Wrapped Fantom
WFTM is a DeFi-compatible version of FTM. FTM is the native currency of the Fantom chain used for gas fees and security.
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- Asset Type: Wrapped Native
- Volume (24H): $9M
- ATH: $3.47 (10/26/2021)
- ATL: $0.15 (07/20/2021)
Wrapped is a mid-cap asset that represents the protocol`s native governance or utility token.
Wrapped Fantom has no dependencies.
Wrapped has a fixed supply. FTM is "wrapped" to make it compatible with DeFi smart contracts. 1 Wrapped FTM is always equal to 1 FTM.
Wrapped FTM is moderately correlated to the overall market.
What is FTM used for?
The FTM token has two main use cases: to pay for gas fees on the network and for staking to secure the blockchain. The Fantom network requires a small amount of FTM to execute transactions on the blockchain. Validators on the network are required to stake FTM to process network activity in return for staking rewards and transaction fees (paid in FTM).
FTM tokenomics
The total supply of FTM is capped at around 3.175B tokens. Prior to mainnet launch, the entirety of the FTM supply was pre-mined. Of this amount, about 40% of the supply was sold to private investors in three separate rounds. Founders, the project team, and advisors collective received roughly 20% of supply. The remaining 40% was split between a smaller strategic reserve and the pre-mined rewards reserve.
How does FTM accrue value?
A portion of fees (~30%) paid to execute transactions on the Fantom network are burned, reducing the supply, and increasing the FTM token's scarcity. If network demand is strong enough and the number of FTM burned exceeds the amount minted via staking rewards, then the asset can become deflationary. This deflationary effect will mostly be offset in the beginning by inflationary token emissions to reward validators.