Moonbeam is one of the parachains, allowing decentralized applications from the Ethereum blockchain to be easily transferred to the Polkadot ecosystem without requiring significant code rewrites. It is a blockchain platform for smart contracts designed specifically for developers.
Moonbeam has been built using the Rust programming language, along with the Substrate framework. This parachain serves as a bridge, connecting Ethereum and Polkadot and providing interoperability between the two. As a result, developers who have deployed their products on Solidity can seamlessly integrate them into the more scalable Polkadot network, using familiar and convenient tools.
Explore the inner workings of Moonbeam. Source: moonbeam.network.
Glimmer (GLMR) is the utility token of the Moonbeam network, which was launched on January 15, 2022. GLMR holders retain the token to access platform features.
GLMR token is used for:
- calculating gas fees for executing smart contracts;
- paying transaction fees;
- rewarding users responsible for supporting Polkadot's parachain;
- network governance mechanism;
- enhancing mechanisms required for creating decentralized node infrastructure;
- security purposes.
GLMR Tokenomics
The token's market capitalization is $223.8 million. There are 606.3 million GLMR tokens in circulation, with a maximum supply limited to 1 billion tokens.
The initial Glimmer issuance took place during a private token distribution called Take Flight, allocating 9.8% of the total coins. A large portion of GLMR (16.7%) is reserved in a long-term protocol for the development of the Moonbeam project ecosystem. 15% of tokens are allocated for crowdfunding the launch of a parachain in the Polkadot network. Seed and strategic funding uses 14% and 12% of GLMR, respectively.
A chart illustrating the token allocation of GLMR. Source: moonbeam.foundation.
The token's annual inflation is 5%, with:
- 1% of this amount allocated as incentives for collators (Polkadot system participants who support parachains by collecting transactions and submitting them to validators);
- 1.5% reserved for providing unlimited parachain slot support through network funds;
- 2.5% intended for users who stake GLMR tokens to accelerate the collator selection process.
Moonbeam's inflation goal is to ensure network security by financing the parachain slot and incentivizing transaction collectors to support the network.
80% of fees required for transaction payments and smart contract execution are burned, contributing to deflation and increasing the value of GLMR tokens. 20% of the fees go to the network treasury, which is necessary for financing solutions related to network management.
A deep dive into Moonbeam
Moonbeam was founded by Derek Yoo, who also serves as the CEO of PureStake, a platform providing blockchain infrastructure. The Chief Operating Officer is Stefan Melhorn, who has previously managed projects such as Samsung Pay, LoopPay, Permessa, and others.
Moonbeam is a specialized Polkadot parachain connected to an Ethereum RPC (Remote Procedure Call) node. This type of computer server allows reading data in the blockchain and sending transactions to various networks. Thanks to this node, Moonbeam displays Ethereum users' accounts, keys, and other constituent elements on its platform.
The parachain simplifies the deployment of Ethereum-based applications in the Polkadot network. Developers can create smart contracts in all programs that compile into Solidity bytecode without the need to modify content.
In addition to the Substrate framework-based API, the platform offers compatibility with other toolsets, such as MetaMask, Hardhat, Waffle, Remix, and Truffle.
Finally, the Moonbeam network can integrate the DOT token, any ERC-20 tokens, as well as infrastructure services like Chainlink and TheGraph.
