Reducing the Minimum Pledge to 50000 or 75000 FTMs: What You Need to Know

03/25/2023 14:06 • Daily Digest • 66 views

According to reports, officially, the Fantom community has proposed reducing the minimum pledge to 50000 or 75000 FTMs.

Fantom Community proposes to reduce the minimum pledge to 50000 or 75000 FTM

The Fantom community has recently proposed a reduction in the minimum pledge to either 50000 or 75000 FTMs. This has created a buzz in the cryptocurrency world since the Fantom network has been gaining momentum as a powerful player in the DeFi space. In this article, we will explore the reasons behind the proposed reduction and its implications on the Fantom community.

What is the Fantom Network?

The Fantom network is a revolutionary platform that operates on a highly scalable and secure DAG (Directed Acyclic Graph) technology. It aims to solve the issue of scalability that has plagued other blockchain-based networks by enabling up to 300,000 transactions per second. This makes it highly attractive to DeFi platforms that depend heavily on fast transaction speeds.

What is the Minimum Pledge?

The minimum pledge is the amount of FTM that is required to become a validator on the Fantom network. Validators are responsible for maintaining the network’s security, processing transactions, and adding new blocks to the blockchain. To become a validator, individuals or organizations need to submit a pledge which will then be frozen and used as collateral.

Why is the Minimum Pledge Being Reduced?

The primary reason for the proposed reduction in the minimum pledge is to increase the number of validators on the network. Currently, there are only 39 validators on the network, and the minimum pledge is quite high at 3 million FTMs. This has made it difficult for new validators to join and participate in securing the network.
By reducing the minimum pledge to either 50000 or 75000 FTMs, it will become more accessible to a broader range of individuals and organizations. This will likely result in an increase in the number of validators on the network, ultimately leading to greater decentralization and security.

Implications of Reducing the Minimum Pledge

Reducing the minimum pledge has both positive and negative implications for the Fantom network. On the positive side, it will increase the number of validators on the network, which will lead to greater decentralization and security. It will also make it easier for smaller entities to participate in validating on the network, ultimately making it more democratic and open.
On the negative side, reducing the minimum pledge could potentially lead to centralization if large entities or institutions with a significant amount of FTMs start dominating the network. This could potentially lead to a single entity controlling the network’s decision-making process, which would go against the principles of decentralization.

Conclusion

Reducing the minimum pledge to 50000 or 75000 FTMs is a proposal that has garnered much attention in the cryptocurrency and DeFi communities. While the primary motive behind the proposal is to increase the number of validators on the network, it’s essential to consider the potential consequences of such a move. The key goal is to maintain a balance between increasing participation and retaining decentralization.

FAQs

1. What is the current minimum pledge to become a validator on the Fantom network?
The current minimum pledge is 3 million FTMs.
2. What is the main reason behind reducing the minimum pledge?
The primary reason is to increase the number of validators on the network.
3. What is the potential downside of reducing the minimum pledge?
The potential downside is that it could lead to centralization if large entities or institutions with a significant amount of FTMs start dominating the network.

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