FUNToken announces new layer 2 token XFUN on Polygon

The Launch of XFUN

We are truly excited to announce the impending launch of XFUN – the new layer 2 token that will change the dynamics of FUN and bring us to the next level in our journey.

XFUN is a token on the Polygon Network, benefitting from the significantly increased performance and lower latency on this blockchain system.  It is minted through a process whereby FUN tokens are escrowed from Ethereum Main-net and removed from trading circulation.  The process is reversible, with gas fees for movement back to main-net charged to the token-holder.

XFUN will replace FUN as the token behind dPlay Casino (https://dplay.casino) and will be introduced to a number of new gambling ventures over the next 6 months including a new XFUN Casino, a fully on-chain poker room and a sportsbook to launch by the year end

 

XFUN

 

Proposition

XFUN is a new token on a faster blockchain that maintains a 1:1 value with FUN including full interoperability and enables FUN to leverage the power of blockchain and build out their strategy for decentralised gambling treasury and funds management.

All gambling games involve the bettor/player placing a bet (may be a seat at a poker table or a spin of a slot wheel) and a promise from an operator that the bet will be settled in favour of the winner.  During the process of the bet the players’ funds are traditionally held by the operator, and players have to trust the operator to have sufficient funds to settle should they win.

One fundamental proposition of XFUN is to move this activity onto blockchain, leaving players in control of their own funds and protecting them against insufficiently funded operators. XFUN will achieve this by using on-chain escrow for players and operators’ funds during the lifecycle of a bet.

The process will be rolled out in stages as we build the ecosystem, starting with removing the requirement to deposit and withdraw funds from a custodial casino. Players will retain control of their funds in their own non-custodial wallets, using these to “dip into” a casino or poker room, or place a bet.  Funds would only be moved out of the player wallet during the lifecycle of a session.

Further down the roadmap we will move towards a more dynamic model whereby the blockchain will secure transactions in a more granular manner, providing players with robust on-chain records and the security of knowing that every bet is covered by the counterparty.

 

XFUN Wallet

In order for the system to achieve mass-market take-up (an idea that has to some degree eluded crypto in general) we aim to deliver a first class user experience, making it as simple to hold and use XFUN as it is to hold coins in a “coinjar.”

XFUN will release a non-custodial wallet.  The wallet will incorporate a number of key features:

  • Ability to hold both FUN and XFUN tokens
  • Integration with both Ethereum main-net and Polygon
  • Seamless and user-friendly swapping FUN into XFUN and the reverse with integration into the XFUN Bridge
  • Integrated FIAT to FUN/XFUN opportunities using 3rd party processors
  • Gas-free transactions on XFUN where available
  • Integrated KYC where required by operator

 

XFUN Bridge

The XFUN Bridge will provide a mechanism for robust and secure swapping of FUN into XFUN and vice versa.  It will work by escrowing incoming FUN on Ethereum main-net and minting XFUN on Polygon. The reverse process involves burning XFUN and releasing funds from the escrow account on main-net.

FUNToken.io will publish a real-time web page where users can verify that the escrow accounts match the XFUN issued at any point in time.

 

Building the Audience and Tokenomics

FUNToken has a close relationship with Freebitco.in (FBC) which is the largest BTC faucet in the world and has a player base in excess of 46M players. FBC committed to FUN as a premium membership token earlier this year and started selling FUN to its members. 

As of August 2021 FBC has over 170,000 premium members holding over 430M FUN.  These members will all be automatically moved to XFUN once the wallets and bridge are ready, giving XFUN an immediate audience.  By comparison it is worth noting that FUN (on main-net) has around 86,000 token holders. It is likely that within the first month of XFUN more than 10% of the circulating supply will be escrowed into XFUN.

While the process of moving tokens to and from XFUN will be as fast and painless as possible (given the Ethereum main-net constraints) the goal is to incentivise players to retain their XFUN and continue to use them across all the opportunities – much like current gambling sites hold player balances.  It is expected that this will result in significant increase in the liquidity requirements in XFUN which can only be met by an increase in token price.

 

Entertainment and Gambling Opportunities

XFUN will be incorporated into a number of gambling and entertainment verticals as an ongoing process to grow the ecosystem.  While initially some of these will be either owned internally or by associated entities, our intention longer term is to expand the accessibility and usage of XFUN by encouraging 3rd party operators to use XFUN as a payment mechanism.  To this end we will be providing payment APIs to 3rd party operators.

