Frax Share

Frax Share (FXS) is the Frax Protocol's governance token, the first fractional-algorithmic stablecoin system. The Frax Protocol is designed to provide a scalable, decentralized, and algorithmic form of money. The system uses a unique approach where the stablecoin FRAX is partially backed by collateral and somewhat algorithmic. The FXS token plays a crucial role in the ecosystem by accruing fees, seigniorage revenue, and excess collateral value. Holders of FXS are involved in the protocol's governance, making decisions on critical proposals and the project's future direction.

• Total Supply

• : The total supply of FXS tokens is capped at 99,681,496 FXS.

• Initial Allocation

• : Over several years, 60% of FXS tokens have been distributed through liquidity programs, yield farming, and governance proposals. The distribution is designed to halve every 12 months, similar to Bitcoin's halving events.

• Purpose

• : FXS tokens are used for governance, incentivizing liquidity, and capturing economic value generated by the Frax Protocol. They also stabilize the FRAX stablecoin's value around $1.

As of today 22 November 2024, the price of Frax Share is ₹211.58 INR, with a 24-hour trading volume of 19352036.94 USD. The market capitalization for Frax Share is 205817328.9USD. The circulating supply is 84898550.91 Frax Share, with the total supply also being 99681495.59 Frax Share.

• Innovative Model

• : FXS supports a unique fractional-algorithmic stablecoin model, a novel approach in cryptocurrency.

• Governance Rights

• : Holding FXS grants governance rights within the Frax Protocol, allowing token holders to influence the project's direction.

• Economic Incentives

• : FXS accrues fees and seigniorage revenue, providing financial incentives for holders.

• Decentralization

• : The Frax Protocol emphasizes a decentralized and governance-minimized approach, which can attract those who value such principles in crypto projects.

• Scalability

• : The protocol aims to provide a scalable form of algorithmic money, which could have significant advantages as the crypto market evolves.

• Complexity

• : The fractional-algorithmic model may be complex for average users to understand, potentially limiting adoption.

• Market Competition

• : There is intense competition in the stablecoin market, which could impact the adoption and success of FXS.

• Regulatory Uncertainty

• : As with many cryptocurrencies, there is uncertainty regarding future regulations that could affect FXS.

• Transfer Costs

• : Being primarily on the Ethereum blockchain, high network congestion can lead to significant transfer costs.

• Volatility

• : Unlike FRAX, the FXS token is not a stablecoin and is subject to market volatility.

• First Mover Advantage

• : As the first fractional-algorithmic stablecoin, FXS could benefit from its model's novelty and potential efficiency.

• Governance Participation

• : Investors can participate in the governance of a pioneering stablecoin protocol.

• Economic Rewards

• : FXS holders can potentially earn financial rewards from the protocol's operation, including fees and seigniorage.

• Growing Ecosystem

• : The Frax Protocol has plans for expansion and cross-chain implementations, which could increase the utility and demand for FXS.

• Community-Driven

• : The protocol is community-driven, which may lead to a more robust and resilient project as it evolves with the contributions of its users.

• Fractional-Algorithmic Nature

• : FXS is part of a system that combines collateralized and algorithmic elements in a stablecoin, a unique offering in the crypto space.

• Halving Mechanism

• : The tokenomics include a halving mechanism for token distribution, which is uncommon for governance tokens and could create scarcity over time.

• Decentralized Governance

• : FXS allows for decentralized governance without active management, which could appeal to those looking for minimal intervention in protocol operations.

The Frax Protocol, with FXS as its governance token, aims to solve the problem of creating a stable, decentralized currency that is not entirely reliant on collateral or purely algorithmic. It addresses the issues of over-collateralization and the lack of stability in fully algorithmic stablecoins.

Sam Kazemian, an American software developer, developed the Frax Protocol. He has been instrumental in developing and launching the protocol, contributing significantly to its design and implementation. The team consists of early contributors working on the project since its inception, indicating a solid foundation and experienced leadership.

• Accredited Private Investors

• : A significant portion of FXS tokens, precisely 12%, was allocated to accredited private investors. This allocation included a structured vesting period where 2% of the tokens were unlocked at launch, 5% were vested over the first six months, and 5% were granted over one year with a 6-month cliff.

• Seed Funding Round

• : Frax has raised funding over one round, a Seed round on August 10, 2021, for an undisclosed amount. This round saw participation from 1 investor.

• Investor Participation

• : The Seed funding round included notable investors such as Crypto.com Capital, highlighting the interest and support from established entities within the cryptocurrency and blockchain space

• Regulatory Risk

• : Changes in cryptocurrency regulations could negatively impact the operation and value of FXS.

• Adoption Risk

• : The success of FXS is dependent on adopting the Frax Protocol, which is not guaranteed.

• Competition Risk

• : The stablecoin market is highly competitive, and FXS faces challenges from established and emerging stablecoins.

• Technical Risk

• : As with any cryptocurrency, there is a risk of technical issues or vulnerabilities in the smart contracts.

• Market Volatility

• : The value of FXS can be highly volatile, which adds a level of risk to investment.

The Frax protocol, which includes the Frax Share (FXS) token, is the world's first fractional-algorithmic stablecoin system. The protocol is designed to provide a stablecoin, FRAX, that maintains a tight band around the desired $1/coin value. This is achieved through a unique, fractional-algorithmic approach that does not require active management.

FXS is the governance and value accrual token of the Frax protocol. It is designed to be volatile and holds governance rights and all system utility. FXS holders can submit proposals and vote, with the voting power determined by how many FXS tokens are staked and for how long.

The total supply of FXS was initially hard-capped at 100 million tokens. The token distribution includes allocations for yield farming, liquidity incentives, governance proposals, strategic advisors, early contributors, and accredited private investors.

Investing in FXS could be attractive due to its role in the Frax protocol and the potential for price appreciation if the protocol continues to grow. However, investing in FXS also carries several risks, including price volatility and dependence on the performance of the Frax protocol.