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Initial Trade & Earn Program
Note: For Epoch 8 (starting today), the T&E program will undergo a one-epoch experiment where the rewards formula will be based on taker volume rather than fees paid. Over the course of the epoch, we will observe the market dynamics, the change in flow, and also engage a new partner to support our longer term incentive design.
All Bluefin Exchange traders are eligible for the Trade & Earn program. The existing Trade and Earn program has been renamed the Initial Trade & Earn Program. Key parameters include:
- Updated Epoch Length - Starting with Epoch 5, we will be updating the epoch length of this program from 21 days to
28 days(4 weeks) to align with our liquidity provider program.
- Program Duration - The Initial Trade & Earn Program is planned to continue for 10 months from Launch.
- Rewards Allocation - Bluefin has set aside
6.00%of total BLUE token supply for all Initial Reward Programs that incentivize trading and community engagement prior to the BLUE token launch. The existing Initial Trade and Earn Program will be funded through this allocation. As part of the increased epoch duration, rewards per epoch will be proportionally increased from 2,298,850 BLUE to
- Post Program Completion - We will work with our community and partners to launch a long-term sustainable program after the end of the Initial Trade & Earn Program.
- Subject to Adjustments - The parameters and design of the Bluefin rewards program may be updated with feedback from the community and partners. We will use the Initial Trade & Earn Program to inform the long-term sustainable rewards program. Any previously earned rewards will not be impacted.
*The first 4 epochs were 21 days long, while epochs 5 and onward are 28 days long.
**The first 4 epochs had 2,298,850 BLUE in rewards available per epoch
As mentioned above, for Epoch 8 (starting today), the T&E program will undergo a one-epoch experiment where the rewards formula will be based on taker volume rather than fees paid.
The rewards from the TRP will be distributed to traders each epoch according to the following formula:
and where, for each epoch,
On a given chain (Arbitrum or Sui), rewards will be based on your fees paid on that chain vs. total exchange fees on both chains. There is one pool of rewards for both Bluefin on Arbitrum and Bluefin v2 on Sui . Rewards will be based on fees paid on a given network, and there is one pool of rewards for both deployments. For example:
- A wallet that you have connected to Bluefin on Arbitrum will earn rewards based on Fees Paid on Bluefin on Arbitrum / Total Fees Collected on Bluefin (between both Sui and Arbitrum)
- A wallet that you have connected to Bluefin v2 on Sui will earn rewards based on Fees Paid on Bluefin v2 on Sui / Total Fees Collected on Bluefin (between both Sui and Arbitrum)
As part of your Bluefin Account you have access to a detailed and personalized rewards dashboard where you can see details of your previous earnings, as well as estimates of earnings in the current epoch.
All distributions of BLUE follow the same emissions process described below. If you wish to claim your rewards immediately after a cooldown period, you will only be able to claim 50% of earned rewards, with the remainder sent to the protocol treasury. If you wish to claim 100% of your rewards, you will be able to do so one epoch after the epoch in which those rewards were earned. Failure to claim any rewards after this time will result in all of the rewards being sent to the protocol treasury.
All BLUE rewards points earned in the Initial Rewards programs will convert to BLUE tokens 1:1 at token launch and vest over 2 epochs as described in the image above. The vesting process encourages and rewards stakeholders who believe in the long term success of the Bluefin ecosystem and protocol, as well as helping to fund the long term treasury of the protocol.
An example of the value of BLUE rewards upon Token Generation Event at different valuations:
Bluefin uses a number of methods to identify potential wash trading, including analyzing suspicious trading behavior. Any two accounts that have most of their volume directly trading against one another will be flagged as wash traders. Bluefin will manually inspect these accounts to ensure that they are intentionally wash trading.
Once a trader, or multiple traders, have successfully been identified as conducting restricted trading activity, they will be prohibited from earning rewards on volume during that epoch. Not only is intentional wash trading illegal in most jurisdictions, it’s unfair to others who are also earning rewards through the Trade and Earn program.