COPX: Creating the "Meituan" of the global financial brokerage commission market

Author: momo, ChainCatcher

Commission incentives are one of the most common incentive mechanisms in the financial industry. For example, in the cryptocurrency field, exchanges use commission incentives to encourage promoters to invite users to register for trading. In traditional finance, the insurance industry incentivizes its agents to close deals through premium commissions.

However, the global financial brokerage commission market also faces significant pain points, including low promoter efficiency, high user churn rates, and fragmented product channels.

For promoters, dealing with different financial products requires separate qualification applications, leading to high management costs. Additionally, due to the lack of effective incentives and retention methods for the users they promote, the churn rate remains high.

Moreover, the commission systems in various fields such as crypto financial products, insurance, and forex are isolated, creating a vicious cycle where promoter earnings are singular and user choices are limited.

Targeting the common pain points of this vast financial brokerage commission market, COPX has created a "Meituan-style" aggregation platform for the financial commission market, aiming to reshape the distribution chain through a tokenized rebate mechanism to improve promotion efficiency, allowing trading costs to convert into user earnings, and becoming a commission aggregation platform that connects crypto and traditional finance.

How does COPX reshape the global financial brokerage commission market?

The core of COPX's model lies in two points: aggregating the financial brokerage commission market and a tokenized commission rebate mechanism.

Taking the commission promotion mechanism of exchanges as an example, a promoter typically promotes 3-5 exchanges, and previously needed to apply for promotional qualifications separately for each of these exchanges to gain promotion and commission eligibility.

The COPX platform connects multiple mainstream exchanges, allowing promoters to register on just one platform, COPX, to promote all connected exchanges directly. Exchanges can also more conveniently connect with more promoters.

COPX uses a "Meituan-style" aggregation approach to enhance efficiency for financial platforms and promoters.

For users invited to register, the tokenized commission rebate mechanism allows them, as traders/consumers, to enjoy a certain percentage of fee rebates, thereby reducing trading costs. This is similar to consumers enjoying discounts or vouchers when ordering food on Meituan.

In the past, promoters of exchanges might verbally promise to return a certain percentage of commissions to incentivize users to register through their invitation links. However, the actual amount received depended entirely on the promoter's credibility.

Under COPX's tokenized rebate mechanism, trading fees are converted into COPX tokens proportionally, released daily.

For example, if a user incurs a trading fee of 100U, they might receive COPX tokens worth 60U, reducing their actual cost to 40U. Even if the token price is low, the received COPX tokens might only be worth 20U, still lowering the net cost by 20%; if the token price is high, the user's trading cost could turn into profit.

For promoters, the platform takes 80% of the commission, allowing promoters to receive 60% of the commission along with additional community rewards.

Overall, through the COPX platform, financial platforms, promoters, and users can achieve a win-win situation. Users can hedge risks; even if they incur trading losses, the token rebates can cover a certain percentage of the fee costs, reducing liquidation rates. When user costs are offset by token earnings, it incentivizes users to engage in high-frequency trading on financial platforms.

For promoters, they no longer need to manage across platforms and can access commissions from multiple fields through just one COPX platform, enhancing efficiency.

Currently, the COPX ecosystem has expanded into both crypto finance and traditional finance.

In the crypto finance sector, COPX has connected with several mainstream exchanges, including Binance, OKX, CoinUp.io, XT, MEXC, Bitget, Gate.io, and BingX; in traditional finance, COPX has integrated over 120 Hong Kong insurance products and plans to connect with financial institutions in the US stock market, forex, and other areas in the future.

On the user side, the COPX platform has over 80,000 registered users and daily trading volumes exceeding $100 million.

In expanding ecosystem partnerships, COPX has joined a Hong Kong Web3 club that gathers quality KOLs and project parties, planning to connect more KOLs as promoters with commission mechanism products, thereby attracting a larger user base.

COPX Token Economic Model and DAO Governance Mechanism

The COPX ecosystem token, COPX, serves as an important incentive token for platform promoters and users. How does the platform ensure its long-term value?

According to COPX's official white paper, there is a total of 1 billion COPX tokens, distributed as follows:

• Trading Mining (70%, 700 million tokens): Allocated to trading users on the platform, released daily starting from March 12, 2024, over a period of 11 years. The first day releases 36,000 tokens, with a linear daily increase of 150 tokens in the first year and 125 tokens in the second year. Currently, about 97,000 tokens are released daily.
• Private Placement (10%, 100 million tokens): Released linearly over two years, with equal monthly unlocks.
• Team and Community (20%, 200 million tokens): Released linearly over four years for platform operations, ecosystem activities, and listing fees. These tokens will be fully released within four years, with 50 million tokens released each year, also in equal monthly releases.

In this token economic model, how does COPX empower its tokens? The key lies in the trading mining mechanism and the buyback and burn mechanism.

In the trading mining part, the number of tokens distributed to users daily is positively correlated with their commission contributions. For example, if the platform's total commission for a day is 10,000U and 100,000 tokens are released, then each 1U commission can be exchanged for 10 tokens. Users can increase their token acquisition ratio through high-frequency or large-volume trading.

Under the buyback and burn mechanism, 28% of the platform's total commission is used daily to automatically buy back and burn tokens from the secondary market.

