COPX: "Meituan" to build the global financial brokerage commission market

Author: momo, ChainCatcher

Commission incentives are one of the most common incentives in the financial industry. For example, in the crypto field, exchanges incentivize promoters to invite users to register for transactions through commissions. In the traditional financial field, the insurance industry uses premium commissions to incentivize its insurance agents to promote signing of contracts.

However, the global financial brokerage commission market also has obvious pain points, facing structural problems such as low promoter efficiency, high user churn rate and fragmented product channels.

For promoters, when facing different financial products, they all need to apply for qualifications separately, which has high management costs, and because the users they promote often do not have effective incentives and retention methods, resulting in high user churn rate.

In addition, the commission system in various fields such as crypto financial products, insurance, and foreign exchange is isolated, forming a vicious cycle of single promoter returns and limited user choices.

Aiming at the general pain points of this huge financial brokerage commission market, COPX has created a "Meituan-style" aggregation platform for the financial commission market, committed to reshaping the distribution chain through the tokenized rebate reconstruction mechanism , improving promotion efficiency, and converting transaction costs into user benefits, becoming a commission aggregation platform connecting encryption and traditional finance.

**How does COPX reshape the global financial brokerage commission

market?**

The core of COPX 's model lies in two points: one is to aggregate the financial brokerage commission market, and the other is tokenized commission refund mechanism .

Taking the exchange's commission promotion mechanism as an example, a promoter usually promotes 3-5 exchanges. In the past, he had to apply for promotion qualifications separately from these 3-5 exchanges to obtain promotion and commission qualifications.

The COPX platform is connected to many mainstream exchanges. Promoters only need to register one COPX platform to directly promote all the connected exchanges. The exchange can also connect more promoters more conveniently.

COPX allows financial platforms and promoters such as exchanges to improve efficiency through the "Meituan-style" aggregation method.

For users invited to register, the tokenized commission refund mechanism allows them as a trader/consumer to enjoy a certain proportion of fee refunds, thereby reducing transaction costs. Similar to consumers who order food on Meituan, they can enjoy some discounts or voucher discounts.

Past exchange promoters may verbally promise to return some commission ratios to incentivize users to use its invitation link to register for transactions. But how much you can get in the end depends entirely on the credibility of the promoters.

Under the COPX tokenized rebate mechanism, the transaction fee is converted into COPX tokens in proportion and is released regularly every day.

For example, for users, after spending a 100U transaction fee through transactions, they may obtain a COPX token worth 60U, and the actual cost will be reduced to 40U. Even if the token price is low, the COPX token obtained may be only 20U, which will reduce the net cost by 20%; if the token price is high, the transaction cost of the user can become profit.

For promoters, the platform charges 80% commission, and promoters can receive 60% commission and additional community rewards.

In general, through the COPX platform, financial platforms, promoters and users may achieve a win-win situation. Users can achieve risk hedging. Even if the transaction is incurred, the token rebate can cover a certain proportion of the handling fee cost and reduce the loss rate of liquidation. When user costs are hedged by token returns, incentive users are also more willing to trade at high frequency on financial platforms.

For promoters, it does not require cross-platform management, but only receives commissions in multiple fields through COPX platform, and its efficiency has also been improved.

At present, the COPX ecosystem has expanded crypto finance and the traditional finance field.

In terms of crypto finance, COPX connects to Binance, OKX, CoinUp.io, XT, MEXC, Bitget, Gate.io, BingX **** In terms of traditional finance, COPX has connected to more than 120 Hong Kong insurance products and plans to connect to financial institutions in the U.S. stocks, foreign exchange and other fields in the future.

On the user side, the COPX platform has more than 80,000 registered users, and the daily transaction volume exceeds US$100 million. ️

In terms of expanding ecological partners, COPX has joined the Hong Kong Web3 Club, which gathers high-quality KOLs and project parties. Through this club, it plans to connect more KOLs as promoters and products with commission mechanisms, thereby attracting larger users.

COPX token economic model and DAO governance mechanism

COPX Ecological Token. As an important incentive token for platform promoters and users, how can the platform ensure long-term value?

According to the official COPX white paper, COPX has a total of 1 billion tokens, and the allocation is as follows:

• Transaction mining (70%, 700 million): used to allocate to transaction users on the platform, and will be released daily from March 12, 2024, with a release period of 11 years. 36,000 were released on the first day, 150 were linearly increased by 150 in the first year, and 125 were linearly increased by the second year. Currently, about 97,000 tokens will be released every day.
• Private equity (10%, 100 million): Linear release within two years, unlocked in equal amounts every month.
• Teams and communities (20%, 200 million): Linear release within four years, used for platform operations, ecological activities and currency listing fees. These tokens will be released within four years, with 50 million pieces released each year, and will also be released in equal amounts per month.

Under such token economic model, how does COPX empower tokens? The more important things are the transaction mining mechanism and the repurchase and destruction mechanism.

In the transaction mining part, the number of tokens that users receive per day is positively correlated with their commission contribution. For example, if the platform's total daily commission is 10,000 U and 100,000 tokens are released, 10 tokens can be exchanged for every 1U of the commission. Users can increase the token acquisition ratio through high-frequency trading or large-value trading.

Under the repurchase and destruction mechanism, 28% of the platform's total commission is used to automatically repurchase and destroy tokens from the secondary market every day.

When there are fewer users on the platform, such as only one person generates a 1U commission, he may receive a large number of tokens, but the platform uses less funds for repurchase, and the token value will be lower.

