Understanding DAO Technology

Decentralized Autonomous Organizations, or DAOs, are a new form of organization that operates without the need for centralized control. DAOs are built on blockchain technology, which allows them to operate transparently and securely without the need for intermediaries. DAOs are open to anyone, and their decision-making processes are determined by a set of rules encoded in smart contracts.

DAOs have the potential to revolutionize many industries, including the hemp industry. Hemp is a fast-growing plant that is used to produce a wide range of products, including textiles, paper, food, and medicine. However, the hemp industry faces many challenges, including regulatory hurdles, supply chain inefficiencies, and the need for quality control and certification. DAO technology can help address these challenges and create a more efficient and sustainable hemp industry.

The Potential of DAO for the Hemp Industry

DAO technology has the potential to transform the hemp industry in many ways. By enabling decentralized governance and collaborative decision-making, DAOs can help create a more democratic and transparent industry. Smart contracts and transparent transactions can improve supply chain management and ensure fair compensation for all participants. DAO-based funding can help support hemp-related projects, while DAO-based quality control and certification can help ensure the safety and efficacy of hemp products.

Decentralized Governance and Collaborative Decision-Making

One of the key benefits of DAO technology is its ability to enable decentralized governance and collaborative decision-making. In a traditional organization, decisions are made by a centralized authority, such as a board of directors or a CEO. In a DAO, decisions are made by a decentralized network of participants, who vote on proposals using a set of rules encoded in smart contracts.

This decentralized approach to governance can help create a more democratic and transparent industry. By giving all participants a voice in decision-making, DAOs can ensure that the interests of all stakeholders are taken into account. This can help create a more equitable and sustainable industry that benefits everyone involved.

Smart Contracts and Transparent Transactions

Smart contracts are self-executing contracts that are encoded on a blockchain. They can be used to automate many business processes, including supply chain management, payment processing, and quality control. Smart contracts can help create more efficient and transparent transactions, as all transactions are recorded on a public ledger that is accessible to all participants.

By using smart contracts for supply chain management, for example, DAOs can ensure that all participants are compensated fairly and that all products are produced in a sustainable and ethical manner. Smart contracts can also help reduce fraud and corruption, as all transactions are recorded on a public ledger that is tamper-proof.

The Advantages of DAO Technology for Hemp Farmers

Hemp farmers face many challenges, including regulatory hurdles, supply chain inefficiencies, and the need for access to funding and resources. DAO technology can help address these challenges and create a more efficient and sustainable farming industry.

By using DAO-based funding, for example, farmers can access capital without the need for traditional banks or investors. DAOs can also help farmers access resources and information, such as best practices for planting and harvesting hemp, and regulatory compliance guidelines.

Improving Supply Chain Management with DAO Technology

One of the biggest challenges facing the hemp industry is supply chain inefficiencies. By using DAO technology for supply chain management, the industry can create a more efficient and transparent supply chain that benefits everyone involved.

DAOs can use smart contracts to automate many supply chain processes, such as payment processing and quality control. By ensuring that all participants are compensated fairly and that all products are produced in a sustainable and ethical manner, DAOs can create a more equitable and sustainable industry.

DAO-Based Funding for Hemp-Related Projects

Another advantage of DAO technology is its ability to enable DAO-based funding. DAOs can raise capital from a decentralized network of participants, without the need for traditional banks or investors. This can help support hemp-related projects, such as research into new hemp-based products or the development of sustainable farming practices.

DAO-based funding can also help create a more democratic and transparent industry. By enabling anyone to participate in funding decisions, DAOs can ensure that the interests of all stakeholders are taken into account.

Enhancing Hemp Research with DAO Technology

Hemp research is critical to the development of new hemp-based products and the improvement of farming practices. DAO technology can help enhance hemp research by enabling decentralized funding and collaboration.

DAOs can raise funds for research projects and enable researchers to collaborate on a decentralized network. This can help accelerate the pace of innovation in the hemp industry and create new opportunities for farmers and entrepreneurs.

DAO-Based Quality Control and Certification

Quality control and certification are critical to ensuring the safety and efficacy of hemp products. DAO technology can help create a more transparent and trustworthy certification process by using smart contracts to automate quality control and certification.

By using DAO-based quality control and certification, the industry can ensure that all products meet the highest standards of safety and efficacy. This can help build trust with consumers and regulators and create a more sustainable and profitable industry.

The Role of DAO in Hemp Legalization Efforts

The hemp industry is facing many regulatory hurdles, including the need for legalization in many jurisdictions. DAO technology can play a critical role in hemp legalization efforts by enabling decentralized advocacy and lobbying.

