The FUNToken ecosystem has experienced significant growth in recent years, driven by its utility within the gaming community. The FUNToken protocol is specifically crafted to enhance gaming experiences, offering a transparent and fair mechanism for funding and integrating various gaming opportunities.
Although the token has fulfilled its intended purpose effectively, its underlying blockchain infrastructure has hindered its potential for expansion. Initially launched as an ERC-20 token on the Ethereum blockchain, the FUN token has faced challenges such as high latency and gas fees due to network congestion and architectural limitations, which have restricted its scalability and usability across its diverse gaming applications.
### Introduction of XFUN on the Polygon Blockchain
To address these challenges and improve the ecosystem’s gaming capabilities, a new layer-two token known as XFUN is being introduced on the Polygon blockchain. XFUN operates as a wrapped version of the FUN token, maintaining a 1:1 peg, and is expected to propel the FUNToken ecosystem into a new phase of growth. As a layer-two solution, XFUN leverages the high performance, reduced latency, and lower transaction costs offered by the Polygon Network.
### Coexistence of FUN and XFUN Tokens
The XFUN token will exist alongside the original FUN token within the gaming environments supported by FUNToken, including dPlay Casino. While both tokens will retain their utility, XFUN is set to be integrated into a variety of new gambling products that will launch in the upcoming months, greatly enhancing the opportunities and applications for the token. Although only FUN will be available for trading on exchanges, XFUN offers unique features that promise to improve transparency and foster trust within the gaming and gambling sectors.
### Non-Custodial Utility of XFUN
The design of XFUN emphasizes a non-custodial approach to gaming protocols, marking a significant departure from conventional gaming platforms where players’ funds are managed by the operator. Instead, XFUN will be securely stored in non-custodial wallets, granting players complete control over their funds. During gaming sessions, the money required for bets will remain in the player’s wallet while being held in escrow.
### Key Infrastructure Features of XFUN
Alongside the launch of the XFUN Token, several infrastructure features will be introduced, including the XFUN Wallet and the XFUN Bridge. The XFUN Wallet serves as a non-custodial vault for both XFUN and FUN tokens, enabling users to swap between the two and facilitating fiat payment options through third-party processors. Additionally, the wallet will support Know Your Customer (KYC) registrations if required by specific gaming operators.
The XFUN Bridge will allow users to convert FUN tokens into XFUN and vice versa seamlessly.
### Dual Token Deflationary Model
The updated FUNToken platform, which integrates XFUN, will function under a dual token deflationary model. To obtain XFUN, users must swap their FUN tokens from the Ethereum blockchain using the XFUN Bridge. This process locks the FUN tokens in an escrow account, leading to the minting of XFUN on the Polygon Network. With a fixed 1:1 ratio, 1 XFUN will always equal 1 FUN, and the FUN tokens locked in escrow will reduce the circulating supply, creating a deflationary effect that aligns with the supply cap of FUN tokens.
As gaming activities utilizing XFUN increase, the demand for FUN tokens to be converted into XFUN will likely rise, creating a self-sustaining mechanism that decreases the total number of FUN tokens in circulation. This reduction could positively impact token holders, potentially driving up the economic value due to increased scarcity.
### Expanding the XFUN Token Ecosystem
Through its partnership with FreeBitco.in, the world’s largest Bitcoin faucet, which boasts over 46 million players, FUNToken is poised to onboard a new generation of gamers. FreeBitco.in currently has more than 177,000 FUNToken holders through its Premium membership program, and these users will be encouraged to transition their custodial FUN tokens to XFUN on-chain. With the FUN Token mainnet holding approximately 85,000 holders, the anticipated launch of XFUN and the onboarding of FreeBitco.in premium players could result in over 253,000 active users. This growth is expected to accelerate rapidly, ensuring the FUNToken ecosystem remains vibrant and engaged.
With the scalability, low latency, and reduced transaction fees provided by the Polygon Network, the landscape of online gaming and betting platforms is set to evolve significantly. Sustainability and usability will be the focal points moving forward, and the implementation of advanced token features, along with the user-friendly XFUN Bridge and swapping model, is paving the way for a dual token deflationary ecosystem to become a reality.