When there are many users on the platform, for example, 10,000 people generate a 1U commission per person and the platform receives a 10,000 U commission, and each person receives a relatively small number of tokens. At the same time, the platform has 2,800 U for repurchasing tokens, the value of this era coins will increase.

Overall, the value of COPX tokens is not to raise prices through the traditional model of direct issuance and sale, but is released through the value generated by user transactions, which is equivalent to indirectly using commissions to grant token value, and this value depends on the platform's traffic. The greater the traffic on the platform, the more traders it receives, the higher the commission the platform receives, the greater the buying orders used for repurchases, and the token price will naturally rise.

According to COPX, the platform will launch AI quantitative transactions soon, and users can make robots automatically trade through strategies, and the platform will charge a certain subscription fee, etc. In the future, the subscription fees and other fees received by all ecosystems on the platform will be used to destroy tokens, further create a deflation effect, and increase the value of tokens.

In order to improve community governance efficiency, governance transparency and fairness, the COPX community has also initiated COPX DAO. COPX DAO implements governance rules through smart contracts.

COPX adopts a new governance mechanism to build the traditional company 's partner management mechanism into a DAO , but through a decentralized organizational form, the company's shares are transparent to avoid the possibility of fraud, and mutual governance between partners, founders and shareholders is achieved.

Currently, COPX has 25,000 shares, corresponding to 25,000 governance tokens. You can get 1 share if you pledge 10,000 COPX tokens, that is, you can get 1 governance token.

Whether it is a partner, founder or shareholder, they need to pledge tokens to obtain equity in the company and participate in the governance of the company. Any user or participant who contributes to the community is eligible to become a partner.

The governance token is only bound to the designated wallet address of the partner (equivalent to shareholders) and cannot be transferred to other addresses. Therefore, it cannot be circulated and is only used for voting decisions and related benefit sharing.

Partners enjoy the voting rights of community governance and the minting rights of governance tokens according to the weight of the tokens they hold, and can also enjoy the profits, commission profits and other income of all AI products in the future; and submit proposals and participate in the voting in COPX DAO, and the pass ratio is 75% of the governance tokens corresponding to the circulating COPX tokens.

**From pledge interest generation to AI-assisted transactions, how does

COPX activate the ecosystem?**

In order to activate the COPX ecosystem, COPX is attracting users through some DeFi incentives and AI-enabled transactions.

In terms of the DeFi sector , COPX can participate in staking mining, LP mining and ecological derivative coin incentives.

For example, under the pledge mining mechanism, users only need to deposit tokens to the platform, and the deposit period includes current terms, 7 days, 30 days, 90 days and 180 days. Interest will be paid in the form of a currency standard every day. The source of interest is the part of the commissions received by the platform every day for repurchase.

LP mining is easy to understand. Users can stake USDT and COPX tokens in PancakeV2 pool to add liquidity to earn profits. In terms of ecological derivatives, COPX cooperates with ecological partners such as exchanges to allow users to spend a handling fee to mine double tokens to increase profits.

In addition to incentives such as pledge and interest generation, COPX is also focusing on promoting AI-enabled trading sectors.

At present, COPX has launched a prediction tool that provides a variety of AI signals to prompt users every day for buying or selling, including predicting the probability of rising and falling coin prices, etc., to help users make trading decisions, make trading simpler, and minimize losses.

COPX is expected to launch a new automatic trading tool in the near future to help users trade intelligently.

Unlike traditional quantitative trading, which uses quantitative robots to follow orders, COPX's automatic trading tool is more like a strategy supermarket. It builds a big data source model and uses neural networks to combine all factors in the entire market (such as market sentiment factors, news factors, giant whale chain changes, exchange real-time data, etc.) to generate new quantitative strategies.

It allows users to select certain factors and set relevant indicators (such as buying amount, retracement range, etc.) based on their own understanding of coins and their understanding of factors to generate personalized strategies. The robot will grab data in the market and conduct quantitative transactions based on the strategies set by the user.

According to COPX, the future user trading scenario will be very simple, just check the robot without keeping a close eye on the K-line. COPX will also show strategy rankings like horse racing, and users can choose the following strategies based on the ranking.

AI empowers user transactions, which can achieve a win-win situation for users and COPX platforms. The former transactions are more convenient, with more profit monetization, and the platform also has more sources of handling fees.

COPX’s ambitions, from crypto to global financial commission markets

From the crypto financial brokerage commission market to the traditional financial brokerage commission market, COPX has also demonstrated its expansion ambitions.

According to COPX's roadmap, there are two types of expansion directions for the traditional financial brokerage commission market. First, financial products such as foreign exchange, futures, precious metals, and stocks, and second, financial products such as funds, insurance, and trusts.

If the crypto financial brokerage commission market is a potential incremental market, then the stock market of the traditional financial brokerage commission market is huge in scale and has deeper pain points. In the insurance market alone, according to the Allianz Global Insurance Report, the global insurance industry's premium income will reach US$6.5 trillion in 2023, and the commission ratio is calculated at the lowest 2%. The global insurance commission market size is also a market of US$100 billion.

By aggregating the global commission market and tokenized commission rebate mechanism, COPX attempts to solve the fragmentation of the commission market for financial products and reconstruct the value distribution chain of "user-promoter-platform".

If COPX can overcome stress tests such as global regulatory compliance, user habits, and token economy, COPX is expected to become the first commission distribution infrastructure connecting encryption and traditional finance, redefining the efficiency and fairness of the financial market.