White Paper
Swarm ($SWRM) is an innovative blockchain platform designed to address the challenges of scalability, efficiency, and cost-effectiveness in the decentralized ecosystem.
Table of Contents
Swarm ($SWRM) Blockchain Whitepaper
Abstract
Swarm ($SWRM) is an innovative blockchain platform designed to address the challenges of scalability, efficiency, and cost-effectiveness in the decentralized ecosystem. Built as a fork of the Waves blockchain, Swarm introduces custom features and optimizations to create a high-performance network with a focus on liquidity provision, cross-chain interoperability, and sustainable tokenomics. This whitepaper outlines the architecture, tokenomics, and unique features of the Swarm network, presenting a vision for a robust and adaptable blockchain ecosystem.
1. Introduction
The blockchain industry continues to evolve rapidly, with new platforms emerging to address the limitations of existing networks. Swarm ($SWRM) enters this landscape as a purpose-built blockchain that combines the proven foundation of the Waves ecosystem with custom enhancements designed to meet the demands of modern decentralized applications (dApps) and financial protocols.
Swarm’s primary objectives:
- Provide a high-performance blockchain with faster transaction speeds and lower operational costs
Implement a sustainable tokenomics model with controlled inflation - Facilitate seamless cross-chain connectivity through innovative solutions
- Foster a vibrant ecosystem of decentralized finance (DeFi) applications and services
- Gradually increase decentralization while maintaining network security and efficiency
This whitepaper details the technical specifications, economic model, and strategic vision of the Swarm network, offering insights into how it aims to position itself as a leading blockchain platform in the years to come.
2. Network Architecture
Swarm is built on a modified version of the Waves blockchain, incorporating several key enhancements and custom features:
Technical Description | SWRM Network | WAVES Network | SWRM Network Advantage |
Block Time | 15 Seconds | 60 Seconds | 4x faster than the original Waves network |
Address Prefix | 37 | 3P | Custom Network Address |
Network Byte | 0 | 87 | Custom Network Byte |
Activated Features | 1-16 | 1-23 | Features activated by default at Genesis |
Dynamic Reward System | 6 | 0.1 |
|
The network architecture is designed to prioritize efficiency, scalability, and adaptability, ensuring that Swarm can evolve to meet the changing needs of its users and the broader blockchain ecosystem.
3. Consensus Mechanism and Node Operations
Swarm employs a permissioned Leased Proof-of-Stake (LPoS) consensus mechanism during its initial phase, with plans to gradually transition to a more decentralized model over time. Leasing over SWRM is almost 4 times faster than normal Waves leasing that takes 16 hours.
Key aspects of the consensus and node operation include:
Initial Node Operators | Approximately 10 trusted node operators, each subject to KYC procedures |
Minimum Liquidity Contribution | 2,500 USD per operator, representing a 2.5% stake in the network |
Gradual Decentralization | A phased approach to increasing the number of node operators and reducing centralization |
Source Code Access | Initially closed-source, with nodes and explorer publicly accessible |
This approach allows Swarm to maintain high performance and security during its early stages while laying the groundwork for increased decentralization as the network matures.
4. Tokenomics and Inflation Model
Swarm implements a carefully designed tokenomics model to ensure long-term sustainability and value accrual for $SWRM token holders.
| Genesis Supply | 100 million $SWRM tokens |
| Block Reward | 0.1 $SWRM token minted every 15 seconds |
| Annual Inflation Rate | ~211,000 tokens (0.211% of Total supply) |
| Inflation Adjustment | Possibility to adjust inflation through node voting |
Token Distribution and Vesting
A significant portion of the genesis supply will be allocated to various stakeholders and ecosystem development initiatives. Detailed vesting schedules will be implemented to ensure a gradual and controlled release of tokens into circulation.
Liquidity Provider Rewards
To incentivize liquidity provision and maintain a healthy market for $SWRM, the network will implement a rewards program for liquidity providers. These rewards will feature a vesting mechanism to prevent immediate selling pressure and encourage long-term commitment to the ecosystem.
5. Cross-chain Connectivity
Swarm introduces an innovative approach to cross-chain connectivity, leveraging secure telegram bots as intermediaries for token transfers between networks.
