Iron Melt: Cornerstone #2 — Buyback of FRMx to Increase Monthly Holder Rewards

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FerrumNetwork

5 min readJun 3, 2021

Yesterday we discussed the burning of FRM as the first cornerstone of the Iron Melt initiative. Today we will explain how we will buy back significant amounts of FRMx and use these to reward our loyal holders…

Revenue Generating Ferrum Products

In total, a portion of the revenue of FOUR Ferrum products and services will be used to buyback FRMX:

Ferrum Token Bridge
Ferrum Staking as a Service
Ferrum Fair Launch Anti Bot Services
Ferrum Advisor Services Incubator

We already covered Ferrum’s white label Token Bridge in yesterday’s announcement and revealed that for the time being 10% of the revenue generated through this new piece of top-notch Ferrum tech will be invested in FRMx buybacks that will be used to reward Ferrum holders.

Before addressing how FRM/FRMx holders will be rewarded, we will lay out the additional Ferrum products that will be used for more FRMx buybacks:

Ferrum Staking as a Service

Ferrum has been the go to staking solution for over 90 projects in the space and we are signing 2–3 new staking clients per week. This has led to tremendous revenue for the company that has allowed us to scale the team and the scope of Ferrum’s roadmap. Ferrum is typically paid out in a combination of USDT and the native token of these projects. Ferrum will now be using 10% of the profits generated through the staking services to buy back FRMx. This will create additional FRMx buy-pressure and the FRMx will then be used to reward the Ferrum community…

Noteworthy to mention that Ferrum will soon be offering additional highly innovative staking products that should further increase the generated revenue…

Ferrum Fair Launch Anti Bot Services

Ferrum has made a living off of diagnosing problems within the space and offering solutions. Ferrum Fair Launches are the latest form of that. Ferrum has already been approached by a number of projects in search of assistance in stopping bots on the day of their DEX listing and the demand keeps growing. Ferrum is typically paid out in USDT or the native token of these projects. Ferrum will now be using 10% of the profits generated through Ferrum Fair Launches to buy back FRMx — these FRMx will also benefit the community…

Ferrum Advisory Services (FAS)

Perhaps the most significant revenue generator for Ferrum as of late has been the incubator. No other incubator offers the level support to its projects that Ferrum Advisory Services does — starting from designing the token metrics, leveraging leading Ferrum tech, providing support through Ferrum’s team of highly sought after experts and even supporting the project months after the launch to maximize the chances for long-term success (and hence also tremendous profit for the Ferrum community that receives exclusive presale access). We could easily sign one FAS project per day — but we adhere to very strict criteria and only select the most promising projects with outstanding teams.

Ferrum is compensated for the services that it provides to projects through a share of advisory tokens of said projects. Ferrum will now also be using 10% of the profits generated through the FAS Incubator to buy back FRMx and allocate it to the same purpose that the Token Bridge, Staking as a Service, and Anti Bot profits will be used for.

Increasing monthly holder rewards

One amazing utility that Ferrum is offering to its holders are the monthly FRMx rewards (holding requirement to qualify for these: at least 50k FRM and 1 FRMx) — depending on the amount of FRMx held Ferrum holders can earn up to 30% APY for simply holding tokens in their UniFyre wallet (no staking required)! Details regarding this monthly reward model can be found here.

When discussing different options on how to use the FRMx from the buybacks with the Ferrum Governance Committee we quickly realized that the most powerful way would be to further increase these monthly rewards that provide a very attractive passive income for our holders! At the same time we wanted to make sure that those community members who are holding larger FRM amounts (and who have suffered the most from the recent price decline) will benefit the most from the increase in monthly rewards…

Therefore, starting with the next monthly reward, the maximum APY that is rewarded for holding FRMx (minimum holding requirement 1 FRMx; maximum APY is achieved for holding FRM:FRMx in ratio of 10,000:1) will be increased as follows:

Holders of 50,000–99,999 FRM: 35% APY (increase of monthly rewards by 17%!)
Holders of 100,000–249,999 FRM: 40% APY (increase of monthly rewards by 33%!)
Holders of 250,000–499,999 FRM: 45% APY (increase of monthly rewards by 50%!)
Holders of 500,000 FRM or more: 50% APY (increase of monthly rewards by 66%!)

Please note the following important aspects:

EVERYONE who has been receiving monthly rewards so far will now receive significantly increased rewards — there is no need to achieve the maximum possible APY to benefit from the new model (the relative increase of the monthly rewards is shown in parenthesis and depending of amount of FRM held ranges between 17 to 60%!).
This significant increase in monthly rewards is sustainable for the overall Ferrum ecosystem because we will be using the above described revenue streams to buy back FRMX from the market.
The significantly increased monthly rewards will be integrated in an updated version of our “rewards calculator” that will be added to the new Ferrum website very soon!
We have already automated part of the monthly holder rewards process and will soon have fully automated it — this will make the whole process more reliable and timely. At the same time besides snapshots on the first of each month there will also be hidden snapshots to prevent people from buying just for the snapshot and selling right after it.
Also people who do not meet the minimum requirement for monthly rewards (50k FRM and 1 FRMx) should significantly benefit from the increased rewards, as these pose a strong incentive for new investors to join and existing investors to hold their FRM and FRMx tokens.

What’s Next?

FRM burns outlined in Cornerstone #1 and the FRMx buybacks and increased Monthly Holder Rewards outlined in Cornerstone #2 should both prove to be quite massive for the Ferrum ecosystem… but wait until you hear about our very special staking opportunity, the Crucible, in tomorrow’s announcement of the Iron Melt’s third and final cornerstone.

Stay tuned!

Very truly yours,

The Ferrum Network Team