Dear valued customer,

We are going to update the OKB Happy Friday Bonus distribution rules starting NEXT Friday (May 11th) in order to reward our loyal supporters. The OKBOSS who hold our global utility token OKB in their account for a longer period of time will be rewarded with a larger bonus. The updated details are as follows:

- The total distribution amount of the bonus stays the same, while a new factor is added to the current distribution calculations - the holding period of OKB. A longer time one holds OKB, the larger bonus one would get through Happy Friday program. Distribution time remains the same: 19:00 Friday (Hong Kong time).

- The OKB snapshots will be taken across all accounts from 18:00 to 18:10 daily (Hong Kong time) starting from May 5th.

- Bonus ratio will be calculated every Friday. Bonus ratio = (one’s accumulated Valid OKB Holding Amount in current distribution period) / (All OKBOSSes’ accumulated Valid OKB Holding Amount in current distribution period)

- What is Valid OKB Holding Amount (VOHA):

- Holding amount less than 100 OKB in a snapshot will be regarded as holding 0 OKB so as to allow faster process.
- One distribution period is 7 days, starting from the last Saturday to this Friday of bonus distribution
- The VOHA of the bonus distribution Friday equals the Friday’s snapshot amount
- Calculations of VOHA for the previous 6 days: each day’s VOHA is the smaller VOHA between Day n and Day n+1

*Day **n* *VOHA** = *

*Day n snapshot amount, if Day n snapshot amount < Day n+1 snapshot amount**Day n+1 snapshot amount if Day n+1 snapshot amount < Day n snapshot amount*

- The total supply of OKB is 1 billion, and currently 30% is in circulation while 70% is locked up. The updated formula will only be applied to the OKB in circulation (the 30%), the locked OKB will not be effected.

- The formula of the bonus distribution:

1) Calculate the user’s accumulated Valid OKB Holding Amount in one distribution period (n) by adding up the user's 7 days’ VOHA in one distribution period

2) Calculate All OKBOSSes’ Valid OKB Holding Amount in one distribution period (m) by adding up “n”

3) The bonus ratio of each user, AKA 3., is n/m.

4) The bonus amount that one OKBOSS gets = 50% of the service fees collected by OKEx during the week * 30% * the bonus ratio.

*E.G. User A and User B*

Date |
Snapshot amount (A) |
VOHA (A) |
Snapshot amount (B) |
VOHA (B) |

May 11 |
10000 |
10000 |
10000 |
10000 |

May 10 |
10000 |
10000 |
1000 |
1000 |

May 9 |
8000 |
8000 |
6000 |
1000 |

May 8 |
8000 |
8000 |
8000 |
1000 |

May 7 |
8000 |
8000 |
99 |
0 |

May 6 |
8000 |
8000 |
8000 |
0 |

May 5 |
8000 |
8000 |
8000 |
0 |

For example, in the above chart, the total distribution bonus of the week is 870 BTC, and the accumulated Valid OKB Holding Amount of all OKBOSSes is 1.5 billion (Max 2.1 billion). If user A’s accumulated Valid OKB Holding Amount in current distribution period is 60,000, and User B’s accumulated Valid OKB Holding Amount in current distribution period is 13,000, then:

*The bonus amount A gets = 870 BTC*30%*(60,000/1,500,000,000**)**=0.01044 BTC*

* **The bonus amount B gets = 870 BTC*30%*(13000/1,500,000,000**)**=0.002262 BTC*

If applies the previous formula, A only gets 0.0087 BTC (870 BTC*10,000/100,000,000). Consistently holding OKB can get you larger amount of bonus.

*The Happy Friday program will last for 2 years. OKEx team will consistently improve the distribution rules according to actual operation situation and advices given by OKBOSSes. The total distribution amount of the bonus won’t change.*

* *

Thank you for all the support and we will continue to devote our best efforts to offer excellent service and to fulfill our profound commitment to become the best digital asset exchange.

Regards,

OKEx

May 4, 2018