What Is Fantom (FTM)? Features, Tokenomics and Price Prediction
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What Is Fantom (FTM)? Features, Tokenomics and Price Prediction

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CoinMarketCap takes a deep dive into Fantom (FTM), a scalable and decentralized smart contract platform that aims to solve the problem of high transaction costs and low transaction speeds, by utilizing a directed acyclic graph framework.

What Is Fantom (FTM)? Features, Tokenomics and Price Prediction

Table of Contents

Fantom (FTM) is a decentralized and scalable platform that plans to overcome the limitations of (current) blockchain networks. The Fantom (FTM) token holders can stake their holdings and earn staking rewards from the Fantom network.

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100% Price Gain After The Launch Of 370M FTM Incentive Program

After the announcement of the 370 million FTM incentive program, the FTM token has seen an increase of more than 100% in its price which now stands at $0.8463. From July 20, where the FTM token witnessed a low of $0.15, the price has gone through the roof and gained 500% by touching an all-time high of $0.9571
The official FTM website defines the 370m Incentive program as:

‘’From today on, protocol teams will be able to apply for rewards from the Fantom Foundation based on their total value locked (TVL), scaling from 1,000,000 FTM up to 5,000,000 FTM in its first iteration, and to be changed accordingly depending on the needs of builders.’’

How Does Fantom (FTM) Work?

Fantom (FTM) recognizes the limitations of current blockchains in the crypto world and plans to overcome them. The FTM platform is decentralized, scalable, permissionless and open-source which provides it an advantage over major blockchains.
Fantom lowers the costs and increases the performance of decentralized apps (DApps) through Lachesis – a DAG-based asynchronous non-deterministic algorithm that runs the Opera mainnet of Fantom. The main purpose of Opera mainnet is to enable the use of smart contracts through Ethereum's EVM (Ethereum Virtual Machine).
A unique element of Fantom is that its network is completely independent, which means that one area's performance of traffic congestion does not have any effect on other parts of the network. This high level of scalability offered by Fantom (FTM) provides every application with its personalized (independent) blockchain with custom governance rules, tokens and tokenomics.
Unlike Ethereum, which represents a single decentralized machine, Fantom is made up of an uncountable number of decentralized systems which interact with each other, despite working independently in their specific zones.
A major problem that Fantom solves is known as the 'Blockchain Trilemma'. Blockchain trilemma refers to the balance between speed, security and decentralization which cannot be achieved at the same time. Fantom, however, utilizes a permissionless protocol to achieve decentralization and security and uses asynchronous Byzantine Fault Tolerance (aBFT) to process transactions asynchronously which increases the speed of the overall process.

The Vision Behind Fantom (FTM)

Fantom claims to offer high levels of security and scalability, with fast transaction speeds and low transaction costs – an offering that most blockchains don't offer in the crypto world. 

The creators of Fantom are making efforts towards starting a digital revolution that makes people more connected, and transforms their lives in a digital economy where everything from identity, payments and personal records become digital assets.

Unique Features Of Fantom (FTM)

Fast, Secure and Cheap Payment Platform

The payments made on the Fantom network take around 1 second and cost $0.0000001. Additionally, the transactions made on the FTM platform are highly secure due to the Proof-of-Stake system.

Staking Rewards For Fantom Holders

Users who stake their Fantom (FTM) tokens on the platform gain an APR of a minimum of 3.79% to a maximum of 11.59%. The rate of APR depends on two factors:
  • The amount of FTM tokens staked
  • ‍The total time for which the tokens are staked. 

For example, if a person stakes 10 FTM for a period of 221 days, they'll receive 1 FTM token with a current APR of 8.39%.

On the other hand, if someone stakes 20,000 FTM tokens and with a locking period of 30 days, they'll receive 69 FTM with a current APR of 4.14%. To get a custom idea of the APR rate and estimated rewards, you can visit the official website and use the calculator by selecting the number of tokens you hold and the amount of period you want to lock them in the FTM network. 
It must be noted that FTM holders cannot trade, buy, or sell their FTM tokens; they have to unstake them first, which will take about 7 days. Also, if FTM holders unstake their tokens before the lockup period is complete, all of their FTM tokens will be burned!

On-Chain Governance

FTM is completely decentralized and permissionless – any decision can only be carried out by FTM holders who have staked their tokens in the FTM network. Stakers can propose new changes, vote on key decisions, upgrades and define the roadmap for the FTM network.

