Moonbeam is an Ethereum Virtual Machine (EVM)-compatible blockchain that operates as a parachain on the Polkadot network. Being EVM-compatible allows Ethereum-based applications to deploy on Moonbeam.
The network offers developers features, including deploying Solidity smart contracts, Web3-compatible API, oracle data feeds, and Ethereum network bridges.
GLMR is the utility and governance token of Moonbeam, used for the following use cases:
- Transaction Fees: Users can pay gas fees and execute smart contracts with GLMR.
- Staking: Users can stake GLMR to become a validator or delegate to participate in the network consensus and are rewarded with GLMR.
- Governance: Enables GLMR token holders to nominate council members and participate in voting on the network.
- Liquidity Mining: Provide liquidity on Decentralized Exchanges (DEXes) built on the Moonbeam blockchain to earn a portion of the exchange fees.
Moonbeam consists of the following major components working in conjunction:
- Polkadot: Polkadot facilitates cross-chain communication and interoperability by connecting multiple blockchains into one unified network. Moonbeam is the Polkadot ecosystem version of Moonriver (MOVR) in the Kusama ecosystem.
- Parachains: Parachains are independent blockchains (Shards) that are able to connect to Polkadot.
- Crowdloans: It is a method for projects to fundraise for a parachain slot on the Polkadot network. Users temporarily lock their DOT in exchange for a reward from the project team, often in the form of the project's native tokens.
- Slot Auctions: For projects to operate as a parachain on Polkadot, they would have to win a slot in the parachain auction. Moonbeam won the second slot auction via a crowdloan, thus securing a Polkdaot parachain for 96 weeks starting from December 17 2021.
The project raised ~36MM DOT tokens from over ~200K contributors in the Moonbeam crowdloan for the Polkadot parachain slot auction.
As at January 11th 2022, the total token supply of GLMR is 1,000,000,000. GLMR has an uncapped maximum token supply, and an annual inflation rate of 5%.
Learn more about the token distribution of GLMR here.