Elrond-to-MultiversX Rebrand MultiversX was originally founded and launched as Elrond with the ambition to rival heavyweights in the smart contract blockchain landscape, such as Ethereum and (at the time) EOS. In 2017, Lucian Todea, Beniamin Mincu, and Lucian Mincu came together with a shared vision and established Elrond. The company took a significant leap forward in 2019 when it secured $1.9 million in funding from a private investment round and an additional $3.25 million in a successful Initial Exchange Offering (IEO) on Binance Launchpad. A detailed breakdown of the initial token allocation is as follows: • Public sale tokens comprise 25% of the total supply. • Private sale tokens comprise 19% of the total supply. • Team tokens comprise 19% of the total supply. • Reserve tokens comprise 17% of the total supply. • Advisors received 2.5% of the total supply. • Ecosystem Rewards tokens comprise 7% of the total supply. • Marketing tokens comprise 8.5% of the total supply. • Community tokens comprise 2% of the total supply. In its initial stages, the cryptocurrency associated with Elrond was known as the ERD coin. However, with the launch of its mainnet in July 2020, the company decided to revamp its tokenomics, renaming its digital asset from ERD to eGLD coin to convey the notion of a digital store of value to the next billion crypto users. In a strategic move signaling its evolution and future aspirations, Elrond underwent a rebranding exercise in November 2022 to MultiversX. With the change came plans to introduce three new Web 3-native products, namely xFabric, xPortal, and xWorlds, all while still utilizing the underlying Elrond technology at the base layer. xFabric is introduced as a sovereign blockchain module that encompasses core blockchain applications. The platform is designed to provide a range of features and use cases, aiming to serve developers and institutions that seek adaptable blockchain solutions. xPortal is viewed as MultiversX’s “super-app,” intended to function as a gateway into the crypto financial economy and Metaverse. The platform, which is currently live, allows users to customize digital avatars, manage financial tools, including a debit card, and communicate with other users. Finally, developed in partnership with technology firm Improbable, xWorlds is positioned as a platform that offers experiences that integrate both xPortal and xFabric into a “world of metaverses.” While the specifics of these experiences are not detailed extensively in the announcement, the collaboration signifies MultiversX’s effort to intertwine various products and platforms for a cohesive user experience. eGLD eGLD, MultiversX’s native token, occupies a multifaceted role within the MultiversX ecosystem, which has now evolved into MultiversX. The token serves not just as a digital currency but also underpins various functionalities critical to the blockchain’s health and governance. Key Utilities of eGLD: • Transaction Fees: All transactions on the MultiversX blockchain require eGLD as payment for processing. • Network Security through Staking: eGLD tokens can be staked, a process that aids in enhancing the network’s security. Stakeholders play a pivotal role in network validation and, in turn, are often rewarded for their commitment. • Governance: To foster a decentralized decision-making process, the MultiversX blockchain incorporates eGLD as its native token and medium of exchange. Token holders can influence and vote on pivotal network decisions, giving them a direct say in the blockchain’s future trajectory. When conceptualizing eGLD, the MultiversX team envisioned a token that wouldn’t merely operate as a digital currency but would parallel the innate value proposition of gold. However, they aimed to offer added functionalities that would potentially render eGLD more versatile than its tangible counterpart in the long-term perspective. An intriguing feature of eGLD is its supply cap, fixed at 31,415,926. Initially, early token holders were subjected to lockups, but, as of 2023, the entire supply is now circulating (image below). Such a cap is intentional, driving the token’s scarcity and, by extension, its potential demand. Furthermore, instead of adopting a model that continually issues new tokens, MultiversX’s framework utilizes transaction fees. This mechanism effectively diminishes the theoretical ceiling of eGLD, further amplifying its scarcity over time. It’s worth noting that as eGLD adoption grows, the dynamics of its supply and demand will continually evolve, reaffirming that the theoretical maximum supply remains a target rather than an absolute certainty. Transactions and Fees MultiversX uses a unique model to determine transaction costs. At the heart of this cost determination is the concept of gas, which acts as the fuel for transactions. Every MultiversX transaction is associated with a processing cost, quantified in terms of gas units. When broadcasting a transaction, it’s imperative to allocate a gas limit. This parameter sets the maximum amount of gas units that the transaction might consume. Importantly, the actual gas consumption—referred to as ‘used gas’—reflects the real quantity of gas units the network needs to complete the transaction. Any gas units not utilized are labeled ‘remaining gas’. The network, when processing the transaction, segregates the used gas into two distinct categories: • Gas consumed by value transfers and data management: This component encompasses the core activities like moving eGLD values. • Gas involved in smart contract execution: This includes operations tied to executing both System and User-Defined Smart Contracts. It’s pivotal to understand that standard eGLD transfers only tap into the first category, namely value movement and data management. In contrast, Smart Contract interactions utilize gas from both categories, depending on the complexity of the operations involved.MultiversX fees over time, denominated in eGLD. The processing fee, denominated in eGLD, is derived from two primary factors: the total gas consumption and the price per gas unit. This gas price, especially for the value transfer and data management component, is not arbitrary. Instead, the transaction must stipulate it, ensuring it meets or surpasses a predetermined threshold. Once the Network concludes the transaction processing, there’s an interesting facet to the system—a potential gas refund. If the gas provided surpasses the actual consumption, thereby leading to an overpayment in fees, the Network returns a portion of the eGLD. This ‘gas refund’ corresponds to the unused or ‘remaining gas.’ Technology At its core, MultiversX is a “next generation” smart contract blockchain competing against the likes of Ethereum, Polygon, Near, Solana, etc. However, MultiversX has introduced two defining features to its architecture that others have not: 1. Adaptive State Sharding: This innovative approach involves fragmenting the blockchain’s infrastructure, paving the way for a higher volume of transactions and programs, all while ensuring seamless operation. This ensures that as more computers are integrated into the network, MultiversX’s performance doesn’t just maintain but escalates, potentially hitting an impressive benchmark of over 100,000 transactions every second. 2. Secure Proof-of-Stake (SPoS): A consensus mechanism tailor-made by MultiversX, SPoS is designed to synchronize disparate parts of the network, ensuring they align with a unified ledger. MultiversX WASM VM and Programming Languages Before diving into MutiversX’s novel Adaptive State Sharding or SPoS, it is worthwhile to understand its virtual machine carried over from its days as MultiversX, now referred to as the MultiversX Virtual Machine. What is unique about this VM is that it serves as an abstraction layer, designed to insulate smart contract developers from the intricacies of the system’s internal architecture, simplifying their development experience. The VM is built using WebAssembly, often referred to as WASM. WASM is a binary instruction format tailored for stack-based virtual machines utilized by other projects like Polkadot and Solana. The benefit of WASM is that it offers developers a diverse toolkit; they’re not limited to a single language like Solidity. Instead, they can harness the capabilities of languages like C, C++, Rust, C#, and Typescript (any supported language that can be compiled to bytecode). Despite multiple programming language options, the MultiversX team only supports (and therefore recommends) developers to use Rust. In the future, WASM will be able to compile Solidity code (the most popular smart contract language), making MultiversX and Ethereum/ERC-20 transactions frictionless. For the full report, click here.