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“We Bought DOT!” Initiative Explained

Ferrum makes a statement around their commitment to securing a Polkadot parachain and begin to accumulate DOT.

Understanding the DotSama Ecosystem

Before we can effectively convey the strategy behind this initiative, its important to understand how the Polkadot-Kusama (DotSama) ecosystem operates. Polkadot founder, Gavin Wood, took quite an innovative approach to the “bet against blockchain maximalism” when creating this sort of ‘blockchain of blockchains’ Layer 0 protocol.

Parachain, auctions, and crowdloans…

Parachain — For starters, a parachain is a project-specific blockchain that is integrated within the Polkadot or Kusama networks. Polkadot supports a limited number of parachains, currently estimated to be about 100.

Kusama vs Polkadot

There is an important distinction to be made between Kusama and Polkadot. Polkadot describes these differences as: Kusama is wild and fast; great for bold experimentation and early-stage deployment. Polkadot is more conservative, prioritizing stability and dependability.

Ferrum’s Parachain Plans

Ferrum is setting out to lock in, not one, but TWO parachain slots. One on the Kusama relay chain and one on Polkadot. The Ferrum X Network will exist as a Kusama parachain while the Ferrum Network InfinityLayer mainnet will exist as a Polkadot parachain.

An Unprecedented Approach

From redesigning the way assets are securely moved across networks with the Ferrum Cross Chain Token Bridge to deploying never before seen staking and deflationary rewards mechanisms via Crucible, Ferrum is consistently attempting and achieving the unprecedented.

FRMx vs FRM

The best place to start when trying to understand these specific challenges and advantages is in the way the economics behind FRM and FRMx are currently structured. At the time of writing, about 13% of FRMx tokens are in circulation whereas upwards of 50% of FRM is in circulation. Typically, when conducting a crowdloan, projects reserve between 10–20% of their token supply for such an event. While this is possible to do with the large amount of uncirculated tokens of FRMx for the Ferrum X Network on Kusama, it’s a bit more difficult of an undertaking with the low supply of uncirculated FRM for the Ferrum Network on Polkadot.

We Bought DOT!

This brings us to the “We Bought DOT” initiative! We’ve committed to allocating a significant portion of our revenue to accumulating a substantial amount of DOT in the coming months. We hit the ground running by purchasing nearly 3000 DOT DOT Purchase Transaction 💰👇
https://bit.ly/BiMonthlyDOTBuybackJuly2022a few days ago and will continue to conduct routine purchases of DOT.

In Conclusion

Not only do we intend for this initiative to bring us closer to our goals of securing parachain slots, but we hope it brings us closer to the DotSama ecosystem as a whole! We’re truly looking forward to beginning our journey in the DotSama ecosystem.

About Ferrum Network

Ferrum is a pioneer in ushering in the era of Interoperability 2.0. Powered by the Quantum Portal, Ferrum Network’s mainnet nodes and related infrastructure will bring value, data, and functional interoperability to every chain in the industry. Utilizing the Ferrum Network, anyone can build and deploy solutions on one network and instantly enable multi-chain functionality without the burden or technical debt that comes with managing a multi-chain infrastructure for their dApps, and projects.

About Polkadot

Polkadot is a sharded, multichain network that allows multiple different blockchains to run in parallel (as parachains), connected to its Relay Chain. Polkadot’s infrastructure enables the transactions from the blockchains to be processed in parallel, also allowing the parachains to communicate and exchange assets between each other via cross-chain messaging, and with external blockchains through bridges.

Ferrum Network Important Links

Website | Telegram | Twitter | YouTube | Discord

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Nick Odio

Seeks Truth. Hacks Biology. Shreds Powder. Watches Markets. Reads Books.