Key features of the cross-chain solution include:
Telegram Bot | 24/7 operation to facilitate secure token transfers |
Approval System | Generates addresses and memo/hex values for transfer validation |
Smart Contract Roles | Contracts on both source and destination chains to ensure transfer integrity |
Security Focus | Minimizes risks associated with traditional web gateways |
This system enables Swarm to interact with other blockchain ecosystems efficiently and securely, expanding its utility and potential user base.
6. Liquidity Provision and Profit Generation
Swarm places a strong emphasis on liquidity provision and sustainable profit generation to support the ecosystem’s growth and stability.
Key aspects include:
| Initial Liquidity Goal | 25,000 USD total liquidity from 10 initial node operators |
| Stable Coin Minting | Based on external liquidity provided to the network |
| Profit Allocation | Used to cover node operational costs and facilitate token buybacks |
| DeFi Infrastructure | Implementation of Automated Market Makers (AMMs) and order book-style trading via smart contracts |
These mechanisms are designed to create a self-sustaining ecosystem that generates value for all participants while maintaining network stability and liquidity.
7. Layer 2 and Layer 3 Solutions
To enhance scalability and expand its range of applications, Swarm will support the development of Layer 2 and Layer 3 solutions, including:
Games and Casinos | Telegram-based games are in plan but that need to appropriate licensing and regulatory compliance |
Gas Distribution Contracts | A Sponsorship token calledENERGY along with an dApp is planned for affordable gas distribution so scarcity of holding SWRM remains high |
Reward Systems | ENERGY Token airdrops and SWRM leasing programs, designed to engage both existing and new members, including developers and users. These initiatives aim to incentivize the creation of dApps, the development of SWRM marketing content, the production of high-quality graphic tutorials and videos, and the promotion of Swarm across various social media platforms |
These solutions will allow Swarm to support a diverse range of applications while maintaining the security and efficiency of the base layer.
8. Technical Advantages
Swarm incorporates several technical improvements over its predecessor, including:
Faster Leasing Activation | 4 hours compared to 16 hours on Waves (4x faster than Waves) |
Continuous Transaction Flow | Achieved through optimized reward distribution mechanisms |
Self-claim Mechanism | Promoting dApps so users can even self claim rewards if the distribution bot is unavailable |
These enhancements contribute to a more efficient and user-friendly blockchain experience.
9. Swarm ID and Social Integration
The Swarm ecosystem will feature a social product called Swarm ID which includes:
Swarm ID or Alias QR Code Functionality | Swarm Network enables effortless token transfers through a distinctive Swarm ID, similar to an email address. This allows users to create multiple Swarm IDs or aliases under a single address, making it easy to receive funds without the need to remember complex and lengthy addresses |
Swarm Network Expansion and Integration Planning | Aims to partner with various blockchains and exchanges to enhance reach of Swarm among other networks. |
This social layer adds a unique dimension to Swarm, facilitating easy peer-to-peer interactions and community engagement.
10. Roadmap and Future Developments
The Swarm team has outlined the following key milestones and development goals:
- Complete Swarm network development and initial node deployment
- Implement most of the blockchain functions including gateway via telegram bots
- Onboard initial 10 trusted node operators with 2,500 USD liquidity each
- Create and launch own Automated Market Maker (AMM) contracts (Type: V2 and V3) on the Swarm Network, as well as on various other networks, to support a range of DeFi products. Additionally, enhance and maintain liquidity by leveraging the liquidity pools of other AMMs in the ecosystem.
- Create desktop applications for wallet, games, and other servicesÂ
- Gradually increase decentralization and expand the nodes set
As the network evolves, additional features and improvements will be proposed and implemented based on community feedback and technological advancements.
11. Conclusion
Swarm ($SWRM) represents a significant step forward in blockchain technology, combining the proven foundation of the Waves ecosystem with custom enhancements and innovative features. By focusing on efficiency, cross-chain connectivity, and sustainable tokenomics, Swarm aims to create a robust platform capable of supporting a wide range of decentralized applications and financial services.
As the project progresses from its initial permissioned stage to a more decentralized model, Swarm has the potential to become a leading blockchain ecosystem, driving innovation and adoption in the broader cryptocurrency space. With its commitment to continuous improvement and community-driven development, Swarm is well-positioned to address the evolving needs of users, developers, and businesses in the decentralized economy.
