Let’s quickly explain the Loom token.
As previously announced, we just witnessed the launch of the Loom network – a network of blockchain software used for easy launching of decentralized app infrastructure based on Loom’s products – dedicated dappchains.
In order for end users and applications to be able to use the Loom network they need to pay a lifelong membership by obtaining at least one LOOM token. These tokens are simple ERC20 tokens like any other token on Ethereum, and during the usage of the Loom infrastructure the nodes spinning dedicated dappchains will check the addresses interacting with them for the existence of a LOOM token – if present, they’re allowed to execute transactions. Specifically, having a LOOM token lets you transfer digital assets from dappchains to the Ethereum mainnet.
This approach is used for financing the company and paying them for maintenance and further development of the whole ecosystem.
Right now, the address must have at least one LOOM token to be a “member”. In the future, Loom is planning to add additional membership levels that might require more tokens to be present on an address – for example plans with extra support from the company, or plans with more dappchain resources.
The tokens do not get used up. They serve as a proof of membership and are permanent and do not expire.
Loom tokens can be obtained through direct purchase on the LoomX page if you have MetaMask installed at a fixed price of a whopping $1.99, or on the KuCoin exchange for a dramatically lower price of around 8 cents at the moment. It’s worth keeping in mind that withdrawing from that exchange requires you to pull out at least 200 LOOM and costs 30 LOOM in transaction fees.
You can check out the token at this address – the max supply is 1 billion and they have no other purpose than being a membership token for the Loom Network.
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