 

dPlay Casino

The existing dPlay casino (https://dplay.casino) will be migrated from FUN to XFUN once XFUN is live.  It will continue to serve as a test bed for future technology and as a light-weight “plugin” casino for sites with user-bases such as Freebitco.in.

 

XFUN Casino

XFUN Casino will launch in Q3 2021 and will feature a richer game selection and enhanced functionality.  It will operate in XFUN from the outset.

 

Sports Betting

BETR peer-to-peer sports betting will be relaunched on XFUN.  This sophisticated betting system is entirely on-chain and enables players to take either side of a sports bet, coupled with integration to real-time odds engines covering all major sports and eSports.

 

Poker

We expect to announce a strategic initiative to bring fully on-chain poker to XFUN in Q4 2021.

 

Casino Lay Staking

We will introduce Casino Lay Staking enabling players to take the position of “the house” in Q4 2021.

 

Why have a new token?

 

Problems with gas fees and latency

FUN shares a similar problem with other ERC20 tokens in that it became victim to high gas fees and inability to scale.  Given the expectations of the new FUN team it was untenable to continue with technology that was, to put it frankly, creaking.  Much has been talked about Ethereum 2.0 fixing all the woes but many of these promises were made 4 years ago and we felt that it was time to put in place a more robust plan for the future.

 

Usability

Related to the above problem is the “user pays gas in ETH” model for transaction charging which makes it impossible for transactions to take place without users buying ETH.  This presents a conflicting message for the user.  While there remain much smaller gas fees on Polygon, FUN will be announcing user-friendly solutions with the new XFUN token.

 

Why Polygon?

With a substantial investment in Ethereum (from both BETR and FUN) we wanted to stay true to the underlying technology but break away from the main-net woes.

Polygon combines the best of Ethereum and sovereign blockchains into a full-fledged multi-chain system.

Polygon solves pain points associated with Blockchains, like high gas fees and slow speeds, without sacrificing on security. This multi-chain system is akin to other ones such as Polkadot, Cosmos, Avalanche etc, but with at least three major upsides:

  • It is able to fully benefit from Ethereum’s network effects
  • It is inherently more secure
  • It is more open and powerful

 

Challenge

Ethereum is the blockchain development platform of choice, but it has limitations.

  • Low Throughput
  • Poor UX (gas, delayed PoW finality)
  • No sovereignty (shared throughput/clogging risk, tech stack not customizable, governance dependence)

Many projects are exploring Ethereum-compatible blockchains as a way to mitigate these limitations while still leveraging Ethereum’s thriving ecosystem. However, there is no specialized framework to build such blockchains nor a protocol to connect them. This introduces significant development challenges and causes ecosystem fragmentation.

 

Solution

Polygon – a protocol and a framework for building and connecting Ethereum-compatible blockchain networks.

  • One-click deployment of preset blockchain networks
  • Growing set of modules for developing custom networks
  • Interoperability protocol for exchanging arbitrary messages with Ethereum and other blockchain networks
  • Modular and optional “security as a service”
  • Adaptor modules for enabling interoperability for existing blockchain networks

 

 

Summary

XFUN is the new layer 2 token that will change the dynamics of FUN and bring us to the next level in our journey. A token on the Polygon Network, which means it benefits from significantly increased performance and lower latency, it is minted through a process whereby FUN tokens are escrowed from Ethereum Main-net and removed from trading circulation.  

XFUN will replace FUN as the token behind dPlay Casino (https://dplay.casino) and will be introduced to a number of new gambling ventures over the next 6 months including a new XFUN Casino, a fully on-chain poker room and a sportsbook to launch by the year end.

FUNToken has a close relationship with Freebitco.in (FBC) with a player base in excess of 46M players, making it the largest BTC faucet in the world. As of August 2021, FBC has over 170,000 premium members holding over 430M FUN.  These members will all be automatically moved to XFUN once the wallets and bridge are ready, giving XFUN an immediate audience.  

XFUN will be incorporated into a number of gambling and entertainment verticals as an ongoing process to grow the ecosystem, including our own XFUN casino, to be launched in Q3 2021, and the currently live  DPLAY.Casino. Also, BETR peer-to-peer sports betting, poker and lay-staking, allowing the player to be “the house,” will be relaunched on XFUN in 2021.  

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