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- As stated previously, Treasury tokens will be used to support subcategories such as Exchange Liquidity & Market Making, Bridge/MultiSwap Liquidity, Ecosystem, and Mainnet and Parachain Fund.
- However, if from the beginning, miners were relegated to solely receiving transaction fees as opposed to newly mined BTC, nobody would’ve ever participated in the network.
- At the end of every expansion period 5% of the transaction fees generated on the network during said period will be burned.
- Ferrum’s original tokenomics were designed in 2019, which is an eternity in Web3, and frankly were not optimized for a network.
The rest will be distributed to a virtual pool along with the 0.3% of reserves. This pool will then be distributed with 80% going to QPMs and QPVs and the other 20% going to the Treasury. One day, when BTC’s total supply has been distributed, network validators will only receive rewards in transaction fees. However, if from the beginning, miners were relegated to solely receiving transaction fees as opposed to newly mined BTC, nobody would’ve ever participated in the network. In order for a network to gain adoption, there needs to be a large enough incentive for early adopters. For example, let’s say that 40% (roughly 265,000,000) of our total supply of tokens are in the reserve after the Merge takes place.
What we do know is that we want FRM’s reserve to have a half life of around 4.5 years. That means that every 4.5 years, the remaining supply of the reserves will be cut in half. This approach accomplishes something similar to Bitcoin’s halvening only through PoS mechanisms.
Ferrum Network has created “the first fiat-to-crypto exchange in West Africa”. This gives users access to stablecoins backed by the US Dollar that can be exchanged without counterparty risk. Also, the Link Drop service has done a great deal to remove the probability of human error when interacting with crypto wallets and exchanges. Thanks to Ferrum, it is now possible to send money from Nigeria to any part of the world in milliseconds, with minimal costs and low friction. Ferrum Network offers flexible staking that acts as a type of decentralized savings account.
We will know more regarding exactly how many tokens will be left in the reserve after the Merge is complete, but lets assume there is 40% of the max supply left in reserve post-Merge. If we release 0.3% of that supply every 7 days, we will have a year 1 emissions rate of around 12.35%. This yearly rate of emissions will reduce itself as the supply of the reserve fades. Bridge LiquidityThere is a chance that some Treasury tokens will go to support bridge liquidity. Perhaps FRM will serve as a sort of routing token for MultiSwap in the future.
The DAG-based interoperability network connects multiple blockchains to facilitate super-fast cross-chain transfers of digital assets of any kind. The DAG-based protocol was designed to enable frictionless scalability and cost-effective non-custodial crypto trading and token exchanges. Transaction fees are also one of the mechanisms used to reward QPMs and QPVs as well as fund the Treasury. At the end of every expansion period 5% of the transaction fees generated on the network during said period will be burned.
Harvest Finance community
As stated previously, Treasury tokens will be used to support subcategories such as Exchange Liquidity & Market Making, Bridge/MultiSwap Liquidity, Ecosystem, and Mainnet and Parachain Fund. One interesting note here is that block rewards generated each expansion period will potentially be distributed to QPMs and QPVs as cFRM. This means that QPMs and QPVs will be less inclined to sell their rewards as they would incur a fee.
Will Ferrum still be launching a parachain on Kusama?
Ferrum is becoming a key player in the Staking-as-a-Service (SaaS) industry, providing solutions for dozens of projects globally. The returns for staking vary depending on the assets used and the lock-up period chosen. Ferrum buys back FRM tokens from the open market with revenue generated from Staking-as-a-Service. As the product line of Ferrum Network expands, this could create a positive feedback loop. Furthermore, in the future, there is likely to be an option for FRMx token holders to auction-off any unwanted allocations.
The advanced financial products that run on the network – like our West African fiat gateway (Kudi Exchange) and non-custodial cross-chain OTC wallet (UniFyre Wallet) – aim to empower millions of people around the world. The Kudi app is helping businesses large and small across Nigeria to onboard new customers and make seamless, near-instant payments. Users of the Kudi app are free to send a range of currencies anywhere in the world. Moreover, this is achieved without a third-party intermediary taking a cut. This type of crypto payment service is helping to promote financial inclusion.
Amount of newly converted FRM tokens that a user will receive in exchange for their FRMx tokens
The Merge is designed to simplify Ferrum’s tokenomics, technology, roadmap, and value proposition to new and existing community members. A lot has changed by way of our ambitions since the days of providing solely Blockchain as a Service products and incubating projects through Ferrum Advisory Services. The team at Ferrum has been focusing their energy entirely on building out their interoperable L1 network. Ferrum Network’s current share of the entire cryptocurrency market is 0.00%, with a market capitalization of $ 13.19 Million.
We want to ensure that the release of FRM is in line with our Monetary Policy and the goals of the network. If you remember earlier in the article we discussed how the folks ensuring the security of a network need to have an incentive. Early on in a network’s existence, transaction fees alone will not suffice as a rewards mechanism since transactions may be few and far between. With our reserves having a half life similar to that of Bitcoin, we believe that there will be enough of an incentive to reward early adopters of the network.
Furthermore, Infinity DEX enables ultra-fast transactions at a low cost. This is particularly appealing to those who can’t afford the high gas fees on Ethereum. Complete cryptocurrency market coverage with live coin prices, charts and crypto market cap featuring coins on 750 exchanges. Therefore, we have decided that 20% of tokens released every expansion period will be allocated to the Treasury.
Due to the necessity to boost the engagement on the soon-to-be newly launched network, there will be a slight uptick in emissions during the first year of the network’s lifespan. Here is a breakdown of how the Merge https://cryptolisting.org/ actually impacts the supply of FRM and current FRMx and cFRMx holders and stakers. Of course, the biggest consideration that we had when determining whether or not this was the best path forward, was the community.
FRMUSDT chart
Bridge pools would need to exist on networks that MultiSwap is integrated with. This time they’ve agreed to lock the Team tokens for an additional 12 months and extend the release schedule from 36 to 48 months! The release of these roughly 66 million tokens will not begin until August 2023, and they will not be fully vested until August of 2027! That’s an extra 2 years that Ferrum has added to the vesting for their own tokens. Since cFRM will now exist on Arbitrum, that also means that Crucible is also now compatible with Arbitrum!
The FRM token is used to pay a small fee for every transaction on the Ferrum Network. These fees are then burned as a way to attach proof to each transaction and to provide anti-spamming protection. FRM became a deflationary asset as part of the creation of the Ferrum Cross-Chain Token Bridge, which is of course evolving into our multi-chain swapping protocol, MultiSwap. We furthered this agenda with the advent of our latest DeFi 2.0 product, Crucible, which burns between 0.1–0.4% of all transacted volume of the wrapped reflection version of FRM, cFRM. We will start measuring yearly emissions from the moment the Merge is complete.