With the launch of Bahamut Mainnet, FTN gained a new type of utility by becoming the native currency of the blockchain network, enabling all staking and validation mechanisms on-chain. To enable the natural minting processes of FTN rewards, the 12% supply burn is scheduled to take place on Ethereum and recreated on Bahamut as validator rewards.
Bahamut is a smart contract-enabled, open source DLT platform for all things Web3 and serves as the new-generation blockchain platform, chosen by the Fastex ecosystem. Bahamut introduces a new variation of PoS consensus, called Proof of Stake and Activity (POSA), which allows validators to receive rewards from their smart contract activity.
PoSA is designed to reward validators with active smart contracts more frequently. This will allow independent validators to join the network and accumulate activity whenever their smart contract-based applications are used by users (which includes token transfers and NFT trades, as well as any action inside an app that requires the user to spend gas) and get elected as block proposers more frequently, thus earning more rewards from the network.
12% of the existing FTNs are to be burnt on Ethereum Mainnet on October 26. The 120 mln FTNs will be exclusively used to distribute the rewards of the block validators by the network, as mentioned in the Fasttoken White Paper.