Lowering the FRM Threshold for Guaranteed Allocations and Increasing Incentives for Top Holders
Dear Ferrum Community,
As you know, our community is of utmost importance to Ferrum and we pride ourself of being inclusive to both larger and smaller holders — all of them are part of the success of Ferrum. After introducing our lottery tier for holders of at least 1,000 FRM we are delighted to announce further improvements to our private sale allocation model.
Lowering of Threshold for Guaranteed Allocations to 25,000 FRM
One of the differentiating characteristics of private sales via Ferrum Advisory Services (FAS) is that there is no first-come-first-served and no gas wars — instead people holding the required amount of 50k FRM and 0.1 FRX are GUARANTEED an allocation.
With the huge success of the private sales offered through FAS so far — with an average all-time-high ROI of over 50x! — Ferrum has gained a lot of visibility in the market and we are approached by many promising projects that want to launch via Ferrum Advisory Services. We apply very rigorous criteria and only pick the most promising projects with outstanding teams to be offered to our Ferrum community, and we are now in a position to get much larger overall allocations than in the past. With these larger overall allocations we can offer increased allocations to our holders. At the same time, we can lower the FRM holding requirement for receiving guaranteed allocations to 25k FRM. People meeting this minimum FRM-holding requirement in addition to meeting the FRMX-holding requirement will be guaranteed to get 0.25 base allocations, which corresponds to a minimum of $125 (however based on the last private sales the actual amount of 0.25 base allocations was in the range of $200-$250).
Please note: As in the past (for UREEQA) there might be few selected exception where different holding requirements have to be applied — e.g., when the overall allocation is too small to give guaranteed allocations to the majority of Ferrum community members. Any exceptions, while rare, will be communicated to the community in advance.
Increasing the Amount of Required FRMX as of June 2021
As already announced, the FRMX threshold to qualify for guaranteed allocations will increase over time in order to preserve the long-term sustainability of the Ferrum ecosystem. After a series of highly successful FAS project launches, the Ferrum Governance Committee has voted to increase the amount of required FRMX from 0.1 to 0.2 FRMX. To give all community members enough time to accumulate the required amount, this adjusted FRMX threshold will only come into effect as of 01 June 2021. Once the new threshold applies, people holding less than 0.2 FRMX during snapshots will not qualify for guaranteed allocations (even if holding 25k FRM or more) but will enter the lottery instead.
This adjustment of the FRMX threshold is done in order to ensure FRMx remains like an American Express Black Card for all holders: very rare, very valuable, and very useful.
Increasing Incentives for Top Holders
By reducing the required amount to be held to qualify for guaranteed allocations, we create a strong incentive for new investors and smaller holders to accumulate FRM and FRMX. At the same time we also want to incentivize our largest holders to continue holding and accumulating FRM and FRMx. Right now, people holding 750k FRM and 30 FRMX cannot increase their private sale allocation anymore — incentivizing these large holders to accumulate more is in the interest of the overall Ferrum community. We therefore will enhance the current “private sale allocation model” to the upper thresholds of 1 million FRM and 50 FRMX.
For FRM this means that community members holding 750k FRM (which qualifies for 4.0 allocations) can now increase their allocations by accumulating more FRM. Every additional 50k FRM brings 0.2 additional allocations, up to 1 million FRM, which qualifies for a total of 5.0 allocations.
For FRMX, every additional 2 FRMX after 30 FRMX (which qualify for 3.0 allocations) will lead to 0.2 additional allocations up to a maximum of 5.0 allocations awarded to people holding 50 FRMX.
Important: Considering the larger overall allocations we are getting, this adjustment won’t have any sizable impact on allocation amounts for the rest of the Ferrum community members. In addition to that, for regular FAS private sales, we have a guaranteed minimum for base allocations of $500.
What’s Next
We are working on a number of significant updates behind the scenes and couldn’t be more excited — many great things to come in the coming weeks and months, both regarding our FAS incubator but also regarding other Ferrum products… Keep a close eye on the Ferrum announcement channel in the following days and weeks!
Very truly yours,
The Ferrum Network Team
About Ferrum Network
Ferrum Network is a DeFi ecosystem that interoperates across chains and removes barriers to mass adoption. Ferrum’s cross-chain DAG enables the transfer of any digital asset in milliseconds for near-zero network fees. Its non-custodial UniFyre Wallet has revolutionized the way people send crypto with its “Link Drop” technology and Staking-as-a-Service being used by over 50 projects. Their Token Bridge is the fastest and most secure means of moving assets between Ethereum and Binance Chain.
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