This Fantom OperaChain project is smashing the Decentralized ‘governance’ concept!
Fantom’s OperaChain easily wins your heart; not to generalize anyways. With lightning speed and flexibility, it offers one of the best platforms for building scalable applications. Like a missing piece of a very tough puzzle, Fantom offers a complete set of solutions to the DeFi ecosystem. The incredible speed of growth of defi projects on the OperaChain is a pure evidence of the fertility of the Fantom ecosystem for virtually anything! New projects keep launching as existing ones consider switching to Fantom’s operaChain.
Fantom OperaChain presents an impressively high throughput with smooth and instant transactions, earning it the ‘fastest blockchain’ title. A well-deserved reputation. Enjoying this speed and efficiency for almost free is a perfect example of what many other blockchains ‘promise’ to offer. Anyways, these promises remain…promises. Fantom OperaChain’s compatibility with ethereum blockchain smart contracts simplifies the creation of smart contract projects and decentralized applications on the opera chain and also porting of existing projects to the opera chain.
Long praises for Fantom and that’s by the way. Projects are building on the OperaChain each introducing traditional tokens to foster economic growth of their ecosystem. For some other projects; these tokens have found another interesting utility — governance. Via tokenized governance strategy, blockchain projects creates an avenue which promotes censorship-resistant participation of investors in the projects’ ‘politics’.
Decentralized governance gives every enthusiastic participant a share of the projects’ governance, a limitless share with complete freedom of use. Holders, of the governace token participate in the governance process of the concerned project. Voting on proposals, submitting proposals and contributing in all round governance. These tokens give the holder a literal voice…with complete liberty.
Different projects have adopted different approach to decentralized governance. Most popular approach is distributing a DAO token which is solely used to vote on proposals. You’d easily name a bunch of projects using this strategy; a strategy I strongly feel is ‘overused’. Cryptocurrency’s free market is always quick to endow these governance tokens with high values, shifting the idea from a governance token to a store of value and defeating the governance use case as most holders prefer to trade these tokens instead of voting on proposals. A number of ridiculous proposals have been passed as a result of most token holders being indifferent to governance activities and being engrossed with trading their tokens on exchanges.
Well, this Operachain project ‘might’ have finally gotten it right with their approach to governance.
Meet INSPIRIT by Fantom’s SpiritSwap!
SpiritSwap is a roboust DeFi platform built on Fantom’s OperaChain. In addition to decentralized swap services, SpiritSwap offers liquidity mining opportunities and staking as part of its tokenomics and utility strategy. The ghost themed platform leverages OperaChain’s pronounced speed and scalability to build a flexible decentralized finance platform. With over $50 million dollars of assets locked at the time of this writing and providing Automated Market Making services for many other Operachain projects, SpiritSwap is one of the most prominent DeFi projects on the Fantom ecosystem. SpiritSwap’s traditional token, SPIRIT has rallied to a current price of over $0.3 after tumbling over three times in one day.
To promote community participation in its governance, SpiritSwap has introduced INSPIRIT — a token generated by locking up your Spirit token for a selected period. INSPIRIT generated via this process is used to vote on existing proposals. Amount of Inspirit generated is relative to number of Spirit tokens locked and the selected lock-up period. Inspirit also gains a number of other utilities on SpiritSwap, users are also able to boost liquidity farms using Inspirit. To incentivize lock up and INSPIRIT generation, weekly distribution of Spirit tokens is made to Inspirit holders.
SpiritSwap achieves a ton with its Inspirit program; a time-based token lock-up, an untradable governance token and a working reward-based system.
With hundreds of millions of tokens in circulation, SpiritSwap faces an uphill task in trimming the number of tokens in circulation to the lowest possible figure. Liquidity farming works to an extent, but with the freedom of staking and unstaking at will, holders easily return their locked tokens into active circulation. Offering a program which requires holders to lock up their tokens without the freedom to unlock them at will provides a true supply management strategy. These tokens are locked and cannot be unlocked until the chosen lock-up period elapses.
An untradable governance token? A master strategy, to be frank! Inspirit holders cannot trade their governance tokens. This token can therefore only be used for two purposes — voting and boosting farms. Apart from these, holders only get to keep their Inspirits dormant. Trading governance tokens hasn’t gone so well, we have seen this play out several times. They simply lose their purpose. With trading out of the way, Inspirit holders are forced to utilize their tokens the right way.
Inspirit holders are entitled to weekly rewards from the rewards pool, this again is relative to the number of Inspirit held. Current calculated APR of this reward system is over 200%. Get paid for drinking coffee? Sounds about right!
SpiritSwap nailed it, moves of this kind sets a project right on the path to success. It’s a perfect example of the idiomatic ‘killing two birds with a stone’. The project has seen a good growth in token value and platform users since announcing this development. Well deserved, I must say!
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