Fantom [FTM], an innovative distributed technology platform that utilizes a Proof of Stake consensus algorithm, recently proposed significant modifications. These changes are set to have a notable impact on the process and requirements for validators.
Read Fantom (FTM) Price Prediction 2023-24
Fantom announced on 25 March that it intends to modify the requirements for validator staking. Under the new proposal, the plan is to significantly reduce the minimum validator staking requirement to a more attainable range of 50,000, 75,000, or 100,000 FTM.
The previous requirement was an astronomical 3.175 million FTM before being subsequently reduced to 500,000 FTM. For context, 500,000 FTM is valued at roughly $200,000 in current market conditions.
By comparison, Ethereum requires 32 ETH to become a validator, which amounts to roughly $54,000.
In the Fantom network, validator staking is a key mechanism that helps ensure the network’s security and stability. Validators are nodes responsible for processing transactions and maintaining the integrity of the blockchain. They are chosen through staking, where users can lock up their tokens to participate in the network as validators.
When users stake their tokens, they lock them up in a smart contract for a set period. During this time, the tokens support the network by validating transactions and securing the blockchain.
These adjustments to the validator staking requirements on the Fantom network are set to create a more inclusive and accessible environment for interested validators to join. It will also simultaneously open up opportunities for greater decentralization on the platform.
According to data provided by Staking Rewards, the current staking ratio of Fantom stands at over 50%, indicating that a significant proportion of FTM holders are actively participating in the network as validators.
The staking market cap, which is the total value of tokens staked on the network, at press time, was over $614 million. And the market cap of the platform stood at over $1 billion.
Source: Staking Rewards
Furthermore, the platform has steadily increased stakers over the last 30 days, with over 91,000 new stakers joining the network.
The number represents an addition of about 1.32% to the total number of stakers on the platform. These statistics suggest the Fantom network attracts new users interested in participating in the platform’s staking activities.
After analyzing the data from DefiLlama, the Total Value Locked (TVL) on the Fantom network has remained relatively stable. At the time of writing, TVL was roughly $454 million, with a 0.45% decrease over the past 24 hours.
However, the proposed reduction in the validator staking requirement could lead to more FTM being locked on the network, increasing the TVL in the coming months.
How much are 1,10,100 FTMs worth today?
Furthermore, over the past two trading sessions, Fantom experienced a significant price decline, losing over 12% on a daily timeframe.
However, at the time of writing, it had rebounded slightly, gaining almost 2% and trading at around $0.44.
Despite its recent price movements, the Relative Strength Index (RSI) line stayed above the neutral line, showing that the coin was still in a relatively strong position.