What is Function X (FX)?
FX is the native token of the Function X network, which is a blockchain-based platform that aims to fill the gap between decentralized and traditional markets. Function X creates a decentralized trading system with decentralized financial assets by mirroring conventional financial products. Take a look at the Function X price chart above if you want to know the current FX price.
Function X aims to capitalize on Ethereum's (or any other chain’s) strengths rather than creating a rival ecosystem. It seeks to connect to its smart contracts, offer asset aggregation contracts, and simultaneously spur interest in both chains.
The backbone of the Function X system is the f(x)Core. The f(x)Core's function is to make transfers between blockchains easier. A blockchain instantly receives access to all other blockchains connected to the f(x)Core when it establishes an inter-blockchain communication (IBC) connection to the f(x)Core. Besides, Function X has a multi-chain structure, which allows it to accommodate the needs of different networks.
Moving further, Function X offers its own crypto wallet and decentralized exchange (DEX). The f(x)Wallet is a non-custodial wallet. It allows users to manage, transfer, and stake such digital assets as FX, PUNDIX, ETH, and others.
Talking about the Function X DEX, it allows users to trade crypto assets by employing the perpetual contract method. It essentially automates transaction fee processing and makes the trading price correspond to the market price.
The consensus mechanism employed by the Function X crypto project is a Tendermint-based Proof-of-Stake (PoS) algorithm. How does it work? The network has validators that have to approve and create new blocks. In order to become a validator, a user has to stake FX tokens. Besides that, FX token holders can become delegators by delegating their FX tokens to validators. This way, they contribute to the PoS consensus process without actively participating in it. Additionally, they are able to receive a portion of the block rewards that validators receive.
The Story of Function X
On August 8, 2018, Zac Cheah proposed the idea of developing the Function X chain. It was essentially developed with the aim of creating a network for the XPhone, which is the first blockchain phone. Function X allows XPhone users to call, message, upload files, and do so much more on its network. The prototype version of the XPhone was released on August 8, 2018. Overall, the blockchain sector saw a milestone when Function X chain expanded the use of blockchain technology beyond financial transactions.
Besides, Zac Cheah, together with Pitt Huang, founded Pundi X, which is a crypto project behind XPhone and the Function X blockchain.
The Purpose of FX Tokens
Function X coins are primarily used for governance. This means that FX holders are able to vote on various decisions considering the future development of the network.
However, Function X tokens can also be staked in order to become a validator or a delegator in the PoS consensus mechanism that secures the network.
Don't forget to check how the FX price changes over time. You can see that on the aforementioned Function X price chart.
Tokenomics of FX Tokens
FX tokens have a max supply of 1,893,022,625, which means that they are deflationary. In other words, once the circulating supply reaches the max supply, no new tokens will be created.
Primarily, 20% of the FX supply was generated during a Token Generation Event by employing a Proof-of-Concept consensus mechanism. 65% of the generated tokens were distributed to the NPXS and NPXSXEM token holders (they were a part of the Pundi X project). 20% was set aside in the Ecosystem Genesis Fund, and the remaining 15% was dedicated for marketing, engineering, and development purposes.
The remaining portion of the FX tokens supply will be issued through the block rewards by employing the PoS consensus mechanism.
If you've decided to invest in Function X tokens, do keep in mind that the FX price usually tends to swing. Why? Because when the crypto market fluctuates, so do the prices of crypto assets within it, including the FX price.