Is Fantom Token the new Ethereum killer?
The cryptocurrency market has recently been on the rise. Many coins have jumped in on the surge and Fantom is the latest to grab attention. FTM’s bullish rally seems to get stronger every day. Fantom is also the latest coin to be nicknamed the ‘Ethereum killer’ after Solana (SOL) and Cardano (ADA).
What is Fantom?
Fantom is a proof-of-stake blockchain using a different type of consensus mechanism called the Lachesis Protocol. This is a different take on proof-of-stake that does require some delegation to validators. Fantom is an advanced blockchain project that provides a platform to build customized decentralized applications (DAPPs) and non-fungible tokens (NFT). The Fantom Foundation aims to build infrastructure for a more democratic and efficient future while solving challenges faced by older blockchain projects like Bitcoin. Fantom aims to find solutions to increase the speed, security, and scalability of decentralised cryptocurrencies.
Fantom Token launched a 370m FTM incentive program
The Fantom foundation announced a 370m FTM incentive program which in today’s Fantom valuation is about $500 million. Fantom is actually taking a very different approach to how we’ve seen other liquidity incentives. They’re going to be incentivizing developers and teams to build on Fantom. There’s a lot of requirements to get any of these FTM tokens from the foundation but essentially if a team attracts enough TVL for their project they can then apply for these rewards and they’ll be granted them. The team that receives these rewards can either pass it on to users on the platform, take it for their treasury, or take it for themselves. This is a very different approach to a standard liquidity mining program that we see on Avalanche or on Polygon. It could be a much better approach because they’re actually incentivizing developers to build unique platforms and not just getting all this parasitic liquidity that’s just going to jump in for the rewards and then exit the ecosystem as soon as the reward incentives are over.
Why is Fantom FTM going up?
Fantom Token, like SOL which recently exploded, is termed as an Ethereum-killer and uses Direct Acyclic Graph (DAG) smart contract platform. Fantom has improved scalability and the transaction speeds can rise to more than 300k per second. FTM is powered by Lachesis powers the which is built on Ethereum’s blockchain. Owing to the fast and efficient platform, leading blockchain projects like Chainlink, Raviton, and Band Protocol have collaborated with it, causing the surge in price. FTM has been surging for over a month now. It is trading at an all-time high of USD 1.74 after jumping 35.48 per cent in a single day.
We have to give Fantom credit for designing a better way to incentivize liquidity. This means that the yields on Fantom are not going to as high as they were on Polygon or will be on Avalanche but they’re going to be more sustainable and incentivize better long-term development in the ecosystem. As far as what’s available on the network itself uh there really isn’t too much innovation happening right now. We’re definitely just seeing projects that were copied from Ethereum, Polygon, etc. but maybe this incentive program will eventually bring new types of DeFi projects and NFT projects etc into Fantom.