What is Shardeum?

What is Shardeum?

Shardeum is an EVM-based Layer 1 blockchain that leverages dynamic state sharding to achieve linear scalability. This means that as more nodes are added, the network's transaction throughput increases while maintaining low transaction fees. Shardeum allows developers to deploy Ethereum-compatible smart contracts directly, ensuring a smooth transition and efficient operation without any code modifications.

Shardeum uses a hybrid consensus mechanism that integrates Proof of Stake (PoS) and Proof of Quorum (PoQ) for secure and fast transaction validation. Validators stake SHM tokens to participate. PoQ requires a majority of validator nodes to approve each transaction at the transaction level, ensuring quick and secure consensus without block-level validation. 

This approach guarantees low latency and immediate finality, enhancing network performance and security. It sets Shardeum apart from traditional monolithic high-speed chains like Solana and Aptos.

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How Does Shardreum Work?

Shardeum achieves high scalability, security, and decentralization through its advanced architecture and unique consensus mechanism. Here’s a breakdown of its key components:

• Dynamic State Sharding: The network is divided into smaller segments called shards, each processing transactions independently. This parallel processing boosts overall network throughput.
• Hybrid Consensus Mechanism: Utilizing Proof of Stake (PoS) and Proof of Quorum (PoQ), Shardeum ensures secure and rapid transaction validation. Validators stake SHM tokens and consensus is achieved through a quorum of validator votes.
• EVM Compatibility: Shardeum supports Ethereum-based smart contracts, allowing developers to deploy them directly without modifications.
• Auto-Scaling: The network automatically adjusts the number and size of shards based on real-time demand, maintaining optimal performance and low transaction fees.
• Immediate Finality: Transactions are confirmed individually and quickly, minimizing the risk of double spending and reducing latency.
• Community-Driven Nodes: Shardeum enhances decentralization by enabling community members to run nodes, contributing to the network's robustness and scalability.

This technical framework ensures Shardeum can efficiently manage a high volume of transactions while maintaining low fees and strong security.

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Shardreum (SHM) Tokenomics

Shardeum’s SHM tokenomics are designed for sustainable growth, fair distribution, and strong community incentives. To mitigate the volatility of SHM tokens, Shardeum employs a stable price mechanism. By pegging transaction fees, validator rewards, and staking amounts to USD equivalents, the network ensures economic stability and predictability.

Here is a quick overview of the tokenomics and current emissions schedule:

• Total Supply: Fixed at 508 million tokens.
• Distribution: 51% for node mining to incentivize validators, 18% for sale events to ensure liquidity, 15% for the team reflecting their contributions, 11% for the Shardeum Foundation to support ecosystem growth, and 5% for ecosystem incentives and airdrops.
• Stable Price Mechanism: SHM uses a stable price mechanism pegged to USD equivalents. This ensures economic stability for transaction fees, validator rewards, and staking amounts, even with SHM price volatility.
• Validator Ratio (S Ratio): The network maintains a high ratio of standby to active validators to enhance decentralization and security. Standby nodes are incentivized to stay ready, ensuring the network can handle traffic spikes efficiently.
• Emissions and Rewards: SHM rewards validators based on participation, with dynamic adjustment to emissions to maintain network equilibrium. This structure ensures validator profitability while preventing inflationary pressures.

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Shardreum Governance

Shardeum’s governance model is structured to transition from initial centralization to full decentralization through a Foundation/DAO (FDAO). At launch, the FDAO manages the network, gradually lowering the SHM token threshold required for governance participation. 

This phased approach ensures a smooth shift to community control, enabling more members to propose and vote on network changes over time.

Community participation is key to Shardeum’s governance. As users acquire SHM tokens, they can influence the platform’s direction, including proposing changes and voting on critical issues.

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Atomium Testnet

The Atomium Testnet is Shardeum's incentivized environment where developers and users can test network features and earn rewards. By participating, users can evaluate dynamic state sharding, hybrid consensus mechanisms, and EVM compatibility, all while earning airdrop rewards in preparation for the token launch. Simply connect your MetaMask to Shardeum to start earning rewards today.

This testnet is crucial for validating Shardeum’s performance and security, engaging the community in rigorous testing to ensure the network is robust and ready to handle high transaction volumes with low latency and immediate finality before the mainnet launch.

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Bottom Line

Shardeum redefines blockchain scalability and security with its dynamic state sharding and hybrid consensus mechanism, enabling efficient, low-cost transactions. Its governance model gradually shifts control to the community, ensuring true decentralization.

The incentivized Atomium Testnet demonstrates Shardeum's commitment to rigorous testing and robust security, engaging the community ahead of the mainnet launch. With 982K+ wallets and 150+ ecosystem projects, Shardeum is well-positioned for an impactful mainnet debut.