What is FIO Protocol?
FIO is the native token of the FIO Protocol, which is an open-source protocol built on the FIO Chain. It was developed to simplify crypto usability and eliminate errors in blockchain-related transactions. If you care to see the live FIO price, check out the FIO Protocol price chart above.
Using blockchain services is quite complicated since you have to write down long wallet addresses comprising multiple letters and numbers. If you make a slight error when entering the details, you will send crypto to the wrong address, which will leave you with a situation that is hard to reverse. FIO Protocol helps users to manage these long, complicated, and confusing public keys by connecting the address to a customizable and human-readable address. There is a huge variety of crypto assets that can be sent, received, or requested using FIO because the protocol is compatible with many different blockchains.
The FIO Protocol integrates public keys into a short and easily readable address that looks like a social media username. These simplified addresses enhance the user experience by sparing crypto users from tedious writing or copy-pasting long addresses. These wallet identifiers are in the form of username@domain, like joe@wallet.
Besides, FIO deploys the Delegated Proof-of-Stake (DPoS) consensus mechanism to validate transactions on the chain. It essentially has a network of block validators who have to validate and create new blocks. However, unlike it is with the traditional Proof-of-Stake, it is not enough to stake tokens to become a validator. Validators have to be elected by FIO token holders. The elected validators are called Block Producers (BPs).
The Story of FIO Protocol
FIO stands for the Foundation for Interwallet Operability. The protocol was developed by an association of crypto-based companies comprising of wallet providers, exchanges, payment processors, and other crypto-dedicated members. FIO is a registered non-profit institution led by a board of directors. The managing director of FIO is Luke Stones.
The members of this foundation aim to have a simple way to manage crypto assets and enhance the usability of blockchain products. In the future, FIO will operate as a Decentralized Autonomous Consortia, which will allow the whole FIO community to participate in adding value to the project.
What Can You Do With FIO Tokens?
There’s a lot to do with FIO tokens. FIO tokens are used to pay for registering new domains and addresses on the protocol. Also, registered address owners have to pay yearly fees, which are also covered using FIO coins.
Moreover, FIO tokens are used to incentivize the FIO Protocol community. For instance, when users renew their addresses, they are rewarded with FIO tokens.
Besides, as mentioned before, FIO tokens are a big part of the DPoS consensus mechanism because FIO holders have the right to vote while electing BPs.
FIO Tokenomics
FIO is a deflationary token with a max token supply of 1 billion, making it presumably a considerable store of value. ‘Presumably’ because crypto is generally volatile and token prices fluctuate intensely. ‘Considerable’ because the deflationary token nature may trigger a surge in FIO price. Also, as more projects will join the foundation, the FIO Protocol price could potentially rise.
