What is an Exchange Platform Token

2025lovepeace

2025-12-26 05:00:22

Platform tokens are digital assets issued by cryptocurrency exchanges. Cryptocurrency exchanges may issue their own tokens for various reasons. Most platform tokens are typically used as rewards to incentivize traders to bring more liquidity to the exchange or as discounts on trading fees to encourage more trading activity. Additionally, platform tokens issued by exchanges can also be used to promote community governance of the exchange.

Liquidity Incentives

Cryptocurrency exchanges may use their platform tokens as incentives to encourage traders to bring more liquidity to the market. For example, generally, DEXs distribute their platform tokens as rewards to traders who provide liquidity to pools within a specific period, aiming to attract traders to help increase the liquidity of the pools.

Trading Activity Incentives

Cryptocurrency exchanges usually require traders to pay trading fees when executing orders. In most cases, to encourage trading activity, users will receive fee discounts when paying trading fees with platform tokens. Moreover, some exchanges may offer tiered fee discounts based on the amount of platform tokens held in the user’s account.

Promoting Governance

Cryptocurrency exchanges may distribute platform tokens for governance purposes. Holders of these tokens will have voting rights over the future development of the exchange. Although this use case is not as common as others, many DEXs have issued their own tokens to facilitate their transition to community-operated exchanges. For example, Uniswap’s $UNI.

What is Uniswap? What makes it a top project in the crypto market? Please refer to the article “What is Uniswap.”

Others

In addition to fee discounts and voting rights mentioned above, platform token holders may receive other rewards or rights under certain circumstances. For example, holders who possess a certain amount of platform tokens during a specific period may be offered participation opportunities in the project’s IEO. **$COOKIE **$SAPIEN **$FROGGIE **

UNI-3.27%

COOKIE-2.14%

SAPIEN0.98%

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