Fungible Token

Fungible Tokens (FTs) on Rubix Network

Fungible tokens on the Rubix network serve as a versatile tool for decentralized applications and community-driven projects, functioning similarly to individual fiat currencies that represent distinct economies. These tokens are created and governed within subnets, enabling developers to tailor them to specific applications while leveraging the security provided by the native Rubix Token (RBT). Just as RBT acts as a foundational asset in the Rubix ecosystem, ensuring stability akin to gold in traditional finance, FTs empower DApps to innovate and engage users effectively.

Fungible tokens (FTs) on the Rubix network, are gaining popularity for various DApps. They support dynamic ownership transitions while maintaining clear asset histories, making them valuable for RWA tokenization. Backed by RBT, these tokens enhance credibility and ensure seamless transfers across subnets. This dual-token system promotes liquidity and fosters the development of unique economic models, encouraging collaboration within the Rubix ecosystem

Creating a fungible token (FT) is a streamlined process that leverages the capabilities of decentralized networks. Users can initiate the creation of their FT by providing essential details such as the name/symbol for the token, total supply, and the amount of native token (RBT) to be utilized in the creation process. This information is submitted via a dedicated API endpoint (api/create-ft), where the user’s DID ensures secure and unique identification on the network. Once created, each FT’s value is determined by dividing the total RBT used by the number of tokens issued, enabling straightforward trading and utilization within various applications.

The native token RBT provides significant advantages in creating FTs within the Rubix network. Acting as a stable backing asset, RBT gives intrinsic value to each FT, fostering trust and mitigating volatility, which makes FTs appealing for trading. Additionally, RBT enables seamless transactions and enhances liquidity, allowing for efficient exchanges across various DApps. Overall, RBT strengthens the market position of FTs and contributes to a more efficient blockchain experience.

The fractional value of each FT enhances its utility within the Rubix network. The value is calculated by dividing the total native tokens used in creation by the number of FTs issued. For instance, if 100 FTs named Mango are created with 1 RBT, each Mango is valued at 0.01 RBT. This fractional approach allows users to manage smaller asset portions, democratizing access to digital assets and facilitating broader participation in trading and investment while improving liquidity.

The fixed supply of FTs is crucial for market stability within the Rubix network. Users can define a specific total supply during creation, preventing inflation and fostering trust by establishing a clear limit on availability. Additionally, custom naming allows creators to tailor their tokens for specific applications or communities. This combination promotes broader adoption and utilization of FTs across various DApps.

Transferring FTs within the Rubix network is a highly efficient process that aligns with the transfer mechanisms of the native token RBT. Users can execute FT transfers between DIDs by providing essential transaction details, such as the sender and receiver addresses, along with the name and quantity of FTs to be transferred. The transfer process employs a quorum consensus mechanism, which mandates that at least one-fifth of the total token value of the FTs being transferred must be held by the validating quorums. This rigorous validation process ensures secure and reliable transactions, as quorums confirm pledging and authorize the transfer before execution. By leveraging this sophisticated framework, FT transfers not only enhance liquidity but also facilitate seamless interactions across various DApps within the Rubix ecosystem, ensuring a professional and user-centric experience.