Updated: Dec 20, 2019
OKB is the global utility token issued by the OK Blockchain foundation. It is a token economy system that is launched and designed by a global-level development team, based on the blockchain technology. OKB is designed to create a OKEx ecosystem connecting prospective digital asset projects to it. This is intended to advance the development of its digital asset industry and the core blockchain technology.
This guide will explain the reason why OKB was created, its creators, the way it works, and the many uses and applications.
What is OKB Designed For?
OKB was created by OKEx as a native cryptocurrency to be used towards paying trading fees, create Dapps, and other functions. It was thought of on the same lines of Binance tokens. It was created specifically for OkChain, even though it is not yet employed in the decentralized exchange. The cryptocurrency has instead been launched on the blockchain, as the Ethereum ERC-20 token.
However, OKEx expects to remove OKB from the Ethereum blockchain, enabling it on decentralized exchanges (DEX hosted), on the proprietary blockchain itself.
Who Is the Team Behind OKB?
OKEx launched OKB as a platform token in 2018, with 10 trading pairs. The total available supply of OKB tokens at the launch stage was 1 billion, with a distribution model that programmed it to allocate 60% of the total supply, for marketing campaigns and community building.
OKEx is the second most popular cryptocurrency exchange by trading volume. This Malaysia-based exchange was originally started in China, under the name OKCoin. The team is headed by CRO Tim Byun, COO Andy Cheung, and Director Lennix Lai. The exchange is amazingly successful as they report a daily trade of $1.5 billion worth of BTC futures.
How Does OKB Work?
There is a total supply of a billion OKB tokens with 300 million in circulation, and the other 700 million kept in lockdown until 2022. These 700 million tokens shall be allocated to early investors, founding team, OK Blockchain foundation, and awarded as community rewards.
OKB works like any other utility token. It employs the same principles of Binance Coin (BNB), where 50 percent of the service fee earnings from crypto trades are distributed among OKB holders. This is done in proportion to the individual balances held by these users.
There is over $100 million worth of OKB traded daily. Some of the major trading pairs include BTC, ETH, and USDT. Besides OKEx, some other significant crypto exchanges host OKB, such as Coinall, BKEx, BitMax, and DragonEX.
Presently, OKB can be stored in any ERC20-compatible cryptocurrency wallet. This includes Trust Wallet, MyEtherWallet, and other hardware wallets from Trezor, Leder, and Archos. However, OKEx has its wallet as well to store OKB tokens.
What are Current and Future Applications of OKB?
OKB has already been applied to the OKEx global ecosystem, which includes OKB Trading Market, Happy Friday, Listing Vote, OKNodes, OKETT, Prime Investors, Global Partners, and Designated Merchants. These projects intend to ensure that OKB remains a strong cryptocurrency until its final launch in the OKChain.
Currently, OKChain is going through the final development rigors and the testnet results are expected to come in soon, as per the OKChain roadmap.
However, earlier this year, 300 million OKB was put onto the ERC-20 blockchain where it can be used by participants. Once OKChain is complete and becomes stable, it is expected that OKB shall be migrated from the present ERC-20 network to the upcoming OKChain main net.
When this happens, OKB shall be used as the native token of OKChain network to settle transaction fees and for developing Dapps (decentralized applications) on the OKChain network, among various other similar functions.
OKEx is all set to partner with Binance in the funding and incubating of blockchain-based startups, and to develop projects through its OK Jumpstart and OKNodes programs.
The exchange is also after securing a partnership with full-stack crypto trading and risk management platforms, like Caspian.
OKB’s market continues to expand and the crypto coin's performance is much appreciated in the market. It has already become an impressive tool for trading. OKB can be used for numerous other functions as well, such as the ability to invest in projects incubated by OKEx or for trading on OKEx among others. It also awards the holder voting rights.
Even though OKEx is not accessible to US customers in 2019, it is still one of the larger cryptocurrency exchanges of the world. It manages a large daily trading value, where OKB plays an integral role. The team behind OKB has aggressive expansion plans lined up for the future to ensure that the cryptocurrency continues to remain profitable.