Moonbeam

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Discover Moonbeam's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Moonbeam?

Moonbeam (GLMR) is an Ethereum-compatible smart contract parachain on the Polkadot network. It allows for seamless integration of Ethereum applications and decentralized finance (DeFi) projects, offering scalability, interoperability, and on-chain governance. The GLMR token is used for transaction fees, smart contract executions, incentivizing collators, and governance processes.

How is Moonbeam used?

Moonbeam (GLMR) is used for several key purposes within the Moonbeam network:

  1. Gas Fees and Transaction Costs: GLMR is used to pay for gas fees when executing smart contracts and for sending value within the network.

  2. Staking: GLMR can be staked to support the network and participate in governance. Staking allows users to vote on important network proposals and elect council members.

  3. Governance: GLMR is used for on-chain governance, enabling holders to vote on proposals and shape the direction of the network.

  1. Incentivizing Collators: GLMR is used to incentivize collators, who are responsible for producing blocks and maintaining the network's security. Collators receive a portion of the annual inflation as a reward.

  2. Network Maintenance: GLMR is used to maintain the network's parachain slot on Polkadot and to incentivize collators to provide block production services.

These uses ensure the smooth operation and development of the Moonbeam network, which aims to provide a seamless transition for developers seeking to escape the congestion and high gas fees of Ethereum.

How do I store Moonbeam?

To store Moonbeam (GLMR) tokens, you have several options:

  1. MetaMask: You can use MetaMask to connect to the Moonbeam network and store your GLMR tokens. Ensure you add Moonbeam as a custom network in MetaMask, as GLMR tokens are not ERC-20s but native protocol tokens.

  2. Ledger: Ledger supports Moonbeam (GLMR) tokens. You can add Moonbeam to your Ledger device and manage your tokens securely through Ledger Live. This allows you to receive and send GLMR tokens without connecting your device to MetaMask.

  3. Obvious Wallet: The Obvious multi-chain wallet supports storing GLMR tokens across all supported chains, including the Moonbeam chain. It allows you to securely control your private keys and seed phrases, and manage your tokens via your mobile device.

  1. Staking Directly on Moonbeam: You can also store and stake your GLMR tokens directly on the Moonbeam network, earning staking rewards. This can be done using the Moonbeam dApp, which guides you through the process of staking your tokens.

How to buy Moonbeam?

To buy Moonbeam (GLMR) tokens, follow these steps:

  1. Choose an Exchange: Select a reputable exchange that supports GLMR trading. Options include Kraken, Uphold, KuCoin, and Pionex.

  2. Create an Account: Sign up for an account on the chosen exchange. Verify your email address and identity as required.

  3. Deposit Funds: Deposit funds using a debit card, credit card, wire transfer, or Bitcoin. Ensure the exchange supports your preferred payment method.

  1. Buy GLMR: Use your deposited funds to purchase GLMR tokens. You can do this directly on the exchange or through a decentralized exchange (DEX) like StellaSwap.

  2. Transfer to Wallet (Optional): If you want to store your GLMR tokens securely, transfer them to a wallet that supports the Moonbeam network, such as MetaMask.

For US residents, some exchanges like Kraken and Pionex offer specific methods for buying GLMR, including debit card and bank wire options.

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History of Moonbeam

Moonbeam, a smart contract platform, was founded in 2019 by Derek Yoo, the CEO of PureStake. Initially, the platform quietly emerged in January 2020, focusing on facilitating cross-chain communication between different blockchains. However, it remained relatively obscure until July 2020, when Yoo won a grant from the Web3 Foundation, which significantly boosted the platform's development.

Following this grant, Moonbeam launched its Testnet in September 2020. The platform gained momentum in November 2021 when it secured a Polkadot parachain slot. This milestone marked a significant step in Moonbeam's growth, as it enabled the platform to leverage Polkadot's interoperability features and expand its ecosystem.

Moonbeam officially went live on Polkadot on January 11, 2022, after a successful migration from its Testnet. This launch marked the beginning of Moonbeam's active operations, with its native token, Glimmer (GLMR), serving various functions such as transaction fees, network security, and on-chain governance.

Since its launch, Moonbeam has continued to grow, with a rapidly expanding ecosystem of over 300 applications and a strong community of developers and users. The platform's focus on interoperability and its Ethereum-compatible environment have made it an attractive choice for builders and users alike.

