Fantom is a fast, high-performance, open-source Layer-1 smart contract platform that hosts multiple digital assets and decentralized applications. FTM is the name and ticker symbol for 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, employs a leaderless Proof-of-Stake consensus to enhance security.
Being a one-stop suite for decentralized finance, Fantom gives its users an array of financial operations such as liquid staking, crypto-asset minting, lending, borrowing and trading. While its official wallet, fWallet, lets you transfer money, stake FTM and access the overall ecosystem. Fantom 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, govern on-chain, and pay network fees. FTM can also be staked to delegators that operate the network. You can even use your FTM tokens to unlock extra utilities via OKX Earn.
FTM is also the main currency of exchange on Fantom and can be used in the network’s variety of DApps and to collect Fantom NFTs. FTM is also used as a governance token, and gives holders the right to vote on important governance proposals regarding the continued development of Fantom Opera.
Fantom is EVM-compatible, meaning developers can deploy decentralized applications and build on the network at a low cost. In addition, their integration with oracle providers, such as Chainlink and Band Protocol, gives developers the flexibility to access price feeds.
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% of the total supply was distributed. Additionally, 15%, 10% and 3.6% were allocated to advisors, the founding team and the strategic reserve. The tokens not in circulation are reserved for staking rewards.
On Aug. 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. This had a positive effect, which is apparent on the FTM price chart.
About the founders
The CEO and CIO of Fantom, Micheal Kong, has worked as CTO at companies such as MyStake and Liberte & Co. He is also the co-founder of 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.
