Introducing the Dynamic Rewards System and the FRMx Community Drop

Published in

FerrumNetwork

6 min readOct 20, 2020

Dear Ferrum Community,

We are pleased to announce that following days of proposals, deliberations and voting from the FRMx Governance Committee, we have finalized the terms for the one-time only FRMx Community Drop!

But more than that, we have also developed a new dynamic rewards system that is more fair, valuable and sustainable than the old tier-based system. It ensures that FRMx is like an American Express Black Card for Ferrum holders: very rare, very valuable and very useful.

In this article, we explain the details surrounding the FRMx Community Drop, and preview some critical information for our forthcoming dynamic rewards system. Enjoy!

The FRMx Community Drop

While we will continue to have ongoing monthly benefit rewards for FRM/FRMx holders, we nevertheless wanted to make this one-time only FRMx Community Drop special for the FRM holders.

Therefore, for the Community Drop, everyone holding 100,000+ FRM in their UniFyre Wallet will be Link Dropped 1 FRMx per 100,000 FRM! For example, these are the rewards for the following categories:

100,000–199,999: 1 FRMx
200,000–299,999: 2 FRMx
300,000–399,999: 3 FRMx
400,000–499,999: 4 FRMx
500,000–599,999: 5 FRMx
And so forth.

Therefore, this FRMx Drop, as well as future monthly FRMx rewards, no longer depend on the old tiers. Rewards are now based on actual holdings.

FRMx Bonus for our Smaller Holders

As a way to also give back to the smaller FRM holders, we are proud to announce a lottery where five (5) people will be chosen at random to receive 1 FRMx. The only requirement is they hold at least 50,000 FRM in their UniFyre Wallet!

Total Size of the First Drop

Depending on the number of FRM holders at the time of the snapshot, we expect to Link Drop around $200,000 worth of FRMx to the FRM holders!

For those potentially questioning whether this generous drop might have a negative impact on the scarcity of FRMx — the Committee has designed a clever system for incentivizing the continued use of FRMx, such that its value will be sustained over the long term. Just like most people would think twice before giving away their American Express Black Card, FRMx comes with a number of utilities that make it very valuable for FRM holders such that holding is ultimately more valuable than selling their free FRMx drop.

The new requirements to qualify for the ongoing monthly rewards are one part of the FRMx utility that will sustain its value…

Ongoing Monthly Benefits: A New Dynamic Approach

The Committee has done incredible work devising a new dynamic rewards structure. It will no longer be based on tiers. Rather, the rewards will be based on the exact amount of tokens held, which means it is more fair to each holder. Specifically, the new system calculates exactly how much FRM/FRMx you hold and the price of FRM/FRMx in order to determine your rewards.

Naturally, the more FRM and FRMx you hold, the higher your monthly rewards will be. Expressed in visual language, if FRM is a sports car, FRMx is like a very powerful fuel that significantly increases your car’s speed.

Aside from the new algorithm itself, we are working on a new front end UI that will allow users to see how much they can expect to get each month based on their FRM/FRMx holdings and the price of FRM/FRMx. We can’t wait to reveal the early designs to you!

But how is this new rewards system relevant to the future monthly FRM/FRMx drops?

New Requirements to Qualify for the Dynamic Monthly Rewards

In order to qualify for the new monthly dynamic rewards the Committee has introduced a minimum FRMx holding requirement (while also continuing the 100,000+ FRM holding requirement).

There will be two reward tracks. The first track is for people who hold 100,000+ FRM and 1–2.9 FRMx. The second track is for people who hold 100,000+ FRM and 3+ FRMx.

If you are in Track I (hold at least 1 FRMx), you will qualify to receive monthly rewards in FRM (in an amount determined by your holdings and the dynamic reward structure).

If you are in Track II, (hold at least 3 FRMx), your monthly drop will be in FRMx, with a value multiple times higher than the previous FRM drops. Here it is expressed another way:

Track I—dynamic FRM rewards: Hold 100,000+ FRM and 1–2.9 FRMx in your UniFyre Wallet at time of the snapshot;
Track II— dynamic FRMx rewards: Hold 100,000+ FRM and 3+ FRMx in your UniFyre Wallet at time of the snapshot;
Regardless of track, the size of monthly drop will depend on amount of FRM and FRMx held, and the price of FRM/FRMx, in accordance with the new dynamic structure;
And we are considering a time-component that rewards people for holding FRMx for a longer period of time.

Why create this two track structure? We wanted to generate some additional utility for FRMx and therefore introduce a holding requirement. However, we understand some people might not wish to purchase FRMx. For those people, you will be getting a free FRMx (based on the upcoming Bonus Drop), and will continue to receive rewards in FRM — therefore you are no worse off.

For those who wish to take things to the next level, simply hold at least 3 FRMx and you will begin to receive very attractive rewards in FRMx.

We always strive to maintain fairness while also adding value to the ecosystem. We believe this two track system achieves both aims.

Additional FRMx Utilities

In addition to the holding requirement for rewards, we have introduced more utilities for FRMx, and will continue to announce others as we progress. Here are the current additional utilities:

Those with 5 FRMx will get 50% more rewards for referring staking projects ($750 instead of $500)
Those with 10 FRMx will get a 50% higher allocation for all Foundry incubation projects;
Those with 20 FRMx can join the governance committee (if they are willing to add value), and will then qualify for an additional 1 FRMx in their monthly drop;
With more utilities to be announced soon

Finally, for those that do not want to participate in the holders benefits, FRM/FRMx staking will be launched soon, meaning users will have the option of staking their tokens to earn rewards rather holding them in UniFyre Wallet.

What’s Next: Snapshot and Staking

Snapshot

The snapshot for the Community Drop to determine the amount of FRMx that each member with at least 100,000 FRM in UniFyre Wallet will receive will be taken on Sunday, 25 October on 9pm EST.

Important: After the e-mail with the FRMx Link Drop has been sent out, you will have 36 hours to claim your FRMx — no exceptions for people who do not claim in time!

Then, the FRMx drops will be sent out to claimants within 2 days after the claiming period has expired.

FRM and FRMx Staking

Finally, besides very attractive benefits for just holding FRM/FRMx in UniFyre Wallets, we are preparing the launch of FRM/FRMx staking, followed by further attractive multi-token staking possibilities based on our new advanced Liquidity Staking system. Users will very soon have the option of staking their tokens instead of holding them in UniFyre Wallet and by doing so can obtain even more generous rewards. Please note that for staking the minimum amount of FRM required will be much lower than for receiving the monthly rewards!

A Special Thanks

We want to give a huge special thank you to our Governance Committee who have worked incredibly hard on these initiatives. We are very much looking forward to the weeks and months ahead, as we are already working on more great benefits for the Ferrum community…

Very truly yours,

-The Ferrum Network Team

About Ferrum Network

Ferrum Network is building a DeFi ecosystem that interoperates across chains and removes barriers to mass adoption with user-friendly products for swapping, staking, and transferring cryptocurrencies. Ferrum’s non-custodial UniFyre Wallet has already revolutionized the way people send crypto with its “Link Drop” technology, and is transforming the OTC market with risk-free OTC swaps embedded in a shareable link. Ferrum’s Staking-as-a-Service is now used by dozens of projects, and our multi-token Liquidity Staking along with the FRMx token will revolutionize the staking industry. Look for Ferrum to launch more transformative DeFi technology throughout 2020 and beyond.