The Problem with Yield Farming Tokens: No Inherent Value or Sustainability
The problem with the majority of yield farming tokens is that they have no meaningful utility. Because there is no compelling reason to use or hold these tokens, people farm the tokens, sell their holdings, and move onto the next farming project.
Furthermore, since most of the projects behind these tokens are not revenue-generating businesses, it’s nearly impossible for the average farming/staking system to sustain itself over the long term.
FRMx is Different
First, FRMx it is imbued with many valuable utilities, and it grants its holders governance over the FRMx and FRM staking regimes. This means that FRMx holders will inform, shape and vote on the structure of upcoming FRM and FRMx staking rounds.
Moreover, FRMx is sustainable. Remember the FRM we buy back off the secondary market from the revenue generated from our Staking-as-a-Service business? So far we have bought back over 1,000,000 FRM and counting…
This FRM will be used to create a sustainable ecosystem where it can be staked to earn FRMx, and that FRMx will be returned to the ecosystem as rewards for subsequent staking rounds. To add more sustainability to the system, we can simply buy back FRMx and use that as rewards for staking FRM. As we generate more revenue from our upcoming products like our P2P fiat/altcoin exchange platform, our cross-chain DEX, and the Foundry incubator, the system will create a positive feedback loop, ensuring that FRMx is readily available for farming and staking for years to come.
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