What is the Serum?
Serum is a decentralized exchange platform (DEX) that runs on the Solana blockchain. The current advantages (09.2021) of using the Solana blockchain are: transaction speed, low fees, fully decentralized exchanges for several blockchains and Interoperability with Ethereum and ERC-20.
The SRM token
The SRM is a utility token that has multiple functions within the Serum ecosystem. First of all, like many tokens specific to exchanges, it gives its holder a reduction in platform fees. Then, Serum works via proof of stake: SRM staking therefore brings in rewards. Finally, the SRM is a governance token. It allows you to vote, to adjust certain Serum parameters. A system of buy and burn transaction fees makes the total amount of SRM scarce. This is a fairly standard mechanism for exchange platform tokens. For example, Binance uses this model with BNB.
Staking on Serum
Serum nodes have several functions such as performing various functions to optimize DEX efficiency, retrieving and submitting blockchain histories for cross-chain swaps, voting on proposed changes to Serum (such as fee amount) and managing funds. insurance from Serum. A Serum node is made up of a leader and stakers. The leader is the one who created the node and who administers it, but he is not necessarily the one with the most funds.
The future of SRM
The future of serum offers bright prospects. It is quite rare for a token to be locked for such a long period; this thus testifies to a real commitment of investors to the project. Its utilitarian aspect is in the image of what is already done on the side of exchange tokens. SRMs give entitlement to reduced user fees, and rewards for stakers. This maximizes the incentive to lock them in, and should therefore help reduce the supply in circulation. Their gradual release, over several years, is also planned to minimize the impact of the increase in supply on the price.
You can invest in Serum thanks to these platforms: