What is Centrifuge?
The Centrifuge coin or CFG is the native coin of the Centrifuge protocol. The latter is a blockchain network that bridges real-world assets to the world of decentralized finance. It’s powered by Polkadot.
CFG has several use cases. Firstly, it’s used to cover transaction fees on the Centrifuge protocol and paid out to network participants as an incentive for securing the network.
Secondly, CFG serves as a governance token. To put it simply, the Centrifuge coin grants holders voting rights on the development of the Centrifuge protocol.
Most importantly, the Centrifuge coin has its own bridge to Ethereum.
There is a total supply of 425,000,000 CFG coins. This makes the Centrifuge token supply deflationary. To put it simply, this could mean that as the CFG coins become more scarce, the Centrifuge price will increase. CFG coins have been allocated as follows:
- 27% - Core Contributors;
- 17.1% - Total Backers;
- 11.8% - Centrifuge Foundation Endowment;
- 10.8% - Development Grants;
- 9.5% - Community Sale;
- 8.3% - Early Ecosystem;
- 7.3% - Rewards & Grants;
- 7.1% - Community Grants.
In addition, the total supply of CFG coins grows yearly by 3%
On May 26th, 2021, Centrifuge held the first and second rounds of CFG Token Sale. It was hosted by CoinList. There was a limited supply of 17,000,000 CFG coins for every round. This makes up a total supply of 34,000,000 CFG coins for the Token Sale.
Since CFG is a cryptocurrency, its price tends to fluctuate. Keep up with the fluctuations with the help of our tracker above. It will allow you to stay updated on the current CFG price.
What are the Main Features of Centrifuge?
Centrifuge protocol allows users to put their real-world assets through the process of tokenization. In other words, with the help of Centrifuge, these real-world assets are turned into non-fungible tokens (NFTs).
As discussed in the What is Centrifuge section, Centrifuge was built on Polkadot. There are several reasons for this choice, the main one is near-instantaneous low-fee transactions.
Centrifuge operates using a Nominated-Proof-of-Stake (NPoS) consensus mechanism just like the one Polkadot uses. In this case, the CFG coin is paid out to users who participate in securing the network.
Additionally, Centrifuge is one of the first projects to launch a parachain a.k.a. Centrifuge Chain on Polkadot.
Centrifuge uses liquidity from Ethereum. In order to gain access to this liquidity, Centrifuge introduced Tinlake - a decentralized finance dApp powered by Ethereum. At the time of writing, Tinlake is running on Ethereum, however, the team aims to change that in the future by transferring the dApp entirely onto the Centrifuge Chain.
Centrifuge Chain is a public blockchain developed with the help of Parity Substrate. It’s secured via the Proof-of-Stake (PoS) consensus mechanism.
On the other hand, Tinlake facilitates the funding of the initially tokenized real-world assets.
Furthermore, a variety of decentralized finance protocols are integrated into the Centrifuge protocol. The main benefit of this kind of integration is additional uncorrelated collateral which brings down cumulative risks.
One of the primary goals of the project is to transfer monetary value from fiat currencies to crypto.
Who Developed Centrifuge?
The Centrifuge crypto project was launched in 2017. It’s a California-based blockchain company co-founded by entrepreneurs Lucas Vogelsang and Martin Quensel. They serve as the project’s CEO and COO respectively.
Prior to Centrifuge, Lucas Vogelsang founded a variety of companies including the daily deals platform, DeinDeal.ch which was acquired by Ringier, and a communication platform Blue Chocolate Inc.
On the other hand, Martin Quensel was part of the founding team at Taulia Inc. - a financial services provider. This is also where Lucas Vogelsang worked as an engineering manager.
Don't forget to research the Centrifuge price via our tracker before diving into the project.
