In 2019, the Bitpanda Ecosystem Token (BEST) was first introduced to the people by Bitpanda in an IEO (Initial Exchange Offering). Since then, the platform and the token have developed a lot. Rewards came in May 2020, you can now trade over 800 stocks and ETFs on Bitpanda from 1 euro 24/7 and Pantos has already successfully performed its first cross chain transaction – to name just a few of the innovations. On December 13th, 2021, Bitpanda announced BEST 2.0, which will change a few essential facts about the token. The aim of this blog post is to present and explain the essential differences between BEST 1.0 and BEST 2.0.
How do the new VIP levels look like?
With BEST 2.0 there are also introduced new VIP levels. Previously there were 3 and now there are 5. Also, the thresholds have been changed. A table with the minimum requirements for each level is shown below.
|BEST VIP LVL||BEST 1.0||BEST 2.0|
|LVL 1||min. 5,000 BEST||min. 10 BEST|
|LVL 2||min. 50,000 BEST||min. 1,000 BEST|
|LVL 3||min. 500,000 BEST||min. 5,000 BEST|
|LVL 4||–||min. 10,000 BEST|
|LVL 5||–||min. 50,000 BEST|
Even at first glance, it can be seen that entry has been made much easier and the threshold value of the last VIP Level 5 is now only a tenth of the previous VIP LVL 3.
What will happen to the BEST rewards with BEST 2.0?
In a nutshell, the following things will change for BEST rewards:
- You have to hold at least 10 BEST
- The rewards must now be claimed weekly instead of monthly (initially there is a hybrid phase, in which the rewards are paid out monthly based on the new levels until an announcement in Q1 2022)
- The trading volume for calculating the rewards (reference trading volume) is changed, and a distinction is made between stocks and crypto / metals
- Instead of a maximum of 12.68%, up to 15.35% rewards are now possible
All points are listed in more detail below.
Minimum quantity of BEST is necessary
One basic requirement has changed. In order to benefit from the BEST rewards, you have to be at least VIP LVL 1 with BEST 2.0, i.e. you have to hold at least 10 BEST in your Bitpanda Broker Account. Previously, you had already received rewards as soon as you had BEST in your account.
BEST Rewards are now paid weekly instead of monthly
The frequency of the BEST rewards will also change – from once a month to once a week. This means for all BEST rewards collectors, that after the introduction of the weekly rewards (Q1 2022), rewards have to be claimed once a week and at least €1 has to be traded each week.
Transition phase up to the weekly rewards
Attention!: Until the weekly rewards are announced, there is a ‘hybrid’ system of new VIP levels and monthly rewards. These are made up of basic rewards and trading volume bonus rewards:
Monthly Base Rewards
|BEST VIP LEVEL||Monthly Base Rewards|
|– (< 10 BEST)||0.5% per month|
|1 (>= 10 BEST)||0.5% per month|
|2 (>= 1,000 BEST)||0.5% per month|
|3 (>= 5,000 BEST)||0.55% per month|
|4 (>= 10,000 BEST)||0.60% per month|
|5 (>= 50,000 BEST)||0.65% per month|
Monthly Trading Volume Bonus Rewards
|Volume||Monthly Bonus Rewards|
|>= 1,000 €||+0.05% per month|
|>= 5,000 €||+0.15% per month|
|>= 10,000 €||+0.25% per month|
|>= 50,000 €||+0.35% per month|
Change Reference Trading Volume Thresholds & Difference Between Stocks and Crypto
The thresholds for the bonus percentages for a certain trading volume have also changed, and a distinction is also made between stocks and crypto / metals volumes. These volumes cannot be combined. This means that the higher achieved bonus percentage is taken from the volume of crypto / metals and stocks.
An example to illustrate this: Assume you have reached 3,000 € volume in Crypto and 30,000 € volume by trading stocks in one week. Due to the volume achieved, you would now get 0.050% bonus percentage and not the combined 0.075%.
The maximum reward percentage has been increased
After the announcement of the weekly rewards, it is possible to receive up to 15.35% of BEST in the form of rewards per year, instead of the 12.68% that existed in the previous system. These rewards are calculated weekly as follows:
- Basis – 0.1%
- VIP LVL Bonus – up to 0.1%
- Trading Volume Bonus – up to 0.075%
So it is possible to get up to 0.275% of rewards per week. The VIP LVL and trading volume bonuses are explained in more detail below.
