LOOM Token FAQs — You got questions, we got answers!

Update: The Token FAQ on our official loomx.io website has the most updated info on LOOM. This article is old and the information is outdated.

This post will cover all the common questions we get about the LOOM token, and is updated regularly.

Last updated: June 13, 2018

If you haven’t already ready our post Everything You Need to Know About Loom Network, you should read that first to get a better idea of what we’re building at Loom Network.

Let’s dive into the FAQs!

What is the LOOM token used for?

The LOOM token is used for all products and services offered by Loom Network.

We’ve continued to add more and more uses for the LOOM token since we officially released it in March, and may add more in the future as we release additional products and services.

Here is a list of the use cases we’ve announced so far:

a) Developers: Token Staking & Payment to Run DApps on ZombieChain (and other shared chains in the future)

ZombieChain is going to be a shared DPoS sidechain to Ethereum. Developers can deploy their Ethereum applications to it for a fixed monthly fee, and their users won’t need to pay gas costs on the chain.

Here’s how the LOOM token will come into play:

• Developers who want to run a DApp on ZombieChain lock a minimum of number of tokens into a smart contract to power their DApp.
• Each month, tokens are deducted based on how much shared “bandwidth” that DApp consumes (measured in Transactions Per Second). Developers can choose to cap their throughput at a certain tier to prevent unexpected costs.
• The tokens that are deducted from developers each month get paid to the DAppChain validators as fees for running the DAppChain.

In this way, the token model is similar to EOS’s, except since the LOOM token isn’t inflationary, the real cost of running their DApps is more transparent to developers.

b) Users: Zombie Battleground Game Membership Benefits

In Zombie Battleground, our upcoming collectible card game on the blockchain, there are multiple ways to earn new cards.

You can earn new card packs simply by playing and getting rewards — the game is built to give “lots of loot” so free-to-play players aren’t penalized for not shelling out a lot of cash.

Players who are short on time can optionally choose to pay money for cards — either through buying random card packs directly from us, or buying individual cards directly from other users on our marketplace.

But there’s a third way you can earn cards — by staking your LOOM tokens.

Players who stake their LOOM tokens can get a “game membership” that will give them free packs of cards (and other benefits) each month.

When you stake the tokens, you don’t lose them — you can get them back whenever you want, at which point you’ll stop receiving the monthly rewards. And if you leave them staked, you’ll continue to earn in-game rewards each month.

c) Developers: Enterprise Support for the Loom SDK

The Loom SDK allows developers to easily build their own DAppChains.

For enterprises who want to run their own standalone DAppChain and want hands-on support from our dev team while running it, we’ll be providing premium support at a cost of 100,000 LOOM per year.

d) Users: Access to Loom Transfer Gateways

This was the original use case of the token: The LOOM token acts as a lifetime membership card to all DApps running on Loom Network.

DAppChains are free-to-use for users, but once the user wants to transfer their assets to Ethereum (or another DAppChain), they’ll need to own 1 LOOM token as a membership key.

More information on this use-case is on the purchase page of our website.

e) Developers: Loom SDK License Tiers & Running Nodes

Developers will need to own a sufficient number of tokens to cover their license tier both for using the SDK and operating a node on a private DAppChain.

Where can I buy LOOM tokens?

Tokens are available on a number of different exchanges, such as Coinbase Pro, Binance, Bittrex, Bithumb, Upbit, and Kucoin.

You can see a full list here.

Token price-related questions

What was the “ICO price”?

We didn’t do an ICO — we were privately funded and part of Techstars NY.

When Kucoin first made a secondary market in LOOM tokens, tokens initially started selling at $0.076 USD / 0.000122 ETH, according to CoinMarketCap.

Token-related questions

What is the total supply of LOOM tokens, and is it increasing?

It’s fixed at 1 billion tokens.

What is the circulating supply?

The company holds 35% of the total supply as a reserve fund. We are well-funded for years to come and don’t expect to use that in the near future.

10% is held by team members and advisors with a lockup period ranging from 6–12 months.

The rest is in circulation, so somewhere between 55–65% depending on how much of the advisor pool has entered circulation.

Is LOOM an ERC20 token?

Yes.

What is the contract address of the LOOM token?

You can view the contract on Etherscan:

Loom (LOOM) ERC20 Token Tracker

How do I add the LOOM token to MEW / Metamask?

If you don’t see your LOOM tokens showing up by default…

On MEW:

1. Click “Show all tokens” under “Token balances”
2. ctrl-f or command-f to search in page, and type “LOOM”
3. Click “Click to load LOOM”, and you’re done.

On Metamask:

1. Click “Tokens”
2. Click “Add Token”
3. Paste 0xa4e8c3ec456107ea67d3075bf9e3df3a75823db0 for the contract address, and “Token Symbol” should auto-populate with LOOM. Decimal precision should be 18 by default.
4. Click “Add”, and you’re done.

Adding the LOOM token to metamask

Other wallets / services should have a similar way to add the token as Metamask — search Google for instructions for that particular wallet.

Don’t see your question answered here?

This should cover the most common questions about the token.

If your question isn’t listed here, try searching “loom token” on DelegateCall.

And if you still can’t find the answer, ask a new question on DelegateCall, tag it loom, and someone on our team will get it answered for you shortly!

Or as always, feel free to pop into our Telegram community for help.

That’s all for today! Stay tuned for updates on our mailing list, or follow us on Twitter for the latest.

Loom Network is the multichain interop platform for scaling high-performance dapps — already live in production, audited, and battle-tested.

Deploy your dapp to Loom’s Basechain once and reach the widest possible user base across all major blockchains today.

New to Loom? Start here.

Want to stake your LOOM tokens and help secure Basechain? Find out how.

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