Bluefin Exchange to Launch Governance Token in July

Decentralized orderbook exchange Bluefin is set to introduce its governance token in July after successfully raising a total of $17 million in funding since its establishment in 2020. The platform, which enables users to engage in crypto perpetual swaps on the Sui network, recently secured an undisclosed investment from trading giant Flow Traders prior to the token’s unveiling. Bluefin has disclosed that the funds will be utilized to diversify beyond perpetual trading and establish a decentralized financial ecosystem, as stated in a release to CoinDesk.

Bluefin, recognized as a prominent derivatives exchange on the Sui network, has attained a market share exceeding 70% with its perpetual trading offering. The forthcoming governance token, BLUE, is projected to facilitate decentralized decision-making processes while rewarding users and contributors. Co-founder of Bluefin, Zabi Mohebzada, expressed, “Our vision is to accelerate the adoption of decentralized finance by introducing a sustainable, robust, and user-friendly exchange to the market.”

Decentralized exchanges, or DEXs, gained traction during the crypto winter subsequent to the significant collapse of certain large centralized platforms (CEXs) like FTX. DEXs operate autonomously, utilizing automated algorithms to facilitate the trading of digital assets among users without human intervention.

Perpetual swaps, a distinct feature within the crypto realm, represent financial instruments that essentially function as perpetual futures contracts without a specific expiration date.

The BLUE token is expected to have a maximum supply of 1 billion, with an initial circulating supply of 116 million, based on a tokenomics document reviewed by CoinDesk. Investors and the Bluefin team will be subject to a three-year vesting period with a lockup set to expire one year after the initial launch scheduled for the upcoming month. Additionally, 32.5% of the token allocation is designated for user incentives, encompassing airdrops, trading rewards, liquidity provisions, and future growth strategies, according to the document.

The exchange is also gearing up to introduce an aggregator for trading spot digital assets, along with “Bluefin Pro,” which will deliver cross-margin trading capabilities and expedited order executions.

Bluefin has raised capital from prominent hedge funds such as Brevan Howard Digital, Tower Research, Cumberland DRW, and Susquehanna International Group. The exchange has reported a trading volume exceeding $25 billion thus far this year, with monthly revenues surpassing $1 million.