Dear Ferrum Community,
It’s hard to believe it has been over one year since our token generation event. We want to thank all of you who have shown such amazing support throughout this past year!
We’ve done some incredible things together, from the launch of UniFyre Wallet (the only wallet that allows users to send crypto anywhere using a link), to signing up over 20 projects for our DeFi Staking platform, to the launch of The Foundry incubator, to launching a fiat gateway in Africa, along with many other other major milestones. And although we are happy with our progress this year, we still have so much unfinished business…
Therefore, we are confident in saying that year 2 will be even bigger than year one: with the DAG-based interoperability network coming, the launch of our fiat/alt coin peer-to-peer exchange, our forthcoming cold storage app, the launch of a high-speed cross-chain DEX, and the incubation of many incredible new projects (which qualifying FRM holders will be able to invest in!). We have never been more excited about the future of Ferrum Network than we are at this moment.
In this article we provide a preview of what is coming up on the tech and business side, as well as the year two emission schedule, with an overview of our token economics.
A Preview of Our DAG-Based Interoperability Network
With our DAG-based interoperability network coming, Year 2 will see the full vision of Ferrum Network come to fruition. Our cross-chain protocol will unlock incredible technology for our stakeholders and the industry as a whole, such as our high cross-chain Infinity DEX (early demo here) and the ability to transact crypto in UniFyre Wallet peer-to-peer in milliseconds for nominal network fees.
Our main net will enable low-cost and near instant transactions of nearly any digital asset, meaning transactions of Ethereum-based tokens (as well BTC and other chains) will no longer cost multiple dollars in gas fees and take minutes or hours to complete. By leveraging asset-backed synthetics running on our DAG network, our users will have the option of transacting a variety of cryptocurrencies in milliseconds for approximately 1c in network fees, paid in FRM. A portion of this FRM will be burned as proof to the network (also known as Proof of Burn), and a portion will be returned to those running nodes. In essence, users will be able to exchange and transact nearly any asset, regardless of its originating blockchain, in a high-speed, low cost, decentralized environment. It’s a grand vision, but we need to think big if we are going to make a meaningful impact on this industry and bring long term value to our stakeholders.
The Year of Decentralized Fiat/Crypto Exchange
But year 2 is not just about interoperability, it’s also about fiat. One missing piece from the DeFi revolution has been a lack of attention paid to fiat currencies. Tremendous value has been created, and yet, converting crypto into fiat currency is as cumbersome, costly and centralized as ever. Until our landlords, tax authorities, local shop owners and e-commerce businesses all start accepting crypto as a medium of exchange, there will still be an evener present need to convert cryptocurrencies into fiat.
Unbeknownst to many, Ferrum has been quietly working on this problem behind the scenes. Aside from being the first swap technology to enables risk-free OTC transactions over Telegram, Swap Drops is also the pre-curser technology to something much bigger: a peer-to-peer fiat and altcoin decentralized exchange.
With this forthcoming platform, users will be able to buy and sell alt coins directly for local fiat currency, and do it peer-to-peer, using their Paypal as a means of accepting/sending fiat. This platform will solve one of the biggest problems in the industry: the fact that buying/selling alt coins directly for fiat is nearly impossible without going through a centralized exchange.
However, like anything else, it won’t be easy and it won’t be free to bring this platform to the market. This brings us to our year two emission schedule.
Year Two Emission Schedule
Before diving into the emission schedule, it’s important to bear in mind a few facts. First, our raise was small even by bear market standards — $1.12 million. Second, we have arguably outgrown our existing exchanges and want to list on bigger exchanges. Three, we need to allocate more resources to marketing because our products are groundbreaking, yet are still relatively unknown outside of our immediate network. Fourth, we just launched The Foundry incubator, which has tremendous upside for Ferrum and our stakeholders, but also requires some costs in terms of marketing and investing into incubator projects. Fifth, we are looking to hire more developers so we can launch our products faster and improve their designs and UX.
All that being said, we will continue to exercise prudence in our capital expenditures. We believe FRM is still extremely undervalued and we know the best is yet to come. Therefore, it must be emphasized that releasing tokens does not mean they will be moved into the market. Nonetheless, having them available for things like a Tier 1 exchange listing and their liquidity requirements is very important for our continued growth.
Here is the release schedule for year two:
A Review of the Ferrum Network Token Economics
- Total Supply: 329,218,749
- Current circulating supply: 138,073,047
- Total tokens left in reserves: 191,145,702
- Total tokens left after year 2: 156,645,702
- Year 2 inflation (excluding tokens locked for staking rewards): 7.45%
- Year 1 inflation: 41.9%
- Years until fully diluted (at the year 2 emission rate): 5.5
As one can see, the emission schedule is drastically lower than year 1, lower than was planned in our white paper, and results in a low and sustainable inflation rate.
It’s also important to note that our Staking-as-a-Service business and our First Kudi exchange business have been generating nice revenues for us these past few months. Therefore, we do not need tokens to be a sustainable business, but it’s nonetheless important to have some available to continue growing at a fast pace.
In terms of token economics, we are working on various initiatives to increase the liquidity of FRM, which will be announced soon. Second, we will be revealing the details on how the FRM holders can qualify to invest in the pre-sale rounds of Foundry incubator projects. Third, we are close to launching a brand new website that accurately conveys our value propositions (and looks great too)! We can’t wait to reveal all this and so much more in the coming months.
As always, thank you for your continued support of Ferrum Network. Together let’s make year two our biggest year yet!
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. Its cross-chain DAG will enable the transfer of any digital asset in milliseconds for near-zero network fees, unlocking tremendous value for the entire industry. 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 Token Bridge is the fastest, and most secure means of moving assets between Ethereum and Binance Chain. It’s incubator The Foundry brings the best new projects into the Ferrum ecosystem and allows FRM holders to participate in pre-sales. Look for Ferrum to launch more transformative DeFi technology throughout 2020 and beyond.
UniFyre Download Links
UniFyre Android: https://play.google.com/store/apps/details?id=com.ferrum.unifyre
Follow Ferrum/UniFyre on Social Media
Ferrum Website: https://ferrum.network/
UniFyre Website: https://unifyre.io/
First Kudi website: https://firstkudi.com/
UniFyre Twitter: https://twitter.com/UnifyreWallet