What is SafeMoon V2 (SFM)?
SFM is the native BEP-20 token of the SafeMoon platform. SafeMoon is a community-driven blockchain that focuses on decentralized finance (DeFi) services. The SafeMoon platform supports blockchain and metaverse development, as well as NFT products. In late 2021, the network migrated from V1 to V2. The SafeMoon V2 price from the migration onwards can be viewed in the chart above.
What is the Story Behind SafeMoon V2?
SafeMoon was founded by John Karony. He’s an entrepreneur and a software developer. Prior to founding SafeMoon, he worked as an analyst for the US Department of Defense. The idea behind SafeMoon was to create a blockchain that would be innovative and completely community-driven.
The decision to update the network and migrate to V2 was done to improve the network security and accessibility, as well as improve the quality of the cryptocurrency and make it more appealing to prospective users.
The migration from SafeMoon V1 to V2 officially occurred in December 2021. At the time, the SFM price value was $0.002, and the old assets were converted to the new ones at a ratio of 1:1000. It has shown high volatility since its launch.
How Does SafeMoon V2 Work?
SafeMoon V2 tokens became available after the migration from SafeMoon V1 at a 1:1000 ratio. The total supply of SFM tokens is 1,000,000,000,000. The token supply is regularly managed by burning, making it a deflationary asset. The SFM price is expected to increase as the supply grows increasingly shorter.
The SafeMoon V2 crypto platform covers four core functions during trading:
- Reflections – from each transaction, 4% of the fees are redistributed among the existing SFM holders;
- LP Acquisition – 3% of the SFM price value from the fees is injected into the network’s liquidity pools;
- Token Burning – 2% of the fees are burned to regulate the overall supply and maintain deflation rates;
- Growth Fund – 1% of the fees is used as a contribution to the blockchain’s Growth Fund.
The SafeMoon V2 blockchain can be used to develop a range of DeFi solutions, and SFM itself is considered a DeFi token. The platform enables e-commerce solutions, blockchain, and metaverse technology development. According to the team, SafeMoon plans to launch a centralized exchange platform (CEX) in the foreseeable future.
Additionally, users are able to build NFT products with the SFM coin. Such assets can be used for trading on NFT marketplaces or to enhance DeFi and GameFi applications. NFTs minted on the platform can be traded using the SafeMoon V2 price value. Although SafeMoon does not host its own NFT Marketplace, it’s been listed on the SFM roadmap.
SafeMoon was developed on the Binance Smart Chain (BSC). As such, the network uses the Proof-of-Authority (PoA) consensus mechanism. Here, the block validators are chosen by an organization to verify the authenticity of the transaction data before confirming a new block.
