Shimmer

Overview

Shimmer is a layer-1 network launched by the IOTA Foundation in September 2022. It serves as an innovation network and staging network for IOTA, allowing developers to test and deploy smart contracts, tokenized assets, and DeFi applications before they go live on the IOTA network.

Purpose and Utility

The primary purpose of Shimmer is to provide a testing ground for IOTA's upcoming features and innovations. The SMR token is used for transaction fees, smart contract execution, and network governance. It enables actual ownership and transfer of digital assets within its ecosystem.

Business Model and Development

Shimmer operates on a feeless Directed Acyclic Graph (DAG) structure. The platform focuses on enabling real-world applications in IoT, smart contracts, and digital assets. The development team maintains active GitHub repositories with regular updates and improvements.

Token Distribution

The initial token distribution was conducted through a fair staking event where IOTA holders could stake their tokens to receive SMR. No tokens were allocated to the IOTA Foundation, making it a community-driven project.

Current Usage and Adoption

The network currently supports various applications including ShimmerSea DEX, smart contracts, and NFT platforms. While adoption is still in early stages, there is genuine utility and active development occurring on the platform.

Revenue Model

The platform operates without traditional interest-bearing mechanisms. Revenue generation is primarily through network usage and value appreciation of the underlying token, rather than lending or interest-based activities.