:
| BMEX Stake | Taker Fee | APR | Lottery | VIP | Withdrawal Fee Refund |
|---|---|---|---|---|---|
| 25 | 1% | 5% | 0 / Week | ||
| 200 | 2% | 5% | 0 / Week | ||
| 1,000 | 4% | 8% | Y | 3 / Week | |
| 10,000 | 6% | 8% | Y | 3 / Week | |
| 50,000 | 8% | 10% | Y | 10 / Week | |
| 500,000 | 10% | 10% | Y | Y | 10 / Week |
| 1,000,000 | 12% | 12% | Y | Y | 25 / Week |
| 3,500,000 | 15% | 12% | Y | Y | 25 / Week |
NOTE: The discounts above apply in addition to any ADV-based fees and discounts. To learn more, visit the Fees page.
How to Stake BMEX Tokens in 5 steps
If you’re interested in staking your BMEX tokens, here’s a step-by-step guide on how to do it:
- Sign in to your BitMEX account.
- Go to your BitMEX Wallet.
- Press the ‘Stake’ button next to your BMEX balance.
- Set your staking amount, the minimum 25 BMEX, but you can stake more. The bigger the amount you stake, the greater the discount on your taker fees when trading on BitMEX.
- Click the ‘Increase stake’ button to confirm your staking amount.
Confirming your staking amount will update your taker fee discount immediately.
The Bottom Line
The BMEX token follows in the footsteps of other exchange utility tokens by offering a trading discount and APY.
While you have to stake to get the full benefits, staking BMEX is simple. Overall it’s a no-brainer that anyone who signs up for the BitMEX referral program also makes sure they have at least 25 BMEX in their wallet.
For more, including an exclusive discount on BitMEX, check out our BitMEX Referral Program Review.
