Fantom to shake up validator staking requirements, moots changes to entry

Please fol­low and like us:
Pin Share

  • Fan­tom pro­pos­es chang­ing val­ida­tor stak­ing require­ments to as low as 50,000 FTM.
  • Despite recent price declines, Fantom’s stak­ing ratio is over 50%.

Fan­tom [FTM], an inno­v­a­tive dis­trib­uted tech­nol­o­gy plat­form that uti­lizes a Proof of Stake con­sen­sus algo­rithm, recent­ly pro­posed sig­nif­i­cant mod­i­fi­ca­tions. These changes are set to have a notable impact on the process and require­ments for validators.


Read Fan­tom (FTM) Price Pre­dic­tion 2023–24


Fantom tweaks validator staking requirements

Fan­tom announced on 25 March that it intends to mod­i­fy the require­ments for val­ida­tor stak­ing. Under the new pro­pos­al, the plan is to sig­nif­i­cant­ly reduce the min­i­mum val­ida­tor stak­ing require­ment to a more attain­able range of 50,000, 75,000, or 100,000 FTM.

The pre­vi­ous require­ment was an astro­nom­i­cal 3.175 mil­lion FTM before being sub­se­quent­ly reduced to 500,000 FTM. For con­text, 500,000 FTM is val­ued at rough­ly $200,000 in cur­rent mar­ket conditions.

By com­par­i­son, Ethereum requires 32 ETH to become a val­ida­tor, which amounts to rough­ly $54,000. 

Understanding Fantom validators

In the Fan­tom net­work, val­ida­tor stak­ing is a key mech­a­nism that helps ensure the network’s secu­ri­ty and sta­bil­i­ty. Val­ida­tors are nodes respon­si­ble for pro­cess­ing trans­ac­tions and main­tain­ing the integri­ty of the blockchain. They are cho­sen through stak­ing, where users can lock up their tokens to par­tic­i­pate in the net­work as validators.

When users stake their tokens, they lock them up in a smart con­tract for a set peri­od. Dur­ing this time, the tokens sup­port the net­work by val­i­dat­ing trans­ac­tions and secur­ing the blockchain. 

These adjust­ments to the val­ida­tor stak­ing require­ments on the Fan­tom net­work are set to cre­ate a more inclu­sive and acces­si­ble envi­ron­ment for inter­est­ed val­ida­tors to join. It will also simul­ta­ne­ous­ly open up oppor­tu­ni­ties for greater decen­tral­iza­tion on the plat­form. 

A look at Fantom’s staking ratio

Accord­ing to data pro­vid­ed by Stak­ing Rewards, the cur­rent stak­ing ratio of Fan­tom stands at over 50%, indi­cat­ing that a sig­nif­i­cant pro­por­tion of FTM hold­ers are active­ly par­tic­i­pat­ing in the net­work as validators. 

The stak­ing mar­ket cap, which is the total val­ue of tokens staked on the net­work, at press time, was over $614 mil­lion. And the mar­ket cap of the plat­form stood at over $1 billion.

Fantom monthly stakers

Source: Stak­ing Rewards

Fur­ther­more, the plat­form has steadi­ly increased stak­ers over the last 30 days, with over 91,000 new stak­ers join­ing the network. 

The num­ber rep­re­sents an addi­tion of about 1.32% to the total num­ber of stak­ers on the plat­form. These sta­tis­tics sug­gest the Fan­tom net­work attracts new users inter­est­ed in par­tic­i­pat­ing in the platform’s stak­ing activities.

A look at TVL, daily timeframe chart

After ana­lyz­ing the data from DefiLla­ma, the Total Val­ue Locked (TVL) on the Fan­tom net­work has remained rel­a­tive­ly sta­ble. At the time of writ­ing, TVL was rough­ly $454 mil­lion, with a 0.45% decrease over the past 24 hours. 

How­ev­er, the pro­posed reduc­tion in the val­ida­tor stak­ing require­ment could lead to more FTM being locked on the net­work, increas­ing the TVL in the com­ing months. 

Fantom Total Value Locked

Source: DefiLla­ma


How much are 1,10,100 FTMs worth today?


Fur­ther­more, over the past two trad­ing ses­sions, Fan­tom expe­ri­enced a sig­nif­i­cant price decline, los­ing over 12% on a dai­ly timeframe. 

How­ev­er, at the time of writ­ing, it had rebound­ed slight­ly, gain­ing almost 2% and trad­ing at around $0.44.

Despite its recent price move­ments, the Rel­a­tive Strength Index (RSI) line stayed above the neu­tral line, show­ing that the coin was still in a rel­a­tive­ly strong position.

FTM/USD daily price move

Source: Trad­ingView



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *