Fantom is a fast, high-performance, open-source Layer 1 smart contract platform that hosts multiple digital assets and decentralized applications (dApps). FTM is the name and ticker symbol of the native ERC-20 token of the protocol.
Fantom aims to solve the blockchain trilemma, which discusses the trade-off between scalability, security, and decentralization via a directed acyclic graph (DAG)-based model. It uses the Lachesis consensus algorithm, a DAG-based asynchronous algorithm integrated with its mainnet. The technology enables the network to scale to several nodes distributed worldwide in a permissionless and open environment.
The Lachesis consensus algorithm also allows the protocol to facilitate 300,000 transactions per second. In addition, the Opera mainnet, which enables smart contracts through the Ethereum Virtual Machine (EVM), employs a leaderless Proof of Stake (PoS) consensus to enhance security.
Being a one-stop suite for decentralized finance (DeFi), Fantom provides users with an array of financial services such as liquid staking, crypto asset minting, lending, borrowing, and trading. Its official wallet, fWallet, lets users transfer money, stake FTM, and access the ecosystem. FTM is also fully compatible with several other wallets, like the OKX wallet, MetaMask, and various hardware wallets.
FTM is primarily used to secure the network via a Proof of Stake system, for governance, and pay network fees. FTM can also be staked to delegators that operate the network. FTM is also the main currency of exchange on Fantom and can be used in the network’s dApps and to buy Fantom NFTs.
FTM price and tokenomics
FTM has a total supply of 3.175 billion tokens. The platform employs an inflationary model. In its initial coin offering (ICO) that ended on June 18, 2018, 40 percent of the total supply was distributed. Additionally, 15 percent, 10 percent, and 3.6 percent were allocated to advisors, the founding team, and the strategic reserve. The tokens not in circulation are reserved for staking rewards.
On August 30, 2021, FTM announced its incentive program, which allocated 370 million FTM. The program enables protocol teams to apply for rewards based on their total value locked, scaling from one million to five million tokens in the first stage.
About the founders
The CEO and CIO of Fantom, Micheal Kong, has worked as CTO at MyStake and Liberte & Co. He also co-founded Horyzon, an equity management platform built on blockchain technology.
Andre Cronje is the DeFi architect of Fantom. Cronje has extensive experience in the blockchain and cryptocurrency industries and is well-known for founding Yearn Finance.
Fantom has formed partnerships with big names in the industry, such as Chainlink, Band Protocol, The Graph, and Covalent.
