Stablecoin Project Fluidity Receives Solana Grant

The innovative platform aims to reward users who spend with the coin in what could be a major pivoting point in the crypto world.

By
John Tunney
on
June 5, 2021
Category:
Breaking News

Project Fluidity 

On May 21st, Fluidity, a project on the Solana blockchain, announced that they have been awarded a grant by the Solana foundation. The project is very interesting, with the novel idea that aims to reward users for spending their Fluidity tokens - but with the potential to win enormous prizes just from spending the token.  

There is no risk to the user, who is simply transacting the token. Perhaps a good way to imagine the idea is if when you went to go pay with your debit or credit card, there was a chance that you would randomly win money, simply for spending money. Imagine buying groceries, clothes or gas for your car, and then winning money, purely for spending money! This concept seems almost too good to be true, but the unique qualities of stablecoins make this possible. Because there is little to no volatility on these coins, the rewards system will always reward users with a prize that translates well into their chosen Fiat currency. 


The Main Feature

The novel idea that makes Fluidity remarkable is similar to a lottery, where there are “winners” who can win huge profits simply by transacting with the currency. This is almost like a form of cashback rewards, but users trade incremental gains for the chance to hit it big.

The project will most likely use some of the fees collected from transactions on the platform in order to fund these winnings. Although the team has yet to release further details on how the platform will operate, users must spend Fluidity tokens in order to be entered into the lotto. This means people will have to convert their existing currency and not simply spend it on the platform, which could be where the protocol collects its funding.


Significance

 In order for the winnings to be sufficient enough to draw attention, Fluidity will need to build a community large enough to draw the income necessary. The project however has a potential lightning-in-a-bottle situation if enough eyes see their project and believe in its future. Their project could make some people instantly-rich if there is enough of a user base, and that alone makes for an appealing case to try the platform. Since the project is run on a stablecoin, that also means users can feel safe about their portfolio due to low volatility. As long as the community is active, the prizes will also be substantial enough thanks to a consistent value against Fiat due to being stable-coin based.



Concluding Thoughts 

This idea could change absolutely everything, in the crypto world and in the centralized world. The idea of a stable coin or any financial system, that rewarded users for spending, by offering a prize incentive, is revolutionary (if it can be done properly).. Whether the project explodes or fails to gain momentum, the idea alone is a game changer that displays why DeFi has such a strong case moving forward. Hopefully Fluidity has what it takes to transform their protocol into a massive decentralized application, but their ingenuity in theory alone makes for a promising start.  

About Solana

Solana is a web-scale blockchain that provides fast, secure, scalable, decentralized apps and marketplaces. This allows transaction throughput to scale proportionally with network bandwidth satisfying all properties of a blockchain: scalability, security and decentralization. The Solana Foundation has funded many projects on the chain, with a comprehensive list found here.

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John Tunney

John Tunney is an accomplished analyst and crypto enthusiast. The UCLA alum has been actively reporting and blogging for 3 years, and has a passion for all things finance.