When there are fewer users on the platform, for instance, if only one person generates 1U commission, they might receive a large number of tokens, but the funds available for buyback are limited, resulting in a lower token value.

Conversely, when there are many users on the platform, for example, if 10,000 people each generate 1U commission, the platform receives 10,000U in commission, and the number of tokens distributed to each person is relatively small. However, the platform has 2,800U available for token buybacks, which would increase the token's value.

Overall, the value of COPX tokens is not driven by traditional direct issuance and sales to inflate prices, but rather released through the value generated by user trading, effectively indirectly utilizing commissions to endow tokens with value, which in turn depends on the platform's traffic. The greater the platform's traffic, the more traders there are, the higher the commissions received by the platform, and the larger the buyback demand, naturally leading to an increase in token prices.

COPX has revealed that it will soon launch AI quantitative trading, allowing users to employ strategies for automated trading by robots, with the platform charging a subscription fee. In the future, all subscription fees and other revenues received by the platform's ecosystem will be used to burn tokens, further creating a deflationary effect and enhancing token value.

To improve community governance efficiency, 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, transforming the traditional partnership management model of companies into a DAO, while using a decentralized organizational format to make company shares transparent, thereby avoiding the possibility of fraud and achieving mutual governance among partners, founders, and shareholders.

Currently, COPX has a total of 25,000 shares, corresponding to 25,000 governance tokens. Staking 10,000 COPX tokens grants 1 share, which equals 1 governance token.

Whether partners, founders, or shareholders, all need to stake tokens to obtain company equity and participate in governance. Any user or participant contributing to the community is eligible to become a partner.

This governance token is bound only to the designated wallet addresses of partners (equivalent to shareholders) and cannot be transferred to other addresses, thus it cannot circulate and is used solely for voting decisions and related profit sharing.

Partners enjoy voting rights in community governance and the right to mint governance tokens based on the weight of their held tokens. They can also benefit from future profits from all AI products, commission earnings, and participate in COPX DAO by submitting proposals and voting, with a passing ratio of 75% based on the circulating COPX tokens corresponding to governance tokens.

From Staking for Yield to AI-Assisted Trading, How Does COPX Activate Its Ecosystem?

To activate the COPX ecosystem, COPX is attracting users through various DeFi incentives and AI-enabled trading.

In the DeFi sector, COPX allows participation in staking mining, LP mining, and ecosystem derivative coin incentives.

For instance, under the staking mining mechanism, users only need to deposit tokens into the platform, with deposit terms including flexible, 7 days, 30 days, 90 days, and 180 days. They will receive interest in the form of the deposited currency daily. The source of the interest comes from the portion of commissions the platform receives daily that is used for buybacks.

LP mining is straightforward; users can stake USDT and COPX tokens in the PancakeV2 pool to add liquidity and earn returns. Regarding ecosystem derivative coins, COPX collaborates with exchanges and other ecosystem partners, allowing users to mine double the tokens for the same transaction fee to increase earnings.

In addition to staking yields and other incentives, COPX is also focusing on promoting AI-enabled trading.

Currently, COPX has launched prediction tools that provide various AI signals, alerting users daily on when to buy or sell, including predicting the probability of price fluctuations, assisting users in making trading decisions and simplifying trading to minimize losses.

COPX is expected to launch new automated trading tools soon to help users trade intelligently.

Unlike traditional quantitative trading that uses quantitative robots for following trades, COPX's automated trading tools resemble a strategy supermarket, building a big data source model that employs neural networks combined with all market factors (such as market sentiment factors, news factors, whale on-chain movements, real-time exchange data, etc.) to generate new quantitative strategies.

It allows users to choose certain factors and set relevant indicators (such as purchase amount, drawdown limits, etc.) based on their understanding of the coins and factors, generating personalized strategies. The robot will capture market data and conduct quantitative trading based on the strategies set by users.

According to COPX, in the future, user trading scenarios will be very simple; they will only need to check the robot without having to closely monitor candlestick charts. COPX will also display strategy rankings like horse racing, allowing users to choose strategies to follow based on the rankings.

AI-enabled trading benefits both users and the COPX platform, as users find trading more convenient with more profit realization, while the platform gains more sources of trading fees.

COPX's Ambition: From Crypto to the Global Financial Commission Market

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

According to COPX's roadmap, there are two expansion directions for the traditional financial brokerage commission market. One is trading financial products such as forex, futures, precious metals, and stocks, and the other is product-type financial products such as funds, insurance, and trusts.

If the crypto financial brokerage commission market is a potential incremental market, then the traditional financial brokerage commission market, being a stock market, is vast and has deeper pain points. In the insurance market alone, according to Allianz's Global Insurance Report, global insurance premium income reached $6.5 trillion in 2023, and with a minimum commission rate of 2%, the global insurance commission market size is also a multi-billion dollar market.

By aggregating the global commission market and utilizing a tokenized rebate mechanism, COPX aims to address the fragmentation of the financial product commission market and reconstruct the value distribution chain of "users-promoters-platform."

If COPX can overcome global regulatory compliance, user habits, and token economy pressure tests, it is expected to become the first commission distribution infrastructure connecting crypto and traditional finance, redefining the efficiency and fairness of financial markets.