Ferrum Team Extends Team Token Vesting by Two More Years
After increasing the vesting for Team tokens yet again, Ferrum once again demonstrates they are here for the long term and strongly believe in the future of Ferrum!
Dear Ferrum Community,
Ferrum’s original tokenomics were designed in 2018, which is an eternity in Web3 — most crypto projects that launched around that time have ceased to exist. On the contrary, Ferrum has never had stronger fundamentals and is here to stay. To support the anticipated release of the Ferrum InfinityLayer mainnet we are happy to share that we are introducing several improvements to the $FRM tokenomics.
We are revising our token distribution to reflect the team’s commitment to long-term success without compromising the resources necessary to support exponential growth. We strongly believe that these updated tokenomics will more accurately depict the current state of Ferrum and put us in a position to achieve our long-term vision and goals.
Ferrum Extends Team Vesting by ANOTHER 2 Years
The first thing we’d like to divulge as it pertains to the new tokenomics is perhaps the biggest change in the vesting schedule — the Ferrum Team tokens. This category makes up 10% of the Max Supply.
The team is in it for the long haul and have agreed to increase the duration of the Team token vesting period significantly. Originally, the team had a 1-year cliff, meaning tokens would’ve started vesting 12 months after launch or in August of 2020. The ensuing release schedule was spread out over 3 years. Team tokens would’ve been entirely vested by August of 2023. In August 2020, the team decided to extend the lockup to 3 years and increase the release schedule from 24 to 36 months as well. This would’ve meant that Team tokens would’ve been fully vested by August of 2025…
Well, the Ferrum team has done it again. 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 33 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.
Note: Most Web3 teams have between 6 and 12-month cliffs and release schedules lasting from 12 to 36 months, with 48 months of total vesting being on the high end. Ferrum now has a 48-month cliff followed by a linear release schedule lasting 48 months for a whopping total of 96 months of vesting!
Since Ferrum’s inception, the team has DOUBLED the amount of time they’re waiting to tap into their allocation of $FRM. That’s dedication and clear proof that there is much more to come from Ferrum…!
Team Tokens are Now Performance Based and More Decentralized
Unlike most projects, which offer team tokens regardless of a team member’s impact, Ferrum is taking a different approach that aligns more closely with stakeholders’ interests. Team tokens will be offered to team members who have demonstrated that they benefit the organization most. The amounts given to an individual team member will be based on quarterly assessments of individual team members. Any team member who does not live up to their expectations to provide a meaningful benefit to the project will not be given tokens from the Team category that quarter. Therefore, team tokens will be used as a mechanism to incentivize team members to perform to the best of their abilities over the long term, thereby aligning the interests of all Ferrum Network stakeholders.
Furthermore, Team tokens were originally for a much smaller group of team members. Now that the team has scaled drastically in the last 2 years, the Team category of tokens will be distributed amongst a much larger set of individuals, further decentralizing the supply.
Testament to the State of the Company
More than anything, the decision to extend vesting on Team tokens is a testament to the efficiency with which Ferrum continues to operate. With 2 years of runway, there is simply no need for Ferrum to touch not only the Team tokens but any tokens in the Treasury, for that matter. Ferrum pays its salaries to its roughly 35 full-time employees using revenue generated from its products and services.
Find out more about the state of Ferrum here. While this article was written some months ago, the same principles remain today!
In Conclusion
We are thrilled to release this first update on the newly designed tokenomics to the community! We feel that these revamped tokenomics will continue to be on par with the level of transparency we strive to adhere to in every aspect of Ferrum. Most importantly, however, these newly designed tokenomics will help set Ferrum up for success as we continue to push forward toward Ferrum’s InfinityLayer mainnet and our vision of Interoperability 2.0! More updates on both FRM and FRMx tokenomics will be released in the coming weeks and months, along with another newsworthy token-related update.
About Ferrum Network
Ferrum is ushering in the era of blockchain interoperability 2.0. Powered by a multichain messaging engine known as Quantum Portal, Ferrum Network’s mainnet will bring value, data, and functional interoperability to every chain in the industry.
Utilize Ferrum Network to build and deploy solutions on one network and instantly enable multichain functionality without the burden or technical debt that comes with managing a multichain infrastructure.
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