What Is Glimmer (GLMR) And How Does It Work? | KuCoin Crypto Gem Observer

2022/01/10 08:00:25

The desirability of smart contracts in today’s world has made it possible for new projects to spring up with newer use cases and added utility. With Ethereum smart contracts already well-established, the likes of Glimmer have emerged with more possibilities.

Glimmer as a token for the Moonbeam ecosystem has attractive potentials that makes it worthwhile to closely examine. Moonbeam is aspirational, and it is an existing parachain on the Polkadot platform with Ethereum network compatibility. Newer projects can be built on Moonbeam by developers, and these can go live on the Polkadot ecosystem in a seamless manner.

What is Glimmer?

Glimmer (GLMR) is integral to the Moonbeam parachain as a utility token that will power transactions on the platform. Just as DOT is native to Polkadot, and Ether to the Ethereum blockchain, GLMR will serve similar purposes. GLMR is also positioned to be utilized for payment for transactions, staking and governance purposes.

Moonbeam operates as a decentralized smart contract ecosystem and it is structured to work with a utility token, Glimmer. GLMR is effectively central to the network’s architecture, and it undergirds the security and allied functionalities that run around the clock.

The Moonbeam ecosystem worked in sync with Moonriver at its pre-mainnet stage and are both geared towards the use of developers. Moonriver is a sister network to moonbeam with its own native token and live on Kusama. As an open platform, moonbeam will aid developers to create their Web3-based apps and standardize them before launch. Each new project launched will be able to leverage on the features of the network.

Moonbeam is designed with an active community in mind so that as developers come up with ideas for dApps, they can access grants and realize their goals. The platform is on hand to help developers every step of the way as they make progress with their projects.

How does Glimmer work?

Glimmer undergirds the Moonbeam ecosystem, and this can be seen in the facets of functionalities and day-to-day execution of transactions. By leveraging the Polkadot platform as a parachain, the Moonbeam Network has full control over its affairs and activities along with its sovereignty.

As a layer-1 blockchain, it will be able to interact with other Polkadot Parachains at no-cost or at minute charges. Interaction with other external networks is also made possible as it makes use of the strengths of the Polkadot ecosystem based on its standpoint as a parachain.

The other ramifications are further explained below:

Smart (Intelligent) Contract Execution

Smart contracts are used to drive transactions within the Moonbeam Network and the payments arising must be settled using Glimmer. Smart contracts underlie all operations on the platform, and this places this functionality at the heart of the network. Without Glimmer, these transactions cannot be paid for or activated.

Payment for Transaction

Transaction fees will arise for several activities within the platform and across-chains, necessitating settlement with Glimmer. As more transactions are settled, the utility of the token is consolidated, and its value will grow.

Staking

Staking has become a leading aspect of decentralized platforms and the Moonbeam Network is also supporting this functionality. Token holders and other reward hunters will be able to stake Glimmer for more incentives. In the process, the network also gains more vitality as transaction volumes surge.

Leadership

The value of Glimmer held will determine the weight of votes that anyone can command. The token plays an important role for introduction of proposals and to vote on the way forward as new ideas are deliberated on. Only token holders can vote.

Who created Glimmer?

There are 24 team members involved in the Project and Derek Yoo is the CEO and founder, while Stefan Mehlhorn is the COO. Alan Sapede is the VP of Blockchain Engineering for the network. Several members of the team have worked on DeFi projects in recent years, while others were early team members in other successful cryptocurrency projects that have attained global acclaim.

With a robust mix of hands -on veterans in smart contracts, process engineering, token launch, foundation governance and community organization, the team looks well-resourced to steer the project to the greatest heights possible.

What is the GLMR token and what is it used for?

Glimmer will have 1 billion tokens at launch and the project will be propelled with a 5 percent annual inflation. 1 percent of the inflation tokens will be used to settle security needs for the project as it consolidates. Grouping services for block production will also be settled from this portion to anchor the network in its daily operations.

A parachain bond reserve will be built up with 1.5 percent of the inflation tokens and committed to ensure parachain slot payment to perpetuity. A further 2.5 percent will be utilized for paying holders of wagered tokens that drive the collator selection activities.

GLMR will be utilized for day-to-day payment of transaction fees, smart contract execution as well as to give holders a right to introduce and vote on proposals on the network. The total fees generated will be segmented into 80% and 20 % respectively. 80 % will end up burned to shore up the token value ultimately, while the 20 % will be received into the treasury to allocate to projects and to incentivize activities on the network.

Closing Thoughts

The Glimmer Project has emerged to make it possible for developers to have access to an open platform where decentralized applications can be developed to respond to needs in different areas of human endeavor. Holders of Glimmer token will have the opportunity to stake it for more rewards, introduce proposals as well as to vote on ideas to optimize the project.

With its standpoint as a parachain, the network is able to leverage on the strengths of Polkadot for cross-chain interactions and optimal efficiency. With its agile design already in place, web3 proponents will find it advantageous to leverage on its features and functionalities to develop own-dApps for a seamless launch.

Finally, KuCoin will list Glimmer (GLMR) and open the GLMR/USDT and GLMR/BTC trading pairs as a world premiere on January 11th.