Forward Protocol is a pioneer blockchain project dedicated to decentralizing and revolutionizing the education and learning spaces. Every human being has the right to learning experiences of the highest quality. Forward Protocol aims to deliver on this vision through its prospective blockchain network — Forward Chain — and native tokens ($FORWARD and $FUSD).
Forward Token is the gateway to interact with the Forward ecosystem and the participants within it. This article will take a closer look at $FORWARD, its use cases, and potential applications within the Forward ecosystem.
Here’s an overview of the utility of $FORWARD:
- Medium of Exchange
- Economic Incentive
- Staking & Yield Farming
- Blockchain Operation
Medium of Exchange
Forward Protocol caters to the needs of a wide variety of users such as learners, teachers, experts, freelancers, non-profits, and employers. These participants within the Forward network will interact with one another via smart contracts, exchanging value using $FORWARD.
A typical interaction on Forward Protocol utilizes some or all the components of its five core contracts. These interactions involve the movement of $FORWARD. For example, when a learner asks a question, and experts and other users suggest answers, the Proof of Value smart contract is deployed. It divides the ad revenues of the page (e.g., Quora) and donations (e.g., Wikipedia) among the contributors to the page based on impact, not activity. These rewards will be in $FORWARD.
Another use case is when teachers receive $FORWARD rewards through Distributed Rewards and Revenue Sharing smart contracts. The stipends are generated when former students land new jobs or make any income that meets certain conditions. In essence, Forward token serves as a medium of exchange when value transfer occurs between multiple parties.
All smart contracts in Forward Protocol are programmed to buy $FORWARD tokens from the market to reward users. Hence, every integrated platform will automatically purchase $FORWARD tokens to reward value transfer. This automated response will increase demand irrespective of crypto market cycles — bull or bear.
$FORWARD will be used to incentivize users to participate and contribute to the knowledge transfer process. For instance, participants in platforms that have integrated Forward Protocol who hold $FORWARD are eligible for loyalty membership benefits. The users will be grouped into several tiers based on the amount of $FORWARD they hold. Each level will have access to special discounts on network fees and other promotions such as early access to job listings. It uses a mix of reputation/history and platform loyalty to position them favorably in applications and listings across job boards, course listings, etc.
Forward tokens holders are part of the Forward Decentralized Autonomous Organization. They will govern the protocol and have the position to propose new features and changes to the ecosystem. The DAO members can assess and vote via a gasless polling dashboard when the developer community suggests a new feature or update to the protocol. They are free to leave comments and may schedule regular community calls to discuss the current state of the protocol and share new ideas. The DAO members are a vital part of the decision-making process, and they shape the future of the protocol.
Staking & Yield Farming
$FORWARD tokens holders may participate in the expansion and growth of the Forward Protocol by providing liquidity into decentralized exchanges. Liquidity providers will earn a percentage of the transaction fees on these DEXes. In addition to that, they have the opportunity to yield farm $FORWARD by staking LP tokens.
$FORWARD will power all transactions and interactions on the prospective Forward blockchain (2022 roadmap). For example, when a user pays for a course using the native stablecoin $FUSD or other supported crypto, $FORWARD will be required to pay for gas. Full node operators will receive transaction fees and block rewards for validating transactions and securing the network from malicious activities.
In addition to $FORWARD, a suite of stablecoins will facilitate payment in the protocol without worrying about the cryptocurrency market’s volatility. $FUSD is the ecosystem’s stablecoin and it’s pegged to a basket of other stablecoins like USDC, USDT, and BUSD. To mint new $FUSD tokens, the user deposits USDC, USDT, or BUSD into a smart contract. After that, the smart contract issues an equal amount of $FUSD. The smart contract burns $FUSD when the user withdraws the initial deposit. Let’s see the below example of the utility of stablecoins.
Andrew would like to pay for The Basics of Baking course. The course costs 20 USD, and the accepted currency is $FUSD. Andrew then deposits 50 USDC into the stablecoins smart contract to receive 50 $FUSD. He pays for the course and gains access to its content. Andrew now has a balance of 30 $FUSD, and he would like to get his USDC tokens back. He proceeds by depositing 30 $FUSD into the smart contract and receives 30 USDC. The smart contract burns the deposited 30 $FUSD forever.
In due time, Forward Protocol will offer a wider variety of stablecoins to help users to interact with more diverse learning material.
So, What is the Gist?
$FORWARD is an essential component of Forward Protocol, and every ecosystem participant and network depends on its long-term performance. It is also a requirement to execute and complete any transaction rewards in the ecosystem.
It is simply the central nervous system of Forward Protocol. As long as the ecosystem thrives, $FORWARD’s utility cannot be overstated.