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Fantom (FTM) Community is Voting to Reduce Validator Node Staking Amount

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Cryptocurrency project Fantom (FTM) recently announced on Twitter that its community is currently facing another governance proposal. The token holders are now expected to vote and decide what the project is going to do regarding validator node staking.

What is the proposal about?

Fantom is a directed acyclic graph (DAG) smart contract platform that provides decentralized finance services to developers via its bespoke consensus algorithm. The project is fully decentralized, which means that all decision-making is done by its own community of token holders.

One such decision is about to be made right now, as the project recently put a new proposal before its members. The proposal concerns the amount that community members are required to stake in order to become eligible to run validator nodes within the Fantom network.

According to the proposal, the community can now vote between three different amounts, and the one that receives the greatest number of votes will be implemented. The proposal is asking if the minimum amount required to run a node should be set to 50,000 FTM, 100,000 FTM, or 250,000 FTM.

At this time, the required amount is still set at 500,000 FTM, which is the equivalent of around $1.5 million, based on the FTM price sitting at $3. However, many feel that this amount is too big, despite the fact that it would mean greater chances that bad actors would attempt to become node validators. On the other hand, this also means a smaller network of validators, which is also not the best result for the project.

Having the minimum amount at $1.5 million puts it beyond reach for the majority of those who would be willing to become node operators, hence the need to change it. However, the proposal is rather strict, requiring a minimum of 90% of community members to give their opinion. In other words, if 10% or more refuse to vote, the network will be unable to reach quorum, and the proposal will fail, with no change being implemented.

About Fantom

As mentioned earlier, Fantom is a DAG smart contract platform aimed at providing DeFi services to developers. It uses its native cryptocurrency FTM to solve problems connected to smart contract platforms. It particularly focuses on things such as transaction speed, which the developers managed to reduce to under two seconds.

The coin’s price saw massive growth in late 2021, which it managed to replicate and even surpass as the new year started, reaching its all-time high at $3.3 on January 16th. Since then, however, the coin saw a significant price correction that took it to the support at $2.

While the support managed to stop the drop and even let Fantom bounce back up to $2.45 by January 25th, the coin has been slowly dropping ever since. In the last 24 hours, it dropped by 8.55%, forcing it to break the support at $2 and drop down to $1.90, which is where it sits at the time of writing,

To learn more about this token visit our Investing in Fantom guide.

Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.