The FUNToken ecosystem has grown remarkably in the past years as the utility surrounding the digital currency has created a thriving community of fun lovers around it. The FUNToken protocol is designed for all things gaming, and it facilitates gaming experiences in a transparent, provably fair and widely used mechanism for funding and integrating disparate gaming opportunities.
While the token has served its purpose in a good way, its underlying blockchain infrastructure has limited its growth capabilities in many aspects. The FUN token was launched as an ERC-20 token running on the Ethereum blockchain. The inherent challenges of high latency and gas costs on Ethereum caused by congestion and underlying architectural issues have provided an obstacle to achieving scalability, and limited the usability of the FUN token for its wide range of intended gaming activities.
As a solution to this problem, re-engineering the gaming capabilities of the ecosystem for the future, a new layer-two token dubbed XFUN is being launched on the Polygon blockchain.
XFUN token, a wrapped version of the FUN token
XFUN is similar to a wrapped version of FUN, pegged 1:1, that will usher the FUNToken ecosystem into the next level of growth. As a layer-two token, XFUN is built on the Polygon Network, and gets to benefit from the high performance, lower latency and lower transaction costs that the blockchain offers.
XFUN will co-exist with FUN in the gaming ecosystems that FUNtoken supports including dPlay Casino. Both tokens retain their utility but XFUN will be integrated into a number of new gambling products that will be launched over the course of the coming months, significantly increasing opportunities and utility for the token. While only FUN will be tradable on exchanges, XFUN has a number of unique propositions that will enhance transparency in the gaming and gambling world and increase trust in this growing blockchain use case.
The utility of XFUN in gaming protocols is designed to be non-custodial. This is a paradigm shift from traditional gaming platforms where gamers' funds are held in an account in control of the operator. XFUN will be securely stored in a non-custodial wallet under players’ control. Funds required to place a Casino bet or other form of online gaming or gambling activity may remain in the player’s wallet under escrow during a specific gaming session.
XFUN infrastructural features and deflationary design
The XFUN Token will be released concurrently with a number of key infrastructure features including the XFUN Wallet, and XFUN Bridge.
- XFUN Wallet: This is designed as a non-custodial vault to hold both XFUN and FUN tokens respectively. The wallet will have the capability to facilitate the swapping of one token to the other, while integrating Fiat payment options enabled by third party processors. The wallet will also support KYC registrations, should a particular gaming operator require it.
- XFUN Bridge: The XFUN Bridge will provide a mechanism for exchanging FUN to XFUN and the reverse.
The new FUNToken platform incorporating XFUN will operate via a dual token deflationary model. To obtain XFUN, FUN tokens from the Ethereum blockchain must be swapped into XFUN using the XFUN Bridge. This transaction locks FUN in an escrow account and correspondingly causes the minting of XFUN on the Polygon Network.
XFUN and FUN are pegged to one another at a ratio of 1:1. 1 XFUN will always = 1 FUN. FUN that are escrowed in exchange for XFUN are removed from the trading supply of FUN and effectively reduce the circulating supply, a deflationary model that is complementary to the supply cap of FUN tokens.
As gaming activities using XFUN increase the demand for FUN to be swapped to XFUN will increase, creating a self-sustaining reduction of the total FUN tokens in circulation. This can only be positive for token holders, as scarcity economically boosts price valuation.
Bootstrapping the new XFUN token ecosystem
Through the existing partnership with FreeBitco.in, the largest BTC faucet in the world with a player base in excess of 46M players, FUNToken has the remaining piece of the puzzle to onboard the next generation of gamers.
FreeBitco.in currently has over 177,000 FUNToken holders through its Premium membership program. These players will be encouraged to move their custodial FUN to XFUN on-chain. The FUN Token mainnet has about 85,000 holders so when XFUN is launched and FreeBitco.in premium players brought on board the XFUN token will have over 253,000 active users. This number is expected to grow rapidly and future-proof the FUNToken ecosystem with active users playing games fuelling the utility.
With Polygon Network providing scalability, low latency and lower transaction fees, the product offerings of online gaming and betting platforms are set to be redefined, as sustainability and usability will now become the watchword. With the advanced token features, user friendly bridge and swapping model of the XFUN Bridge system, the attainment of a dual token deflationary ecosystem is well on track to reality.