Fantom (FTM) Tokenomics

The total supply of Fantom (FTM) tokens is 3.175 billion. A total of 2.1 billion FTM tokens are currently in circulation. The rest of the FTM tokens are reserved for providing staking rewards to the FTM holders. The rewards depend on governance decisions; however, as of now, it may take 2 years for the FTM token to reach full circulation and distribute all the rewards to staked FTM holders. 
FTM tokens can be bought from all major exchanges. However, the creators of FTM discourage this practice due to custodial risks and the unavailability of staking rewards for FTM holders who acquire FTM from any place other than the official FTM network.

Use Cases For FTM Token

Fantom is an ERC-20 token that is used on the three major networks, including the ERC20 platform on the Ethereum network, BEP2 on the Binance Chain, and Opera FTM on Fantom's mainnet Opera chain. FTM token plays a major role in:

Compensating Validators

Validators who participate in various FTM activities like preventing transaction spam, validating transactions, and so on, are paid in FTM tokens as a reward for their services

Governance Activities

Holders of FTM tokens (mainly validators and delegates) have the authority to vote on various governance activities such as block rewards, future upgrades, technical committees and so on. The power of a vote depends on the amount of FTM held by a validator or delegator.

Providing Network Security

FTM already works on the Proof-of-Stake (PoS) mechanism, a protocol that Ethereum plans to migrate in its Ethereum 2.0 (ETH2) upgrade. This mechanism requires its validators to hold FTM tokens. 
Every validator who has at least 1,000,000 FTM tokens can earn rewards through their personalized validator node. FTM holders have the option to delegate their tokens to other validators and receive staking rewards (validators get a small fee for this service).

This whole process keeps the FTM network secure from every perspective.

Staking & Storing Fantom (FTM)

To stake your Fantom FTM token you need to hold at least 1 FTM. Here's how you can stake your FTM tokens:

1. Install the PWA wallet on your PC or mobile phone. 

2. Transfer your FTM to your Opera address 

3. Choose from a variety of validators (a reputable one) and stake your FTM tokens.

Currently, the staking reward for FTM tokens is set at 12% APR which changes based on the staking participation of the FTM holder. FTM tokens can be stored in FTM's official PWA wallet, however, at present, the official wallet only supports the Opera Network FTM.

Fantom (FTM) Price

Fantom (FTM) is now trading at $0.8463, as of Aug. 31, 2021. Its 24-hour trading volume on exchanges is around USD $1,182,138,875.00.

Fantom (FTM) Future Outlook and Price Prediction

As of Aug. 31, 2021, Fantom (FTM) is trading at $0.8463. Whether Fantom (FTM) will hit $10 in the near future depends on a lot of factors.  
The blockchain trilemma factor is a major challenge that the FTM network solves for crypto users. As explained above, the FTM blockchain trilemma refers to the balance between speed, security and decentralization – something that most blockchains (even major ones like Bitcoin) don’t offer to their users. Fantom fills this gap and this holds the key, as a major source of attraction for crypto users to switch from other blockchains to the FTM network, which can take the FTM token’s price to $10 and beyond. Ethereum 2.0 upgrade may pose a big competition to the FTM network. However, before its release, FTM holders may expect the fans of the Proof-of-Stake mechanism to use the Fantom platform more, perhaps taking FTM token’s price to the moon along the way.
The 370 million FTM incentive program has increased the price of the FTM token by 100% in the past 24 hours. According to several technical indicators, this price surge is going to continue as this is a major update from the developers of the Fantom network. Users who are interested in staking FTM tokens to gain rewards may continue to join the FTM holder list in the upcoming weeks.

Fantom (FTM) token is run on its custom blockchain, which means that even if major crypto exchanges that (often) face custodial sanctions from various countries shut down one day, the FTM platform will remain active as it is a decentralized platform. Investors are also very keen to invest in projects that have their own blockchain, some of which are dubbed "Ethereum killers". This may be a good sign for Fantom (FTM) holders, as the inclusion of whales would most probably lift the token price to all-time highs.

Now, considering a lot of volatile factors, it is very difficult to say in which direction Fantom (FTM) will tilt, which is why it is advisable to keep an eye on market indicators and technical opinions of cryptocurrency experts before investing in this token.
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