Binance Alpha Trading Competition: A New Way for Projects to Distribute Tokens

There are many ways to distribute tokens, and being a retail investor is quite tough.

If you do the math, it becomes very clear. Taking Merl as an example, the rewards for Merl's Alpha trading competition amount to 9.84 million, which, based on the current token price of $0.11, translates to a distribution of approximately $1 million.

So what does the project gain? It's the transaction fees. Since most of the liquidity pool is provided by the project, the transaction fees are primarily collected by the project. Now, let's calculate how much transaction fee Merl can earn.

One way to calculate this is by looking at the pool fees on Cake. The screenshot shows the Merl-USDC pool, which has a daily fee of $53,000, plus the Merl-WBNB pool, which has a daily fee of $60,000. The event lasts for a total of 14 days, so the total earnings would also be $1 million.

(You can also calculate a similar result from the APR of Binance Alpha Wealth Management.)

Therefore, with your smart little brain, you immediately realize that the trading competition is essentially the project distributing $1 million worth of Merl tokens while earning $1 million in transaction fees.

I calculated a few other tokens from different trading competitions, and they all have similar situations.

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