DAOs can raise funds to support legalization efforts and enable activists to collaborate on a decentralized network. This can help create a more effective and sustainable advocacy effort that can help ensure the legalization of hemp in all jurisdictions.

DAO and the Future of the Hemp Industry

DAO technology is still in its early stages, but it has the potential to transform many industries, including the hemp industry. By enabling decentralized governance, smart contracts, and DAO-based funding and quality control, DAOs can help create a more sustainable and equitable industry that benefits everyone involved.

Conclusion: The Promising Future of DAO and Hemp

The hemp industry is facing many challenges, but DAO technology has the potential to address many of these challenges and create a more sustainable and equitable industry. By enabling decentralized governance, smart contracts, and DAO-based funding and quality control, DAOs can help create a more transparent and trustworthy industry that benefits everyone involved.

As the technology continues to evolve, we can expect to see more use cases for DAOs in the hemp industry, including innovation in product development, more efficient supply chain management, and more effective advocacy and lobbying efforts. The future of the hemp industry is promising, and DAO technology will play an important role in its continued growth and success.

By Ivan Cryptoslav

10mCreated 1yr ago, last updated 1w agoCoinMarketCap Alexandria takes a look at a promising layer-1 blockchain. Grab a blanket if you’re scared of ghosts and spooky stories because we’re focusing on Fantom today!

What Is Fantom?

Fantom is a decentralized, permissionless, open-source layer-1 blockchain for decentralized applications (dApps) and one of Ethereum’s rivals, claiming greater scalability and low-cost transactions.Fantom grew in popularity in late 2021/early 2022, as prolific developer Andre Cronje announced a project built initially on the Fantom blockchain, causing a rush of assets into Fantom protocols.

However, the subsequent failure of the project to live up to the hype, coupled with Cronje’s decision to leave the industry — and subsequently the current bear market drawdown has hit FTM extra hard. The token is down over 90% since hitting highs in mid-January 2022.

Fantom has been live since December 2019 and attempts to resolve the blockchain trilemma through its innovative architecture, which combines scalability, security and decentralization.Its architecture is based on a single consensus layer integrating several execution chains. This consensus layer – Lachesis – has been developed by the Fantom Foundation as the base layer for its Lachesis Protocol, Fantom’s version of the Ethereum Virtual Machine (EVM).It uses Directed Acyclic Graph (DAG) technology to improve the slow transaction finality and high transaction fees of traditional Proof-of-Work blockchains like Ethereum.The first layer on top of Lachesis is an EVM-compatible smart contract platform called Opera. In contrast to Ethereum, where gas wars can lead to exorbitant transaction fees or long waiting times for transaction settlement, a smart contract interaction on Fantom has a transaction finality of one second and costs a fraction of a cent.Subscribe

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How Does Fantom Work?

Fantom uses a consensus mechanism called Asynchronous Byzantine Fault Tolerance (aBFT), allowing it to achieve high throughput and low fees while maintaining scalability and security.In Fantom’s aBFT consensus mechanism, nodes can process transactions asynchronously without having a designated leader. The Lachesis Protocol has a fault tolerance of one-third, meaning 67% of nodes have to validate a transaction to settle it.Its near-instant finality of one second contrasts the block confirmation time of proof-of-work blockchains (12-14 seconds for Ethereum) and allows Fantom to operate in a faster and more scalable way. Lachesis acts as the settlement layer, which additional layers can be added on top of. The first – Opera – is a proof-of-stake (PoS) blockchain that is EVM-compatible and uses the Lachesis validator set for approving transactions.Opera is also home to Fantom-native decentralized finance (DeFi) applications, as well as those that have expanded from Ethereum to Fantom such as SushiSwap, Curve and Yearn Finance.Its FTM token is used for staking, governance, payments and fees, with a total supply of 3.175 billion FTM. Users can stake FTM for 4% APY or choose Fantom’s Fluid Rewards and lock up their FTM for up to 12% APY. Vesting also plays an important role in some of the Fantom DeFi protocols, as we will see later.

How To Buy Fantom

You can buy Fantom (FTM) on any of the exchanges listed on their respective pages. Here is our step-by-step demonstration on how to buy FTM on Binance.

1. Open Binance and log in to your account.

Create an account if you do not yet have one and pass the KYC verification to be able to buy and trade cryptocurrencies. Choose one of the circled options in the screenshot: buy crypto if you don’t have any cryptocurrencies in your account yet or trade if you want to swap another cryptocurrency for FTM.

2. Select FTM from the dropdown menu.

If you want to buy FTM with fiat currency, select one of the options from the dropdown menu. If you want to purchase with your credit card, select the option and proceed to the next menu, where you have to add your credit card information and pay.