VIP Level Rewards Bonus
In addition to the basic rewards, you also get more % rewards by reaching certain VIP levels.
|BEST VIP Level||VIP Level Bonus %|
Trading Voume Bonus
As well as with BEST 1.0, it is possible to get more % of rewards through a certain trading volume with BEST 2.0. It is important here that a distinction is made between crypto / metals and stocks volume and that the higher value is taken as a bonus, and no combination is possible.
|0.010%||>= 1,000 € Volume||>= 3,000 € Volume|
|0.025%||>= 3,000 € Volume||>= 10,000 € Volume|
|0.050%||>= 10,000 € Volume||>= 30,000 € Volume|
|0.075%||>= 30,000 € Volume||>= 100,000 € Volume|
Instant Trade Bonus (ITB) is the new BFC (BEST Fee Collection)
Until now, it was possible to pay the fees of every trade with BEST. By using BEST for fees, it was possible to save 20% (2021) in fees. This feature will be replaced with the introduction of BEST 2.0 by the Instant Trade Bonus (ITB). Depending on the VIP level and the traded asset, as well as the traded volume, you get back part of the volume in BEST. As a VIP Level 5 it is possible to get back up to 0.25% of the traded volume in BEST.
Assuming you buy BTC worth 1000 €, you will receive 2.5 € as BEST VIP Level 5 as Instant Trade Bonus. If you buy a stock worth € 1000, that will result in € 0.25 as Instant Trade Bonus as VIP Level 5, which you get back immediately in BEST.
|BEST VIP Level||ITB Crypto/Metals||ITB Bitpanda Stocks|
How BEST 2.0 will change the Bitpanda Card?
By changing the VIP level, the advantages of the Bitpanda Card also change depending on the reached VIP level. This means that BEST 1.0 VIP 2 members already receive the BTC cashback of 2%. Below is a table with the respective advantages and fees:
|BEST VIP Level||Advantages of the Bitpanda Card|
|– (< 10 BEST)||– 2.50% Exchange Fee|
|1 (>= 10 BEST)||– 2.50% Exchange Fee|
|2 (>= 1,000 BEST)||– 2.50% Exchange Fee|
|3 (>= 5,000 BEST)||– 1.75% Exchange Fee|
– 1 free ATM withdrawal
– 0.50% BTC – Cashback
|4 (>= 10,000 BEST)||– 1.00% Exchange Fee|
– 5 free ATM withdrawals
– 1.00% BTC – Cashback
|5 (>= 50,000 BEST)||– 0.25% Exchange Fee|
– unlimited free ATM withdrawals
– 2.00% BTC – Cashback
Bitpanda Plus program after reaching VIP level 5
The Bitpanda Plus program is an exclusive service provided by Bitpanda. As a user, you get exclusive support, have higher limits for deposits and withdrawals, you can have your deposit and withdrawal methods blocked and some more advantages.
In order to be accepted as a member of the Bitpanda Plus program, there were previously requirements that were very hard to achieve. As BEST 1.0 VIP Level 3 you were qualified for the Plus program. These requirements have now been reduced, as you are now able to be a Bitpanda Plus member by reaching VIP Level 5. Instead of 500,000 BEST only 50,000 BEST are required to participate in the Plus program.
BEST Burn Stimulus is fundamentally changed with BEST 2.0
Bitpanda has also changed the burn stimulus with the introduction of BEST 2.0. Up until now, at least 25% of BEST used for fees were burned every 3 months until only 500,000,000 BEST remain. The process was changed. Bitpanda will now burn up to 25% of all fees paid by BEST VIP members each month until only 250,000,000 BEST remain.
Change of selling pressure to buying pressure with BEST 2.0
Basically, by changing the burn stimulus, Bitpanda has simultaneously converted the pressure to sell into a pressure to buy.
Here is an example of a volatile market and all user who has at least 10 BEST in their account: If the market is volatile (regardless of whether the entire crypto market rises or falls), more fees are collected. So far it has been the case that many users have used their BEST for fees and thus also sold their BEST, which resulted in a falling price. With BEST 2.0 the user keep their BEST and pays the entire fees with their base currency to Bitpanda. Then Bitpanda buys BEST back from the market, burn up to 25% of the collected fees and at the same time give the user back their Instant Trade Bonus in BEST. In a volatile market, BEST are no longer used for fees and therefore sold, instead BEST get bought, burned and partially returned to the user.