FMB token: FarmBit’s fertile soil
Looking at our native FMB token and exploring its use cases 🌱
One of the many benefits of the expanding blockchain economy is the tokenization of assets. Digital currencies, virtual art, real estate, luxury goods and even voting power are being turned into tokens in innovative, emergent use cases.
This technological flexibility is perfectly suited to solve shortcomings within the agribusiness industry, and at FarmBit we leverage this to full effect. Both fungible and non-fungible tokens (NFTs) are used by our platform in several capacities.
In this article we look at FMB, the native token which powers our network, and focus specifically on the benefits it offers both investors and users.
FMB: A token with utility
Many crypto assets are launched with no real utility in mind. They’re tokens made as an afterthought: added on because the team mistakenly believed that a token is necessary for a blockchain project. FarmBit is different: we’ve carefully designed our token to give holders a world of utility and have built our protocol around it from day one.
The primary uses for FMB fall into four general categories:
The FarmBit protocol is built around our unique FarmBit Pools which enable decentralized agribusiness financing. Investors providing capital and liquidity to the Pools are incentivized to do so thanks to the rewards and interest they earn on top of the liquidity they provide.
Because FarmBit doesn’t require long lockup periods for capital, these rewards can be claimed at any time. The exact mechanics are detailed in our whitepaper, but in a nutshell: when liquidity providers withdraw their invested capital they receive their initial stablecoin investment, interest paid on the loan plus a proportional FMB reward.
But it isn’t just stablecoin investors who benefit from FMB rewards. Anyone providing any asset to FarmBit Pools earns rewards — including users who provide collateralized NFTs. This ensures that FMB tokens are distributed to all stakeholders on the platform.
Staking and Liquidity Mining
Staking involves locking up tokens within the FarmBit protocol for varying lengths of time to be used by the ecosystem for various purposes. Staking also reduces circulating supply, creating positive price action to the benefit of holders. As a reward for staking tokens, stakers receive attractive yields on top of their balances. The more you stake, the more you stand to earn proportionally.
Exchange liquidity is also essential for any crypto token. To encourage FMB holders to provide liquidity (where they earn part of the transaction fees from exchanges), liquidity tokens can also be staked for even more FMB rewards. This is our way of saying thank you to holders for providing this essential service, and ensures liquidity providers are adequately compensated for their risk.
FarmBit is built on principles of transparency and fairness. To this end, FMB holders have the ability to participate in governance through on-chain voting. Governance votes can be taken for any reason, such as to make changes to the protocol, add or remove functionality or even to amend fee structures.
Governance is one of the reasons why rewards distributions are so important in FarmBit. By ensuring all users have the chance to earn FMB rewards we can be sure that all stakeholders — especially those who actively use the protocol — have a say in its direction.
To protect the network and ensure its stability, transactions through the FarmBit protocol require the payment of fees. These fees are paid with the FMB token, creating natural demand from those that use the platform.
FMB has a max supply of 200,000,000 tokens. The tokens are divided into different allocations with varying lockups and vesting, although full token emission is expected to take approximately 36 months.
The token is initially launching on Binance Smart Chain, although bridges to other chains are already being developed.
Total supply: 200,000,000 FMB
Initial circulating supply: 10,920,000 FMB
Initial market cap: $253,071 USD
A token with promise
We’re building FarmBit to solve persistent problems in the agribusiness sector, and FMB is central to the protocol’s designs. Not only does the token have broad utility throughout FarmBit, but it also represents the promise of what the project will become. As we grow and expand the demand for FMB will grow, returning benefits for holders above and beyond what they get as rewards.
We’re creating solutions to the challenges of agribusiness financing — be sure to follow us on all our social channels so that you don’t miss any updates 🌱