Launched on January 11, 2022, Moonbeam is a fully decentralized, Ethereum-compatible smart contract platform built as a parachain on the Polkadot network. GLMR is Moonbeam's native ERC-20 token.
The Moonbeam foundation, which powers Moonbeam and its sister network, Moonriver, hosted a crowdloan campaign in November 2021 to secure DOT tokens to book a parachain slot on Polkadot. Moonbeam received over 35 million DOT in that campaign. Following that, Moonbeam became the first-ever fully functional parachain on Polkadot, with over 80 projects ready to be deployed.
Moonbeam allows developers to build within a scalable Layer 1 chain at faster speeds and lower costs. It provides developers with an ecosystem similar to Ethereum regarding accounts, security systems, subscriptions, and decentralized applications (DApp) front-ends. Development tools mirror existing tools in the Ethereum ecosystem, such as Waffle, Hardhat, Truffle, MetaMask, and Remix. Moreover, any Ethereum project or Solidity smart contract can be replicated and deployed on Moonbeam without much rewriting or reconfiguration.
The Glimmer token supports several functions in the Moonbeam ecosystem. Examples include financing smart contract executions, incentivizing collators and participants who power the mechanics of the core node infrastructure, and supporting gas fee payments on the network.
Moonbeam aims to maintain the same level of decentralization as its relay chain, Polkadot. To do so, it has adopted a fully decentralized mode of governance, complete with rights to propose changes, an established voting system, and councils and committees with varying roles.
GLMR price and tokenomics
GLMR has a total token supply of 1 billion, subject to a 5% annual inflation rate. Among the allocation, 15% is designated for Moonbeam crowdloan contributors, approximately 30% for seed, strategic, and parachain bond funds, while the rest is reserved for ecosystem development, liquidity programs, and the team.
To address inflation, Moonbeam allocates additional tokens for security needs, with 2.5% going to collators and parachain rent and another 2.5% for staking rewards. Furthermore, Moonbeam burns 80% of transaction and smart contract execution fees accumulated on the network. Ultimately, the price of GLMR is influenced by developer interest in the main protocol, Polkadot.
About the founders
Moonbeam and its sister network, Moonriver, are built by PureStake and financially backed by the Moonbeam Foundation. Derek Yoo, an alumnus of the University of Pennsylvania, is the founder and CEO of these networks. Stefan Mehlhorn, the COO of both networks, has also founded two companies, Collego and Permessa. Alan Sapede, who has prior experience at companies like Google, Fuze, and Live Minutes, handles blockchain engineering. All three team members have worked in the same roles for Pure Stake.
