The Complete Guide to Fantom's FTM Token

The FTM token serves as the foundational asset of the Fantom network, a high-performance, decentralized blockchain platform. Designed for speed, security, and decentralization, Fantom leverages a unique asynchronous Byzantine Fault Tolerant (aBFT) consensus mechanism to achieve transaction finality in under one second with minimal costs. This guide provides a comprehensive overview of the FTM token, its utilities, and how to interact with the ecosystem.

Understanding the FTM Token

FTM is the native cryptocurrency of the Fantom Opera network. It fulfills several critical functions within the ecosystem, including paying for network fees, securing the network through staking, and enabling on-chain governance. Transactions on Fantom are exceptionally efficient, typically costing less than one cent to execute.

FTM Token Standards

The FTM token exists in multiple forms to ensure compatibility across different blockchain environments:

• Mainnet FTM: The native token used for all operations on the Fantom Opera mainnet, including fees, staking, and governance.
• ERC-20 FTM: A wrapped version of the token on the Ethereum blockchain, allowing it to be used within the Ethereum ecosystem.
• BEP-2 FTM: A token standard on the Binance Chain, facilitating trading on the Binance DEX (not to be confused with the Binance Smart Chain).

It is crucial to send each token type only to wallets supporting that specific standard to avoid permanent loss of funds.

Setting Up and Using Wallets

Storing and managing FTM tokens requires a compatible wallet. The ecosystem supports a range of options, from browser extensions to hardware devices.

Configuring MetaMask for Fantom

MetaMask is a popular web3 wallet that can be easily configured to interact with the Fantom network and its vast array of decentralized applications (dApps).

1. Open your MetaMask extension and click the network selection dropdown (defaults to "Ethereum Mainnet").
2. Select "Add network" and choose Fantom from the list of available networks.
3. Click "Approve" to add the Fantom network configuration.
4. You can now switch to the Fantom network directly from the MetaMask dropdown menu.

For wallets that do not natively support Fantom, you may need to add a custom RPC endpoint.

Securing Assets with a Ledger Hardware Wallet

For enhanced security, you can manage your FTM tokens using a Ledger hardware wallet.

1. Ensure your Ledger Live application and device firmware are up to date.
2. In Ledger Live's settings, enable "Developer Mode" under "Experimental features."
3. Go to "My Ledger," search for the Fantom app, and install it.
4. To connect to Fantom's native fWallet, visit the platform, select "Ledger" as your wallet type, and choose your device from the list.

You can also connect your Ledger to MetaMask for a familiar interface while maintaining hardware-level security. Use the "Connect hardware wallet" option in MetaMask and follow the prompts to link your device.

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Creating and Accessing a Software Wallet

Fantom's official fWallet provides a user-friendly interface for creating and managing a software wallet.

To create a new wallet:

1. Navigate to the fWallet website.
2. Click "Create one now" and then "Generate mnemonic phrase."
3. Crucially, write down the 12 or 24-word seed phrase on paper and store it in a secure, offline location. Never store it digitally.
4. Confirm your phrase by entering the words in the correct order to complete the wallet creation.

For easier future access, you can download an encrypted keystore file.

5. Click your wallet address and select the download icon.
6. Set a strong password (using all available characters is recommended) and download the file.

To access an existing wallet:

1. On the fWallet login page, select the "Software" option.
2. Choose your access method: Keystore File, Mnemonic Phrase, or Private Key.
3. Follow the on-screen instructions to upload your file or enter your credentials to regain access.

Sending FTM Tokens

Transferring FTM is straightforward within the fWallet interface:

1. From the left-hand menu, click "Send."
2. Select FTM as the token, enter the amount, and paste the recipient's wallet address.
3. Click "Continue" and confirm the transaction details to execute the transfer.

Staking and Earning Rewards

Staking FTM is a core utility of the token, helping to secure the network while allowing holders to earn rewards.

How to Stake FTM

1. In the fWallet, navigate to the "Staking" section.
2. Under the "Stake" tab, enter the amount of FTM you wish to stake and click "Select validator."
3. Choose "Create a new delegation" and select a validator from the list. Consider their commission rate, maximum APR, and available space.

4. Choose your staking style:

   • Locked Stake: Lock your tokens for a period between 14 and 365 days to earn a higher APR, up to approximately 6%.
   • Stake As You Go: Stake without a lock-up period for a base APR of approximately 1.8%, offering more flexibility.
5. Confirm the transaction to delegate your tokens.

Managing Existing Delegations

You can add more FTM to an existing delegation by selecting "Top up an existing delegation" in the staking menu. The new tokens will adopt the same lock period as the existing delegation.

To extend the lock period on a delegation for higher rewards:

1. Go to "Staking" and find your delegation under "My Delegations."
2. Click "Manage Lock" and then "Update delegation lock."
3. Use the slider to choose a new lock period and confirm the transaction.

Unlocking and Unstaking FTM

You can unlock staked FTM before the lock period ends, but this incurs a penalty, reducing your earned rewards. The process of unlocking begins a 7-day unbonding period before funds are available.

1. In the "Staking" section, navigate to the "Unlock" tab.
2. Enter the amount you wish to unlock and confirm the transaction, acknowledging the potential penalty.

To fully unstake and withdraw your tokens after the unbonding period:

1. Go to the "Unstake" tab within the "Staking" section.
2. Enter the amount to unstake. If tokens are locked, you must unlock them first.
3. Confirm the transaction. Your tokens will be available in your wallet after 7 days.

Participating in On-Chain Governance

FTM stakers have the right to participate in the governance of the Fantom network, voting on proposals that shape its future.

Voting on Proposals

1. Click "Governance" in the fWallet menu to view active proposals.
2. Select a proposal and click "Learn more." It is essential to read the associated discussion on the Fantom Forum to make an informed decision.
3. Choose the delegation you wish to vote with.
4. Use the slider to indicate your level of agreement with the proposal, from 0% to 100%.
5. Confirm your vote. Proposals require a minimum turnout and agreement percentage to pass.

Creating a Governance Proposal

Community members can create proposals for network changes.

1. In the "Governance" section, click "Create proposal."
2. Fill in the proposal title, description, voting options, and parameters like minimum participation and agreement.
3. Pay the 100 FTM proposal fee and confirm the transaction. If your description is too long, you can write a post on the Fantom Forum and link to it in your proposal.

Primary Use Cases of the FTM Token

• Network Fees: All transactions and smart contract deployments on Fantom require a small fee paid in FTM, which helps prevent spam and network attacks.
• Securing the Network: The proof-of-stake consensus mechanism relies on users staking their FTM to validate transactions and create new blocks, earning rewards for their contribution.
• On-Chain Governance: Staked FTM tokens represent voting power, giving holders a direct say in the protocol's development and future upgrades.
• Payments: The combination of sub-second finality and ultra-low fees makes FTM a practical token for everyday payments and value transfer.

Acquiring FTM Tokens

FTM is widely available for purchase on numerous centralized (CEX) and decentralized (DEX) cryptocurrency exchanges. Popular data aggregators like CoinMarketCap and CoinGecko provide comprehensive lists of trading platforms that offer FTM.

For users looking to buy FTM directly with fiat currency, several on-ramp services allow purchases via bank transfer or credit card, depositing mainnet FTM directly to your wallet.

Frequently Asked Questions

What is the difference between mainnet FTM and ERC-20 FTM?
Mainnet FTM is the native token used on the Fantom Opera chain for staking, governance, and paying gas fees. ERC-20 FTM is a wrapped version on the Ethereum blockchain, used primarily for trading on Ethereum-based DEXs. They are not interchangeable unless bridged.

Can I lose my staked FTM if a validator misbehaves?
While a validator cannot access your funds, they can be slashed (penalized) for malicious actions like double-signing. This can lead to a small loss of your staked tokens. It is important to delegate to reputable validators.

How are the staking rewards calculated?
Rewards are proportional to the amount staked and the length of the lock period. Locking tokens for the maximum 365 days yields the highest potential APR, while flexible, unlocked staking earns a lower base rate.

What happens if I send FTM to the wrong address?
Cryptocurrency transactions are irreversible. If you send mainnet FTM to an Ethereum address (or vice versa), the funds will be lost permanently. Always double-check the receiving address and network.

Do I need to keep my wallet connected to earn staking rewards?
No. Once you have delegated your FTM to a validator, rewards accumulate automatically and do not require your wallet to be online or connected. You simply need to claim them later.

Is there a minimum amount required to stake FTM?
There is no strict minimum amount for delegating to a validator. However, running your own validator node requires a significant amount of FTM to meet the minimum stake requirement.