Loopring Token (LRC) is a token built on Ethereum's ERC-20 standard. LRC Token is a token of the Loopring DEX decentralized exchange that integrates Loopring Protocol. In which, Loopring Protocol is the token conversion protocol. Its role is similar to Kyber Network, Bancor Network, 0x Protocol.
In Loopring Protocol, LRC is the token for Ethereum's token conversion protocol, in addition to LRN (NEO), and LRQ (Qtum).
What is Loopring (LRC) used for?
Similar to 0x Protocol (ZRX) , Loopring Protocol is also a protocol that allows it to be integrated to build Decentralized Exchanges.
In the Loopring Protocol, an entity is required to receive, maintain, and process the receipt of the order books. Taking over this position are relays - or nodes that are responsible for receiving orders from wallets, maintaining order books and transactions and then customizing those orders to other relays.
At this time, another entity is required to calculate and perform these calculations besides the Blockchain (Off-Chain). These people are called Ring-Miners, they are responsible for handling the different sequential Order Rings.
In the above Loopring Protocol, the LRC Token has the following tasks:
Use LRC Token as Fee Model to pay Ring Miners to receive and maintain Order Books. Specifically, when a user creates an order book, an amount of LRC Token will be paid to the Ring-Miners as a fee.
Use LRC Token to participate in decentralized management (Decentralized Governance)
LRC Tokens are burned in LRC Burn Rate. This method will help reduce the amount of LRC Token circulating in the market. The LRC will be included in the LRC Burn Rate. We know that Wallets and Ring-miners will receive LRC with roles in Loopring Protocol as above. Some of it will be burned (Burn) to reduce the total circulation.
The user makes a transaction and has to pay 100BNB as a transaction fee. With LRC Burn Rate = 20%. Wallets and Ring-miners will receive 100 * (1-20%) = 80 BNB. The remaining 20BNB will be converted into LRC Token and then burned.
Refer to the image above to understand more about this method of LCR Burn Rate.
In cases where transaction fees are paid by LRC, this LRC Burn Rate may be lower (refer to the table below).
Program Details: In the Kucoin Bonus program, users own a minimum of 6 KCS Tokens to participate. Kucoin will spend 50% of profits earned from collecting transaction fees to pay users who participate in the Kucoin Bonus program.
For example, Tony holds 10,000 KCS in his account and the average trading volume in the last 30 days of Kucoin exchange is 10,000 BTC per day. The trading fee that the exchange receives is 10,000 * 0.2% = 20 BTC. So Tony will receive a corresponding Bonus of 20 * 50% * (10,000/100,000,000) = 0.001 BTC per day. The amount of BTC from this Kucoin Bonus program will be converted to KCS Token at the price at the time of redemption.
Use Kucoin Share (KCS) to participate in Kucoin Spotlight.Kucoin Spotlight is a token sale platform on the Kucoin exchange. In it, Kucoin Share (KCS) is used as the currency to participate in buying tokens in Spotlight.
LRC Token lock to receive Rebate.
LRC Token Holders who lock their LRC into smartcontract on exchanges will receive a part of Fee Rebate.
1 order has a total fee of 10 BNB. Of which 4 BNB (40%) will be burned. Assume that Fee Payer locks his 1 million LRC Token to get 50% Fee Rebate. So not 4 BNB will be burned, but divided as follows:
50% (2 BNB) will be burned
50% (2BNB) Fee will be received (withheld) instead of having to pay 4 BNB.
Loopring transaction fees (LRC)
Similar to many other Ethereum ERC-20 tokens, when trading or transferring BNT Token, users will be subject to the following fees:
When making withdrawal/deposit of the exchange (eg Binance exchange):
Deposit fee: Free.
Withdrawal Fee: 13 LRC.
Note: Some other exchanges have different Withdrawal/Deposit fees.
When switching between wallets, users will have to pay Ethereum transaction fees.