Research Summary
This report provides an in-depth analysis of Fantom, a Layer-1 blockchain with smart contract capabilities. It covers Fantom’s core technology, its growth despite market downtrends, and its plans for network improvements. The report also delves into Fantom’s staking system, smart contract chain, token dynamics, and its ecosystem, including DeFi protocols, NFT marketplaces, and gaming applications.
Key Takeaways
Fantom’s Technological Stack and Growth
- Fantom’s Core Technology: Fantom uses the Lachesis consensus mechanism and the Opera state machine, which allow for sub-second finality and improved transaction execution.
- Growth Amid Market Downtrend: Despite market downtrends, Fantom has seen an increase in average daily transactions and active addresses year-to-date.
- Network Improvements: Fantom plans to introduce improvements such as a new StateDB storage system, Fantom Virtual Machine (FVM), and account abstraction.
Fantom’s Staking System
- High Staking Ratio: Fantom’s staking ratio is relatively high compared to other networks, increasing the economic cost for malicious actors and leading to a more stable network environment.
- Staking Rewards: Fantom rewards validators and delegators through staking rewards and block rewards, based on the amount of FTM staked/delegated and uptime.
- Penalties for Misconduct: Fantom validators can have their entire stake plus delegated FTM slashed in the event of a “fork event”.
Fantom’s Smart Contract Chain and Token Dynamics
- Smart Contract Chain: Fantom’s smart contract chain, Opera, allows for smart contracts to be written in Solidity and Vyper, two popular languages for Web3 developers.
- Token Dynamics: FTM, Fantom’s mainnet token, is ERC-20 and BEP-2 compatible. The initial token distribution of FTM included allocations for various stakeholders. Token supply dynamics on Fantom changed in Q4’22 and Q1’23, with a reduction in staking and validator rewards.
Fantom’s Ecosystem
- DeFi Protocols: Fantom’s ecosystem includes DeFi protocols, NFT marketplaces, gaming applications, and more. Top DeFi protocols on Fantom currently include SpookySwap, Tarot, Beethoven X, Scream, and Stargate.
- NFT Marketplaces: Fantom has attracted artists, collectors, and 50 NFT collections, experiencing a resurgence in secondary NFT sales volume after slow growth in 2022.
- Gaming Applications: Gaming activity on the Fantom network is in its early stages, with infrastructure and tools like Balthazar, MetaFab, thirdweb, Moralis, and Wombat being rolled out.
Actionable Insights
- Exploring Fantom’s Technological Stack: Given its unique consensus mechanism and state machine, Fantom’s technology stack could be a valuable area for further exploration and understanding.
- Investigating the Potential of Fantom’s Staking System: With its high staking ratio and reward system, Fantom’s staking system could offer interesting opportunities for validators and delegators.
- Understanding Fantom’s Ecosystem: Fantom’s diverse ecosystem, including DeFi protocols, NFT marketplaces, and gaming applications, could provide a wide range of opportunities for developers and investors.
