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FTM sees upsurge with Fantom’s preparation for relaunch

FTM sees upsurge with Fantom's preparation for relaunch

FTM – After the upheaval around 2022, the cryptocurrency market has begun to stabilize, with several cryptocurrencies rebounding in January.

The newest project to receive excellent news is Fantom, whose native coin, FTM, increased by more than 35% last week.

Along with fresh upgrades, rumors of a new stablecoin for the project have boosted the value of the coin.

A return

Decentralized finance (DeFi) developer Andre Cronje has been gradually making a comeback to cryptocurrency.

He bid the cryptocurrency industry farewell in March 2022 and then returned in November.

Along with many other well-known projects, Cronje is also in charge of Yearn Finance, Keep3r, and many others.

Recent events seem to indicate that the DeFi developer is starting to work again.

As the co-founder and architect of the Fantom Foundation, Cronje is also connected to the layer-1 blockchain that powers the Fantom platform.

Andre Cronje’s status suggests that he is rebuilding fUSD, the native stablecoin of Fantom.

The token

The fUSD is in a precarious position right now, trading at $0.84 after falling to $0.22 in November 2022.

Users were able to mint the stablecoin using an excess of FTM, Fantom’s native token, thanks to the tokens mechanism.

It broke down and became stuck as a result of the community’s low level of confidence in the recovery of fUSD.

The fUSD version had to be completely shut down since the token was falling and falling sharply.

Simple steps may be taken to combine a dead stablecoin with a resurrected version:

Any position where the stablecoin’s value is more than or equal to the FTM or staked FTM (sFTM) back the stablecoin should be liquidated.

To put it another way, Fantom is paying off its debt to start over.

Positive news

Positive aspects of the native stablecoin’s rebirth include compensating developers and supporting the local DeFi ecosystem.

In any case, the stablecoin’s ability to withstand volatility is a major draw for companies looking to develop on blockchains.

“For Fantom, we want to be able to provide builders, partners, and users, a predictable and budget-friendly system,” wrote Cronje.

Fantom progress

Fantom has taken a further step back since January 1 and has watched as the price has increased by an astounding 226%.

At the turn of the year, the build-up really took off, most likely as a result of a surge of updates and chats from Fantom and Andre Cronje regarding the protocol’s development.

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For instance, Fantom established a novel system where 15% of network gas fees are given to the contract’s creators.

In other words, those who create a well-liked dApp on Fantom may benefit from its utilization.

Governance proposal

The majority of Fantom’s updates, which shared that the blockchain employs a system that benefits everyone, were shared on a Twitter thread.

The ecosystem’s creators profit from the gas commercialization since it serves as a draw for developers.

The structure of a Web2 revenue model (ads) is used for the dApp gas monetization, which is modified to encourage network developers to build on it.

The effective tool not only draws in high-performing dApps, but it also keeps them around.

The approach lowers the burn rate by 20% and 5% while diverting 15% to the monetization of gas.

It also has a forum for eligibility, which demands the following:

  • 1,000,000 or more transactions accomplished
  • A stay on the Fantom Opera network of three months or more

Additionally, they inserted a cautionary remark that read:

“Changes are expected around the criteria as we learn more about the effectiveness of certain requirements & will be made at the Foundation’s discretion based on community input.”

Other plans

Andre Cronje has more projects that will start this year.

The creator claims that the blockchain will provide gas subsidies that would let users use Fantom without having to spend FTM, the network’s native gas coin.

Image source: Fantom Foundation

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