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| Fantom Foundations maintains Fantom. Fantom is a high-performance, scalable, EVM-compatible, and secure smart-contract platform.<ref>https://fantom.foundation/intro-to-fantom/</ref> | | Fantom Foundations maintains [[Fantom]] |
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| Fantom’s mainnet deployment—Fantom Opera—is built on Fantom’s consensus mechanism, Lachesis.
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| == What’s the purpose of the FTM token?<ref>https://fantom.foundation/fantom-faq/</ref> ==
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| The FTM token has a number of use cases within the Fantom ecosystem.
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| It plays an essential role for a well-functioning, healthy network.
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| === 1. Securing the network ===
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| Fantom uses a Proof-of-Stake system that requires validators to hold FTM.
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| Anyone with at least 1,000,000 FTM can run their own validator node to earn epoch rewards and transaction fees.
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| Every FTM holder has the option to delegate their tokens to a validator (while keeping full custody of their funds) to receive staking rewards.
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| Validators then take a small fee for their services.
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| By locking in their FTM, validators help the network to be decentralized and secure.
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| === 2. Paying for network fees ===
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| To compensate validators for their services and prevent transaction spam, every action performed within the Fantom network costs a small fee.
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| This fee is paid in FTM.
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| === 3. Voting in on-chain governance ===
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| Decisions regarding the Fantom ecosystem are made using transparent on-chain voting.
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| Votes are weighted according to the amount of FTM held by an entity.
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| Basically, 1 FTM equals 1 vote.
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| With FTM as the governance token, validators and delegators can vote on network parameters such as block rewards as well technical committees and so forth.
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| == What is Lachesis?<ref>https://fantom.foundation/lachesis-consensus-algorithm/</ref> ==
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| Lachesis is Fantom’s aBFT consensus algorithm. Simply put, a consensus mechanism is the engine that powers the blockchain.
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| Compared to Classical and Nakamoto consensus, Lachesis is a faster, more scalable, and more secure choice.
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| Developers can use Lachesis to build peer-to-peer applications without having to create their own networking layer.
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| Lachesis is:
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| * Asynchronous: Participants have the freedom to process commands at different times.
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| * Leaderless: No participant plays a “special” role.
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| * Byzantine Fault-Tolerant: Supports one-third of faulty nodes, including malicious behavior.
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| * Final: Lachesis’s output can be used immediately. There is no need to wait for block confirmations; transactions are confirmed in 1-2 seconds.
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| === References ===
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| <references />
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