The common complaint which we can hear from crypto currency skeptics is that crypto currencies do not carry any inherent value. The developers of Futereum (FUTR) have formulated a strategy to create a minimum instant value in their offered coin. The Futereum smart contract enables its native token, known as FUTR, a utility derivative. The smart contract is powered by the Ethereum network.
By employing a Fibonacci algorithm in the process of undertaking a reverse-mining of Ether (ETH), FUTR simulate Ether Derivatives Contracts while giving miners whitelisted early access to similar future product releases. The project founder James Hurst terms the process, a Reverse-Back Crypto (RBC). By adopting this method, FUTR offer miners not only core block chain utility, but also Ether-based derivative utility functions. The system works as follows:
- To begin with, a miner has to send ETH to the smart contract address: 0xc83355eF25A104938275B46cffD94bF9917D0691. In return, the miner will receive between 2-114 FUTR for one Ether (or a fraction thereof) depending on the mining level at the point of sending mining levels get harder as more FUTR are mined.
- At the end of 13-37 months, depending on when the levels are mined, FUTR swaps back at a ratio of 1% per FUTR – 1% per ETH.
- Because of the way in which FUTR is distributed, FUTR functions like a futures contract with a performance advantage awarded to early – stage miners and those who mined FUTR when ETH was cheaper in value:
Total: 6,730,000 FUTR 500,067 ETH
- Once all 6,730,000 FUTR are sold for a total of 423,556.749 ETH (500,056 – 15.3% fees), the FUTR and the ETH are swapped back with each other after either 13 months or after 37 months (depending on the time period in which all FUTR are sold).
- The exchange of FUTR with ETH on a like-for-like basis results in every FUTR holder getting the same amount of ETH regardless of the Level or the time period in which they mined FUTR.
- For every 15.88925218613386 FUTR, 1 ETH is received via the smart contract in the swap back. For a Level 1 player, for example, this results in an increase of 8.87 ETH per 1 ETH originally submitted to the smart contract.
There are several possible use cases for Futereum. FUTR is a utility token with a tradeable value. Additionally, it can be swapped to ETH at a predetermined period. Thus, it is a much more diversified crypto which ICOs can accept. Because of its functionality, FUTR can be used as a derivative to increase Ether gains. Furthermore, it can also be used as a hedging coin to offset losses from Ether sell off. Accumulation of FUTR tokens will enable its holder to have an edge in the next mining cycle.
FUTR is a unique payment utility that works like a call option on the payment currency itself. In this way, merchants are able to charge their customers progressively less over time while making much more in return for the same goods and services.
The developers claim that it is the world’s first value enhancement of the block chain.