What is Moonriver (MOVR)?
MOVR is the native token of Moonriver which is a parachain that runs on Kusama and focuses on employing Solidity-based smart contracts. It’s a supplementary network to Moonbeam and it acts as a permanent canary network for testing incentive systems. Take a look at the Moonriver price chart above if you want to see the current (or previous) MOVR price.
How does it work? Firstly, a code of a certain incentive system is sent to Moonriver. Then, it’s tested to check if it works based on real-world economic settings. If it does, the code is employed on the Moonbeam network.
However, note that Moonriver is not dependent on Moonbeam. It can be used without it and have its own projects.
Besides, Moonriver is fully compatible with Ethereum protocols, tools, and decentralized applications (dApps). Using Truffle, Hardhat, and other well-known deployment tools, Ethereum projects can easily copy their dApps and publish them on Moonbeam.
Besides, in order to run already existing Solidity smart contracts without major changes, Moonriver mimics Ethereum's accounts, keys, logs, and so on.
The Purpose of MOVR Tokens
MOVR is the utility token of the Moonriver network. The following are the main use cases of Moonriver crypto assets:
- MOVR tokens grant holders governance rights, which means that they can vote on various decisions considering the development of the Moonriver network.
- MOVR tokens are used to pay transaction fees.
- MOVR tokens are used to support smart contract execution gas metering.
- MOVR tokens are used to reward collators and support the creation of a decentralized node infrastructure.
Tokenomics of MOVR Tokens
Initially, the total supply of MOVR coins was 10 million. However, there is no max supply set, which means that more tokens can be issued if needed. The yearly inflation rate of Moonriver coins is 5%.
The biggest portion (40%) of the total supply was dedicated to community rewards and the Parachain Slot Reserve. The remaining part was dedicated to the parachain crowdloan, parachain bond reserve, treasury, early network adopters, and the developer adaptation program.
You should definitely take a closer look at the Moonriver price chart mentioned before if you plan to buy MOVR tokens. Why? Because it would be useful to analyze the main changes in the MOVR price over time to decide whether it's a good investment or not.
