The field of Decentralized Finance (DeFi) is undoubtedly amongst the hottest topics in 2020 as the industry has grown substantially over the past months.
Recent DeFi developments are paving the way for new financial models as investors seemingly grow interested each day. Consequently, DeFi Pulse records an increase in locked assets’ value, which moved from $10.75 billion to $16.4 billion between mid-September and December 19.
Owning an adequate amount of digital assets gives users a bigger chance of farming in the DeFi ecosystem. However, the risk of inflation continues to strike tokenized platforms, which may affect your income as more tokens get issued to the market.
Joining the DeFi sector is Flaming Farm, a new project aiming at becoming the leading token burning network. The deflationary platform intends to solve the token price issue and play the role of a scarce asset.
Understanding the Concept of Deflationary Tokens
Token burning is an innovative mechanism that Flaming Farm adopts to guarantee the price stability of a token. The burning procedure can occur in two scenarios; either the platform buys back all tokens from the market or completely discards a portion of it from distribution.
Furthermore, the ‘excess tokens’ are unallocated assets that sometimes are under the custody of the founding team’s wallet. During the actual event, the tokens are sent to an irrecoverable public address and burnt from there.
The digital asset world essentially experiences two forms of inflation cases whereby an inflating cryptocurrency/token continues to add up to the market’s cumulative supply. The other inflationary movement is neutral, i.e., the token’s total supply does not multiply or decrease with time.
Nonetheless, burning digital tokens falls under the deflationary category, which targets restricting token supply and elevating its prices. Flaming Farm burns its native token(FFARM), starting from the rate of 2.5% based on the number of tokens available on the liquidity pools.
Participating in Flaming Farm
Engaging with the community is the first way a company can build its brand name. Therefore, Flaming Farm seeks to invite more users through their public crowd sale. The private sale phase was a success as it ran up to December 9 to attain a hard cap of 300 ETH.
Both activities require users to make their ETH contributions on a certain crowdfunding address as provided by the Flame network. To successfully make the ETH contributions, the deflationary platform advises buyers to utilize a Metamask or Trust Wallet or an alternative wallet supporting ERC-20 tokens.
The purchasing price of FFARM varies depending on the sale phase in that the private sale had a minimum purchasing price of 0.5 ETH and a maximum price of 30 ETH. On the other hand, the ongoing pre-sale funding limits a purchasing price of 0.16 ETH to 20 ETH. Moreover, the presale targets achieving a hard cap of 600 ETH as it releases 4000 FFARMs.
A Governance Instrument
Flaming Farm presents the opportunity to participate in voting for vital implementations on the network. To qualify for the governance position, investors need to own FFARM tokens. Flaming Farm’s decentralized nature permits FFARM owners to decide on key upgrades such as fee adjustments or adding new pools to the network.
Pool Staking, Earning Opportunities, and a Simplified Roadmap
Developers on the Flaming Farm network plan to link DAI, USDT, and ETH pools for staking enthusiasts. Since the network runs on community guidelines, new pools will continue to be added and encourage a diverse staking choice. Stakers receive profits on their end as the liquidity pool garners funds from the transaction charges.
Therefore, the rewards depend on how frequent stakers interact with the liquidity pool and how much the pool accumulates. Furthermore, users can provide lending services and also borrow money whose interest goes back to the liquidity pool.
Flaming Farm’s prospects aim at working with worthwhile partners who will boost the ecosystem moving forward. In particular, the DeFi platform hopes to dive into the gaming industry and apply its distinct farming architecture. The token will also feature on CoinMarketCap and CoinGecko, the statistical networks displaying live data concerning the token’s price movements.
Flaming Farm gives an attractive yet friendly interface capable of monitoring the current, past, and future earnings. It enables users to keep track of profits from all the pools the DeFi network incorporates. Designing a top-notch interface is intended to retain investors and facilitate a straightforward farming experience.
Flaming Farm is a new and interesting project in the DeFi field. The native FFARM tokens can also be used as a trading tool on prominent decentralized exchanges such as Uniswap.
Applying the token burning procedure aims to ensure that the right amount of FFARM token circulates the market, making it a rare commodity. Provided an investor has an ERC-20 compliant wallet, they can send FFARM to anyone globally. As the yield farming community expands, Flaming Farm hopes to put users’ assets and investments to work.