FTX Token is the utility token of the FTX ecosystem. FTX is a crypto-derivatives exchange built by Alameda Research, a cryptocurrency liquidity provider.
FTX serves different functions in the FTX ecosystem. The most prominent ones are lower trading fees on the FTX exchange, various OTC discounts for token-holders, and its eligibility as collateral for derivatives trading.
FTT token-holders can receive socialized gains from FTX's insurance fund, which is governed with a clear policy to prevent any sort of perpetual growth.
Similar to BNB, FTX's supply is also reduced gradually via a weekly repurchase and burning mechanism funded from the fees collected by the exchange.