REX1: Bitcoin’s first loyalty reward token?

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REX1 is the bitcoin-backed loyalty reward token airdropped to RelayX decentralized exchange (REX) users. It is one of the first loyalty reward programs that is backed by Bitcoin.

REX1 has a total supply of 800,000, and REX1 tokens are redeemable against a pool of BSV (pool address: 1JfwtAeYcv35GJCp7rvfnBBAwmYbQVzNt3). The pool is funded by 50% of RelayX Exchange trading fee income–RelayX currently charges 0.3% fees for taker trades–that has been raked in since the launch of the REX and that will end 20,160 blocks after the launch of the REX (roughly 20 weeks total).

Functionality to redeem REX1 for BSV is not available yet, but I imagine it to be as simple as clicking a ‘Redeem’ button.

— Bitcoin Intern (@1bitcoinintern) March 22, 2021

Although it is not possible to redeem your REX1 at the moment, REX1 will be redeemable for BSV in the future. To calculate how much BSV you will receive by redeeming your REX1, you divide the amount of REX1 you are redeeming by the amount of REX1 outstanding.

The REX1 airdrop

“A total of 550,000 REX1 will be airdropped to takers – traders who pay fees during the 20,160 blocks post-RelayX Exchange launch. Every 2016 blocks (~2 weeks) will be an airdrop of 100,000 REX1 – 90000 – 80 – 70 – 60 – 50 – 40 – 30 – 20 – 10 to traders pro-rata based on fees paid to RelayX,” said RelayX in their blog post that announced REX1.

“A total of 250,000 REX1 will be airdropped to RelayX wallet users who have supported us for the past two years. The 250K REX1 will be distributed as follows: 25% to those who registered a Relay wallet in 2019, 25% to those in 2020 and 2021 with a cutoff date of March 11, 2021. Only those who have made a minimum of 3 transactions qualify. An additional 50% of tokens granted to the top 10% of users by transactions made equally.”

The previously mentioned distribution has already taken place, but there is still time to trade on REX and be one of the users that receive REX1 tokens from one of the subsequent 2016 block airdrops.

After the 20,160 block period (the duration in which REX1 will be airdropped and the pool collects funds) comes to an end, REX1 holders will have, “an additional 10,080 blocks to redeem REX1 for the BSV in the reward pool. Any remaining unredeemed BSV after this period will belong to RelayX. REX1 will cease to have any utility or purpose or value after.”

Bitcoin-based loyalty

The REX1 is a first-of-its-kind experiment taking place in BSV, and it was inspired by a 2014 blog post written by RelayX founder Jack Liu, “Bitcoin backed corporate currencies are coming.”

The blog post argues that there is more value in loyalty points backed by Bitcoin than there is in loyalty points backed by only the company issuing them. If you have not read Jack Liu’s blog post on Bitcoin loyalty points, I encourage you to read it.

RelayX, as well as the REX, have been innovating at a rapid pace. The REX is Bitcoin’s first fully decentralized, trustless, non-custodial, peer-to-peer DeFi order book; and shortly after the launch of the REX, RelayX launched an NFT marketplace and released it’s very first NFTs, the RelayX card.

RelayX apparently has much more in the pipeline and has recently hinted at an OTC Desk that is in the works.

Setting up Relay OTC desk right now. https://t.co/rA06ZM1mmw

— Jack 🇪🇸 🇭🇰 🇸🇬 🇨🇦 (@liujackc) March 22, 2021