What is Serum?
The Serum token, or SRM, is one of two native tokens powering the Serum ecosystem. The latter is a decentralized exchange (DEX) that comes with an on-chain automated limit order book, as well as a matching engine. It’s running on the Solana blockchain, while its native token is based on the SPL token standard.
To put it simply, the Serum DEX provides a similar experience to centralized exchanges due to the fact that it allows users to place their orders at different prices, as well as select trade sizes and directions.
SRM has several use cases. First of all, it serves as a governance token. This means that users will be able to cast their vote in regards to the Serum ecosystem parameters, such as transaction fees.
Secondly, SRM holders benefit from reduced protocol fees and receive staking rewards. Moreover, the project implements a buy-and-burn mechanism where the entirety of the exchange fees returns to the Serum token.
In order to make an informed purchase decision, you can check out the current SRM price on the graph above.
What are the Tokenomics of Serum?
There is a total supply of 10,000,000,000 SRM tokens. They have been distributed as follows:
- 27% - Ecosystem Incentive Fund;
- 27% - Partner and Collaborator Fund;
- 22% - Project Contributors;
- 20% - Core Team;
- 4% - Locked Seed and Auction.
It’s important to note that a large percentage of Serum coins have been locked up. They have an unlocking schedule that’s set over 6 years. This, as well as the limited token supply, makes the tokens scarce and can increase the Serum price and value in case of an increase in demand.
Who Developed Serum?
The Serum crypto project is open-source. This means anyone can review the code and use it to their advantage.
There is no available information regarding the founders of the project, however, it’s known that the core team behind Serum consists of professionals from FTX, the Solana Foundation, and Alameda Research.
