Karma Finance Announces Plans To Switch Networks
Expensive network fees have made it impractical for Karma Finance to implement any kind of UBI/DeFi hybrid over Ethereum.
Any kind of transaction over a blockchain network that costs more than a few cents is completely absurd.
We have, in fact, spent more than half of our budget paying Ethereum gas fees(!) Needless to say, Ethereum is not the way forward for Karma Finance.
But Ethereum Virtual Machine (EVM) is.
Moving To the Fantom Ecosystem
Karma Finance is moving to Fantom’s Opera network. It is a DAG-based permissionless smart contract platform with an exclusive aBFT consensus mechanism for enterprise-level scalability and bank-grade security. With 1–2s finality for transactions, it is about 300x faster than Ethereum. It’s an Ethereum helper, not so much a competitor, designed to take on part of Ethereum’s load to its high performance network.
Best of all, Fantoms’s fees are very reasonable. To put its fees in perspective, it would cost about $66 to deploy all of Ethereum’s 100,000 or so verified contracts on Fantom. If these same contracts were re-deployed on Ethereum today it would cost about $24 million.
Being EVM-based, Fantom uses familiar tools (such as FTMscan, built by the Etherscan.io team) and supports Ethereum’s smart contracts out of the box.
Fantom will make Karma Finance usable and, thus, a viable project.
Sushi Swap On Fantom
Less than a day ago, Sushi Swap released an alpha of a multichain implementation of its exchange. Users should be able to input a variety of tokens and exchange them for KFI with very low fees.
This should be released into production within the next couple of weeks.
As many of you know, KFI being community-funded led to Angel Liquidity Providers being gifted with a larger share of the token supply than should otherwise be had. Moving to a new network also gives us a chance to fix our token distribution.
Although more than 81% of supply is locked away (418,500 tokens), an out-sized portion of the remaining tokens are held by the top 20 holders.
We will be looking for your suggestions to help fix these numbers in a fair and equitable way so that we can move the project forward in a way that can attract new users to the platform. Some ideas:
- 2x bonus for tokens purchased on Uniswap from now until the snapshot.
- 15-day swap deadline for 100% swap. Every week after that, the amount that can be swapped decreases by 50%.
Let us know your thoughts!