Function X: Coin structure, use of funds, governance and proposed roadmap
For transparency, this article will explain in full details of the structure of the FX token, holding addresses, use of fund, and unlock schedule to build the FX ecosystem. Let’s dive in!
FX token structure and holding addresses
*Please note: The breakdown of the 65% for NPXS / NPXSXEM holders is:
- 15% for holders to stake their NPXS / NPXSXEM for FX tokens (Staking from March 20, 2019 to March 19, 2020);
- 45% for holders to convert their NPXS / NPXSXEM to FX tokens (Conversion from April 16 to July 14, 2019);
- 5% for holders who will receive FX tokens through completion of promo / extra tasks.
**This represents 20% of the total possible FX tokens. The remaining supply will be distributed over the next 15 years as a PoS (Proof of service). The total FX maximum supply after 15 year is at 1,893,022,622.31. It’s the fixed supply which is similar to the fixed supply of 21 million Bitcoin.
The f(x) Token is currently an ERC20 token and will be eligible for a 1:1 swap into the f(x) Coin after the f(x) mainnet is launched.
FX Token allocation address and use of funds
The allocation details for FX tokens generated from TGE was announced previously back in Jan and their addresses are listed below:
An independent foundation is in the process of being setup to manage the usage of the Ecosystem Genesis Fund (20%) for Function X.
The purpose of the Ecosystem Genesis Fund (EGF) is to motivate, encourage, and facilitate service providers to join and get rooted into the f(x) ecosystem, and to attract early consumers to enrich and enlarge the f(x) ecosystem. EGF will be used as a bootstrap mechanism to encourage adoption before the tipping jar incentives fully kicks in.
The EGF is divided into 5 parts:
- Consumer (10%): To attract consumers and expand the customer base;
- Developer (20%): To encourage developers to create DApps on the f(x) blockchain;
- Infrastructure service provider (20%): To set up and shift new providers to the f(x) infrastructure;
- Financial service provider (20%): To create a trading platform for f(x) Coin and increase liquidity;
- Emergency bridge reserve (30%): To facilitate the stakeholders in f(x) during extreme market conditions.
The unlock mechanism for the company and foundation is 13 months, which is longer than public. 12% in the first month, 8% per month from the third month and the schedule kick starts from 1 May 2019, 00:00:00 (GMT+8)
1 May 2019, 00:00 (GMT+8) — 12%
1 Jun 2019, 00:00 (GMT+8) — 0%
1 July 2019, 00:00 (GMT+8) — 8%
1 Aug 2019, 00:00 (GMT+8) — 8%
1 May 2020, 00:00 (GMT+8) — 8%
FX Coin is made for empowering the f(x) ecosystem
In the article “f(x) ecosystem and tokenomics explained”, we have discussed the aim of f(x) ecosystem is to create a decentralized network that does not rely on any individual, organization and structure. f(x) will run autonomously. f(x) Coin will be the lubricator and connector to facilitate the operation of f(x) ecosystem with various utilization scenarios. In this article, we will focus more on the how the service providers can be motivated and grow in the f(x) ecosystem.
The mechanism behind f(x) Coin generation is the Proof of Service concept (PoS). The TGE has generated 20% of the total f(x) Coin supply. The rest of the f(x) Coins will be generated through PoS and be given out to the service providers over 15 years.
Service providers play a critical role in developing the f(x) ecosystem. Hence, a tipping jar (the concept is similar to mining) is set up to motivate and facilitate “miners” from other platforms to shift to the f(x) ecosystem and become part of the f(x) infrastructure service providers as well as encourage new service providers to take shape and offer their services to further develop the f(x) ecosystem.
Income for service provider = Service fee (from payer) + Tipping (from f(x) network generation)
The idea is that the f(x) blockchain will generate a certain amount of f(x) Coin (diminishing annually) per second to different segments of service providers. In the first year, for example, the f(x) blockchain will generate 3.5 f(x) Coin per second and it will be distributed among the infrastructure service providers through the Proof of Service concept.
Every service provider such as infrastructure service providers, developers, and financial service providers will receive a ‘certificate’ of Proof of Service in the blockchain after providing the service and redeeming the f(x) Coin. The allocation of infrastructure service providers, developers, and financial service providers each year will be explained further in the next section.
Here is the f(x) Coin release schedule for the next 15 years.
The Tipping Jar Release Mechanism and Allocation for f(x) Coins
Over the next 15 years, this is how the f(x) coins will be “mined” and distributed to the infrastructure service providers, developers, and financial service providers via the Proof of Service concept. Heavier weightage is given to the infrastructure service providers in the first few years (i.e. infrastructure service providers can “mine” for more f(x) coins) because those are considered the formative years for the f(x) ecosystem).
Once the f(x) ecosystem is fully established, more applications (or DApps) will be provided by the developers. Hence, as seen in the table below, the number of f(x) coins available to be “mined” by the developers gradually becomes more than the ones allocated to the infrastructure service providers.
Milestones, roadmap & updates
The concept of Function X was published and announced by Zac Cheah, the CEO and Co-Founder of Pundi X on August 8, 2018. On October 10, 2018, Pitt Huang, the CTO and Co-Founder of Pundi X, revealed the working prototype of the world’s first blockchain phone called the XPhone which allows users to make calls, send SMS, upload files, and more on the Function X blockchain ecosystem without reliance on a centralized service provider. It was a breakthrough moment for the blockchain industry as Function X took the application of blockchain tech beyond financial transactions. History was also made on October 10, 2018 as the world’s first blockchain call was done during Pitt Huang’s reveal of the XPhone.
There was a lot of excitement generated after the announcement of Function X. Given the market’s positive reception, the team decided to proceed with the development of Function X and here is the current roadmap:
- Completed a working XPhone prototype and announced the Function X ecosystem.
- Demonstrated the world’s first decentralized phone call, SMS, and browsing via Function X.
- Demonstrated the world’s first car-hailing DApp on Function X.
- Participated in CES and MWC — two of the world’s largest tech events — and introduced the XPhone.
- Finalized the XPhone’s design and specification, and announced the retail price of US$599.
- Published the Function X concept paper.
- Open staking of FX Tokens by NPXS / NPXSXEM holders.
- Open conversion of FX Tokens by NPXS / NPXSXEM holders.
- List FX token on public exchanges.
- Set up Function X Foundation and committee.
- Announce DApp developers.
- The Function X testnet open for selected testers.
- Publish partial codes of Function X on Github.
- Announce Function X service providers’ partnerships.
- Activate Function X test nodes
*The timeline of the roadmap may change based on the results of the Function X testnet.