Is MOVR Token the Next Big Thing?
The Moonbeam Foundation released Moonriver as a significant project in the summer of 2021. Its primary purpose was to allow much better scalability and increased functionality, acting as a safe haven for Moonbeam's main projects before being deployed. The Moonriver chain operates with the MOVR token.
What is Moonriver exactly?
Kusama and the Relay Chain
Kusama can be considered like a giant, digital tree, where the various branches are parachains. All these branches connect to the tree's trunk, the Relay Chain. Every single parachain, or branch of this tree, inherits the features and functionality of the Relay Chain. Hence, all the parachains on the Kusama network will consist of the same security and transaction benefits that the main Relay Chain has.
Moonriver, as a parachain on Kusama, also benefits from the added security and faster transaction speeds that Kusama's Relay Chain boasts.
Another positive aspect that Moonriver brings to the Moonbeam Foundation is compatibility with Ethereum’s smart contract platform. This helps the network be much more versatile and approachable.
The main purpose of Moonriver
Perhaps the biggest and most important reason for the existence of Moonriver is to act as a canary network for Moonbeam.
Moonbeam itself is a network on Polkadot, and it operates in a similar fashion to its younger sibling. All codes and projects will first touch down at Moonriver, to see if they're operating smoothly in real economic scenarios. Once they get the green light, they can be deployed on the bigger Moonbeam network.
This gives developers much more incentive to launch new DApps and blockchain-related projects because it simplifies the deployment process.
However, Moonriver is not limited to being a "connecting flight" for Moonbeam. It still has plenty of added functionality on an individual basis, thanks to the qualities it inherits from the Kusama Relay Chain network.
Moonbeam puts a lot of emphasis on Moonriver being the community’s project. This is because much of the decision-making power for future projects and operations is in the hands of MOVR token holders. As we'll discuss below, Moonriver's token has a lot of functionality, and holders can have a big say in major decisions in the company.
The role of MOVR token
Most blockchain projects need strong tokenomics to operate smoothly. In the case of Moonriver, MOVR token is the main cryptocurrency powering the entire project. Here are some important use cases for MOVR:
• Paying for transactional fees on the network.
• Gas metering for Ethereum-related smart contracts.
• Playing a major part in governance operations, such as voting, electing, and proposing new regulations and decisions.
• Ensuring that Moonriver stays a part of the Kusama network.
These are some of the most critical use cases of MOVR, as it certainly possesses plenty more functionality.
Allocation and inflation
Staying on the Kusama network is one of the most important factors for Moonbeam. Hence, a whopping 30% of the entire MOVR token allocation went towards the KSM (Kusama’s token) crowdloan. To top that, a further 40% of the entire supply is used to reserve the Kusama network parachain slot for Moonriver.
The remaining 30% of MOVR supply is just for operational purposes, such as transactions, smart contracts, and governance.
To ensure a consistent flow of funds available to reserve a parachain slot, Moonbeam also uses inflation with this token. They've planned for a total of 5% annual inflation, which itself has been allocated for various uses - the primary one being the parachain slot.
This step is crucial for Moonriver to survive. As the initial supply will eventually run out, there needs to be a growing inflow of tokens to ensure the sustainability of the system.
MOVR token price prediction 2023
Currently, MOVR token’s price sits around $7.78, according to coinmarketcap. Its circulating supply is almost $45 million. Price prediction models aren't fully accurate, they just help to provide some insight as to what the estimated value of a token could be in the future. They should just be taken as a suggestion ONLY.
Multiple data analytic models predict that MOVR will be valued at around $100 on average for 2023. Moreover, its max price could touch $108.66 during the year. Again, these are just estimates. The real value could certainly be much higher or lower than the abovementioned range.
Where to buy Moonriver (MOVR) token?
As it’s a cryptocurrency, you’ll have to buy MOVR from a cryptocurrency exchange. There are many exchanges you can opt for, with Binance, Crypto.com, and Kraken being some of the most popular options. Simply log in on one of these websites (or apps), register an account, and trade your money with MOVR.
Is MOVR a good investment?
Considering that it's part of a big organization, MOVR seems to be on a path of long-term sustainability and functionality. That is one of the most important pointers of a successful company in the long run. So, if the crypto market stays stable, Moonriver could prove to be one of the more reliable options on the market.
Should I buy Moonbeam (GLMR) or Moonriver?
Both tokens have plus points and could be considered viable options when buying crypto. Moonbeam is the more established currency out of the two, with a bigger circulating supply. However, this also means that Moonriver is a relatively newer project by an already major company. This indicates that it has the potential to blow up in price.
Moonriver, and the MOVR token, could be the more volatile option if you're looking to invest, but it could also stand a higher chance of giving a decent return on investment.
Author: Osama Shahid
Osama Shahid is an experienced writer and editor, mainly writing about gaming and crypto. In his free time, he loves to game, playing FIFA 23 and Rocket League.