3. Add a credit card and process the transaction.

If you want to swap another cryptocurrency for FTM, head to trade and select convert from the dropdown menu. You will see the following option, where you have to choose which coin you want to swap for FTM (in this case USDT).

Where To Buy Fantom (FTM)

You can buy FTM from different centralized exchanges and decentralized exchanges like Binance, FTX, Coinbase, Kraken, Huobi, Gemini, KuCoin, Bitfinex, Gate.io, SushiSwap, 1inch Exchange, Poloniex and others.

Fantom Wallets

There are several wallet options for the Fantom blockchain.

Fantom Wallet (fWallet)

The Fantom Wallet (fWallet) is Fatom’s official web-based wallet. You can send, receive, and stake FTM tokens and other tokens like wrapped FTM and staked FTM. It also supports ERC-20 and BEP-20 tokens.

Metamask

Metamask is the most popular web-based wallet. It serves the Fantom blockchain and other popular blockchains like Ethereum and BNB Chain. With Metamask, you can also buy, store, send, and swap FTM.

Coinbase Wallet

The Coinbase Wallet is the non-custodial wallet of the Coinbase exchange. It has the same functionality as the other wallets and also supports other blockchains.

DeFi on Fantom

Despite the strong competition in the alternative layer-one blockchain space, Fantom has established itself as a legitimate contender thanks to its strong focus on DeFi use cases.This is particularly due to Yearn Finance founder Andre Cronje, who is also a technical advisor to the Fantom Foundation. Cronje has been instrumental in advising and expanding Fantom’s multi-chain development and has helped with launching its bridge to Ethereum.

At the beginning of 2022, Cronje announced that he and Daniele Sestagalli were working on a new product on Fantom. Cronje announced as much in a tweet on New Year’s Day:

Although details still have not been revealed as of February, the project is rumored to be a collaboration of the two prolific DeFi developers.

It could involve one or several of the protocols led by Sestagalli, such as Abracadabra Money and Popsicle. Sestagalli is the self-proclaimed leader of “Frog Nation,” a crypto-native movement focused on preserving decentralization in DeFi. He announced the collaboration on his Twitter. However, the project is up in the air after one of Sestagalli’s biggest projects, TIME, was exposed to having a convicted fraudster as CFO. Although 0xsifu (aka Michael Patryn or Omar Dhanani) was voted out as the protocol’s CFO, Andre Cronje publicly vowed to continue building with Sestagalli, no news about their cooperation has been announced.The project that Andre was working on was Solidly Exchange, a protocol-to-protocol exchange running on an automated market maker (AMM) model. The hype surrounding this prolific launch resulted in a race amongst Fantom DeFi protocols to accumulate TVL on Fantom — in a bid to obtain a share of future Solidly token. DAOs like veDAO and 0xDAO were formed just to accumulate funds. TVL grew from $3.95B at the start of 2022 to over $8B in about three months.In a move that caught the space by surprise, shortly after the launch of Solidly, Cronje announced that he is leaving the industry. Unsurprisingly, SOLID crashed, prompting calls of rug pull by crypto users speculating on the token and participating protocols.

Total Value Locked on Fantom

The TVL on Fantom exploded in the winter of 2021 when DeFi applications on Fantom grew in popularity. It multiplied from under $2B to over $5B and peaked in January 2022 at $8.19B, according to DeFi Llama, an analytics site. The total value locked on Fantom now sits at $783M after the Solidly hype died and the overall crypto market entered a bear phase.

The Top 10 DApps by TVL on Fantom

According to DeFi Llama, there are 6 Fantom-native DApps among the top 10 by TVL and 4 cross-chain DApps. The top 10 DApps by TVL on Fantom at the time of writing are:

The Top DeFi Projects on Fantom

Fantom has a well-developed ecosystem with dApps mostly focusing on DeFi applications. Most of the total value locked on Fantom comes from DeFi projects. Here are some of the top DeFi projects on Fantom:

SpookySwap
SpiritSwap
Beethoven X
QiDao
Geist Finance
Tarot Finance
Spartacus
PaintSwap

Decentralized Exchange (DEX) on Fantom

Spookyswap

Spookyswap is an automated market-making DEX based on the BOO token. It is a partner of Popsicle Finance, the money market founded by Daniele Sestagalli. Spookyswap provides the classic functions of a decentralized exchange like token swaps, yield farming, single-staking pools, but also NFTs and a bridge.Token swaps are charged at 0.2% per swap. 0.17% go to liquidity providers and 0.03% to BOO stakers. Users can stake their BOO in single-staking pools to earn more BOO and receive xBOO, which can, in turn, be staked to earn other tokens like wFTM.Spookyswap also offers a bridge to and from several other blockchains like Ethereum, BSC, Polygon, Avalanche, Arbitrum, Harmony, Cronos, and UEC. Finally, the exchange released two sets of NFTs – Magicats and official Spookyswap NFTs – that contribute to the Spooky economy by earning royalties that go into buying back BOO.

