OKB

About OKB

OKB is a native token of the OKEx cryptocurrency exchange, first launched in 2018. It plays a central role in the OKEx ecosystem, providing participation, reduced trading fees and other benefits. At the beginning of 2024, OKB has a market capitalisation of more than $1 billion, making it one of the top 50 cryptocurrencies.

Creation and distribution of OKB

Initially, one billion OKB tokens were created. Of these, 700 million – 70 per cent of the total – were distributed to the OK Blockchain Foundation to support research and development and promote the OKEx ecosystem in the long term. The remaining 30 per cent, or 300 million OKB, were distributed by OKEx users through initial exchange offers, merchant rewards and other community development initiatives.

This distribution emphasises OKEx’s long-term plan to develop and expand the capabilities and usefulness of the OKB token and the OKEx platform over the next ten years, rather than short-term gains.

OKB use cases

From the outset, OKEx wanted OKB to play a key role in its cryptocurrency exchange system. Owning the token allows for lower trading fees on the platform and access to new tokens as part of OKEx’s Jumpstart project. In addition, owning OKB entitles you to higher withdrawal limits, exclusive customer support, betting rewards and investment products only available to OKB holders on the exchange.

Over time, additional features and functionalities have been added to further integrate the token into OKEx’s operations.

The main benefit OKEx users get when they hold OKBs is reduced trading fees. If you hold at least 500 OKBs for 30 days, trading fees for cash, margin, futures, perpetual swaps and options are significantly reduced, in some cases by more than 50 per cent.

The greater the amount of OKBs, the greater the reduction, up to 65 per cent compared to those who don’t hold them. This incentive allows traders to save continuously, which can increase significantly, especially with large volumes of transactions.

Another popular offer related to OKB holdings is access to participation in OKEx Jumpstart. Jumpstart is a token-issuing platform integrated into OKEx that allows users to acquire promising new cryptocurrency projects ahead of a wider public listing.

Owning a certain number of OKB tokens allows traders to access initial exchange offers (IOIs) realised through Jumpstart at preferential prices before they become available to the general market. In the past, traders have benefited significantly from participating in major cryptocurrencies such as SKALE, AERGO and FOR through Jumpstart.

OKB technical details

The OKB token was originally launched as an ERC-20 token on the Ethereum blockchain. In 2021, the main OKEx chain was launched in native mode to improve performance and speed up settlement times, which is more suitable for exchange-related functions.

The native OKT token now forms the basis of OKB functions instead of Ethereum, and a token bridge ensures seamless interoperability between the OKB versions of ERC-20 and native OKT.

The OKEx chain uses the DPoS (Delegated Proof of Stake) consensus model. This model allows for greater scalability and better performance than models such as proof of work. The time needed to create a block is currently 0.5 seconds.

OKT’s owners choose 21 “supernodes” to validate transactions and protect the network in exchange for rewards. This governance model provides continuous incentives to maximise the development of the platform.

OKB’s development prospects

The continued success of OKB is closely linked to the adoption and development of the OKEx platform itself as a native trading token. Continued growth in trading volume, the introduction of options, futures and credit products, new DeFi integrations across the OKEx chain and adoption in areas such as NFT trading will ultimately determine the development of OKB’s listing.

If OKEx continues to develop its capabilities and establish itself as one of the world’s leading exchanges, OKB will have significant long-term growth potential. Cryptocurrency analysts estimate that OKB’s price could reach 100 dollars or more within five years, if the cryptocurrency market’s bullish conditions and transaction volumes continue in 2024 and beyond. However, there is also a downside risk if the exchange’s market share declines compared to its main competitors.

Conclusion

As a native token on the leading OKEx cryptocurrency exchange, OKB offers lower trading fees, participation in promising token launches and other benefits. Due to the high trading volumes on the exchange and the constant development of the ecosystem, OKB has established itself as a cryptocurrency with a market capitalisation in the top 50 today.

The next few years, closely linked to OKEx’s growth and its positioning in the market, will be crucial in determining whether OKB can continue to rise in the hierarchy of leading digital assets or whether it will fall back to the middle tier. Either way, the token could offer unique long-term value for holders willing to support the exchange’s evolving ecosystem.