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How Moonbeam works

Moonbeam (GLMR) is a smart contract platform that allows developers to build applications that operate across multiple blockchains. Here's how it works:

Key Components
  • Glimmer (GLMR) Token: The native token of the Moonbeam ecosystem, used for various purposes such as:

    • Transaction Fees: GLMR is required to pay for transaction fees on smart contracts.
    • Staking: Token holders can stake GLMR to support collators, who maintain full nodes and ensure the network's security.
    • Governance: GLMR holders can participate in governance processes, including voting on network proposals and electing council members.
  • Collators: These are nodes that produce blocks and support block liveness on the network. They receive a reward of one-fifth of the annual inflation for their services.

  • Relay Chain: Collators offer blocks to validators on the relay chain for finalization.

Staking and Rewards
  • Staking Process: Users can stake GLMR tokens using the Moonbeam dApp. They need to connect their EVM wallet, select the Moonbeam network, and delegate their tokens to a collator. The minimum delegation requirement is 50 GLMR tokens.

  • Rewards: The top 300 delegators receive staking rewards. The rewards are distributed based on the delegation amount and the collator's performance.

Token Economics
  • Supply: The total supply of GLMR is uncapped, with an initial supply of 1 billion tokens and an annual inflation rate of 5%.

  • Token Burning: When GLMR is used for transaction fees, 80% of the tokens are burned, reducing the supply and creating a deflationary force. The remaining 20% goes into the on-chain treasury for governance purposes.

Cross-Chain Functionality
  • Polkadot Integration: Moonbeam is an Ethereum-compatible smart contract parachain on the Polkadot network, enabling seamless interactions between different blockchains.

  • Cross-Chain Transfers: Moonbeam allows for cross-chain transfers between Kusama and Polkadot using its software development kit (SDK).

DeFi Ecosystem
  • DeFi Projects: Moonbeam supports a robust DeFi ecosystem, offering a range of decentralized finance applications with full Ethereum compatibility and cross-chain features.

  • Ethereum Compatibility: Developers can effortlessly migrate and deploy existing Ethereum dApps using familiar tools.

  • Capabilities: The platform offers a diverse array of DeFi projects, including AMMs and on-chain derivatives, and supports the development of new projects through its grant application process.

Overall, Moonbeam provides a comprehensive platform for building and deploying decentralized applications across multiple blockchains, leveraging the strengths of both Ethereum and Polkadot.

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Moonbeam's strengths

Moonbeam (GLMR) has several strengths that contribute to its position as a leading EVM-compatible smart contract platform built on Polkadot:

  1. EVM Compatibility: Moonbeam extends the capabilities of the Ethereum Virtual Machine (EVM) to Polkadot, allowing for the creation of novel hybrid chain solutions that leverage the benefits of both ecosystems.

  2. Most Popular XCM Parachain: Moonbeam's XCM channel with Acala network is the most utilized among all Polkadot network XCM channels, indicating its prominent role in facilitating cross-chain communication.

  3. Largest Base of Developers: Moonbeam has the largest number of developers among all Polkadot projects, with approximately 200 out of 621 full-time developers working on the platform. This intellectual dominance positions Moonbeam as a leader in the Polkadot ecosystem.

  1. Percentage of GLMR Staked: The ratio of the circulating token supply that is committed to the network has been steadily growing, indicating strong support from the community.

These strengths highlight Moonbeam's ability to bridge the gap between Ethereum and Polkadot, providing a robust platform for developers and users alike.

Moonbeam's risks

Moonbeam (GLMR) faces several risks that investors should consider:

  1. Loss of Prominence in DOT Ecosystem: Moonbeam competes in the Polkadot ecosystem, where other chains may outperform it, leading to a shift in developer attention and resources.

  2. Aggressive Vesting Schedule: The token's vesting schedule is aggressive, with a significant increase in circulating supply every three months. This could lead to inflation and downward pressure on the price, especially during bear markets.

  3. Market Volatility: The cryptocurrency market is highly volatile, and GLMR is not immune to these fluctuations. Price predictions from various sources indicate a mix of bearish and bullish sentiments, highlighting the uncertainty.

  1. Risk of Abandonment: Like many blockchain projects, Moonbeam faces the risk of abandonment by developers if sentiment shifts towards other projects.

These risks should be carefully evaluated by investors considering Moonbeam as an investment opportunity.

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Did Moonbeam raise funds?

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Moonbeam’s team

  • Derek Yoo: CEO & Founder, previously worked as CTO and CPO at Fuse and CEO of PureStake.
  • Stefan Mehlhorn: COO, specialist in managing early-stage companies, previously worked with Samsung Pay.
  • Aaron Evans: Team member.
  • Thiago de Castro Neves: Team member.
  • Juno S.: Team member.

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