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In this post of Pooyan Music, we will review the Moonbeam network and its GLMR coin. The growth of Moonbeam network in the last year has been unparalleled.
Moonbeam GLMR has dropped 98% since its peak, but the network is still growing.
Moonbeam’s current coin price is still more than 75% higher than last year’s $0.25 ICO price.
Observers say Moonbeam’s compatibility with Ethereum is “unparalleled”.
Glimmer (GLMR), the native symbol of the Moonbeam ecosystem, has fallen 98% since its peak in January. Despite the sharp decline, the Moonbeam network itself still gained some traction.
Over the past week, the GLMR token has been trending on CoinGecko, with over 56,000 users monitoring its performance. We also take a look at this emerging ecosystem in this digital currency article.
Moonbeam describes itself as a smart contract platform for cross-chain applications that unifies the functionality of Ethereum, Polkadot and beyond. This means that developers can create their own decentralized applications or dApps on Moonbeam that are compatible with Ethereum.
They can use the Ethereum Virtual Machine (EVM), the heartbeat of the Ethereum network, which allows developers to create smart contracts and dApps in a computer language called Solidity. Users do not need to reconfigure or rewrite code to achieve this goal.
Founded in 2019 by Derek Yu, CEO of crypto infrastructure platform PureStake, and Stefan Mehlhorn, Moonbeam launched as a parachain on Polkadot last year. The network operates on the Proof of Stake (DPoS) consensus mechanism.
Parachains are independent blockchains on Polkadot, the so-called blockchain of blockchains. They are connected to the Polkadot relay chain and can communicate with other chains inside and outside Polkadot. They have the same security and scalability as Polkadot.
Blockchain networks are usually developed with proprietary features. Moonbeam comes to ensure that transactions can be done across the network. It is a bridge that allows users to work on both Ethereum and Polkadot blockchains.
Glimmer or GLMR is a native sign of the Moonbeam ecosystem. Users need GLMR to pay transaction fees through the network and also to execute smart contracts.
GLMR is also used for governance, allowing holders to vote on important network proposals, including the election of council members. As a tool to incentivize so-called collectors to maintain full nodes, Glimmer is a token critical to keeping the Moonbeam network secure.
“The main purpose of an aggregator is to generate blocks and support the liveness of the block in the network. “From there, aggregators submit blocks to relay chain validators for finalization,” Moonbeam says on its website.
At the time of writing, there are about 93 receivers in the active collection, who receive one-fifth of annual inflation as bonuses. Moonbeam token holders, also known as agents, are rewarded for back-ups by staking at least 50 GLMR. Only the top 300 will receive betting bonuses.
Glimmer has a generic uncapped supply. However, the Moonbeam Foundation was launched with a one billion supply at a 5% annual inflation rate. According to CoinGecko, there are currently more than 422 million tokens in circulation.
Every time GLMR is used to pay transaction fees in smart contracts, 80 percent of those specific tokens are lost through “burning,” Moonbeam says. The remaining 20% goes to the chain treasury. The whole process is designed to increase the price of the GLMR token.