SpiritSwap

The second most popular DEX on Fantom behind SpookySwap, SpiritSwap is based on the Uniswap constant-product AMM model and utilizes its native token SPIRIT for rewarding liquidity providers on the platform. The platform allows users to swap, provide liquidity, yield farm for rewards, lock SPIRIT to acquire inSPIRIT which can be used for governance and boosted farming rewards.

inSPIRIT can also be wrapped to winSPIRIT (locked forever) to boost farm APYs by 2.5X on Grim Finance and Liquid Driver. The total supply of SPIRIT is 1,000,000,000, of which the distribution is as follows: Farm: 81.82%; DAO: 8.18%; Development: 7.50%; Airdrop: 2.5%.

Beethoven X

Beethoven aims to be a “one-stop decentralized investment platform” on Fantom. It is built on Balancer V2 and calls itself the “first next-generation AMM protocol on Fantom.” Beethoven offers different money market products like weighted investment pools, stable pools, and token swaps.With weighted investment pools, users can collect fees from traders rebalancing their portfolios by following arbitrage opportunities. A pool can consist of up to eight different tokens, with each token assigned a different weight based on its weight in the pool. Assets like stablecoins or synthetics with relatively little volatility are traded in the Curve-like StableSwap AMM.Moreover, Beethoven allows token launches through its Liquidity Bootstrapping Pools (LBP). An LBP Launch is similar to a crowdfunding mechanism. It allows for transparent price discovery, fair distribution of new tokens to the community, and the ability to bootstrap liquidity for new projects. Since Beethoven is permissionless, anybody can create an auction and do an LBP

Stablecoins

QiDao

QiDao is a zero-interest crypto lending protocol that offers stablecoin loans at 0% interest rates.

Lending

Geist Finance

Geist is a decentralized non-custodial liquidity market protocol, where depositors can provide liquidity to earn a passive income, and borrowers can receive flash loans or regular overcollateralized loans. It is based on the Aave money market and rivals other AMM liquidity protocols on Fantom.Geist operates without governance or ownership, meaning that it does not have a protocol treasury. 50% of protocol revenue is redistributed to GEIST stakers.

Liquidity miners on Geist receive rewards with a three-month vesting period, which can be dodged by paying a 50% penalty on claimed rewards. Penalty fees are subsequently redistributed to stakers. Users who vest their GEIST also receive protocol fees from token swaps.

A unique feature of Geist is its generous airdrop allocation (20%). Airdropped GEIST is vested linearly over one year and can be unvested in the same way as staked tokens (applying the penalty). Airdrops have so far been provided to the Aave, Ellipsis and LobsterDAO communities.

Tarot Finance

Tarot is another decentralized lending protocol, where lenders and borrowers interact in isolated lending pools (see a pattern here?).

It is essentially a clone of several of the previously mentioned protocols, as Tarot provides the same non-custodial, permissionless lending and borrowing. In addition, users on Tarot can also engage in leveraged yield farming.

Tarot rewards liquidity providers through its Tarot Vaults. Users can automatically earn rewards by providing their LP tokens in lending pools that support Tarot Vaults.

The provided liquidity is automatically staked in the vaults and generates additional rewards. Upon withdrawing the LP tokens, the liquidity is also withdrawn from the vaults. A permissionless bounty system enables reinvestment and can be initiated by anyone for the pending reward of a pool. In return, they keep a small percentage of the reward as a reinvestment bounty (1%).

Vaults

Spartacus DAO

Spartacus DAO is a decentralized reserve currency and the most popular OHM fork on Fantom. Users can bond stablecoins like DAI to mint SPA tokens and then stake these SPA tokens for additional yield. Spartacus DAO was highly popular during the boom of Olympus (OHM).

The Top NFT Marketplace on Fantom

NFTs are just as popular on Fantom as they are on other blockchains. However, Fantom NFTs are not traded on popular Ethereum NFT marketplaces like OpenSea but on native solutions.

PaintSwap

Paintswap is the top NFT marketplace on Fantom. It was first a DeFi platform that aimed to become the premier decentralized automated market maker on Fantom but has since rebranded into an NFT marketplace.PaintSwap has 2.5% service fees and offers minting tools and basic listing options for NFT creators. It also has a native token for staking called BRUSH, which is used for marketplace listing fees, NFT minting fees and collection fees.This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.

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Category: Crypto

What Is Fantom? A Guide to Fantom’s Ecosystem