How Dapper Works With Fungible Tokens
How Dapper Works With Fungible Tokens

How Dapper Works With Fungible Tokens

How Dapper Works With Fungible Tokens

You may be familiar with non-fungible tokens (NFTs), but what about fungible tokens? A fungible token is not unique, it’s identical and dividable. Dapper works with 3 internal non-transferable fungible tokens exclusively: Dapper Utility Coin (DUC), Flow Utility Token (FUT), and Flow token.

How Dapper uses the internal and non-transferable DUC and FUT Tokens

DUC and FUT are ecosystem tokens used for Dapper’s users ability to interact with smart contracts that require fungible tokens. Both are never held within user accounts. They are only used for interacting with smart contracts, which are on-chain APIs and open source APIs that run on Flow, which anyone can leverage and perform actions. You can think of DUC and FUT as utility tokens that enable Dapper to reconcile transactions occurring off-chain, on-chain, and ledger transfers (without associated token movements).

These fungible tokens cannot be used or moved externally outside of the Dapper ecosystem and have no intrinsic or extrinsic value outside of their utility for internal reconciliation.

How Dapper uses Flow Token

Dapper uses Flow Token in 3 ways:

  • For Transaction fees
  • For storage fees
  • Custodies Flow token for purchases.

How Dapper pays for Transactions

Dapper uses the Flow Transaction role of Payer for all transactions proposed from their users.

Dapper acts as Payer for all users transactions. We take on this role as a wallet and a service, thus users don’t have to pay to interact with Dapper or the Flow blockchain.

How Dapper pays for Storage

Dapper monitors and pays for storage on behalf of the user. You can see this by checking the user’s account on Flow. The Flow tokens in there are only used for Storage fees. Dapper monitors every single user account for their space of available storage capacity. When available capacity gets below 60 kb, then Dapper will top off the account with 100 kb (0.001 Flow) to give them more storage capacity.

Flow tokens that are within a user account are only used for Flow storage fees. Storage fees were put in place to regulate the growth of data stored on the Flow blockchain. We scan the blockchain to top off storage when needed, therefore dApps do not need to top off storage.

How Dapper custodies Flow Token

If you send Flow externally to a Dapper account with a Flow Address , that account will forward to a third-party custodian to hold on behalf of our users.  With Flow stored with our custodian you then will be able to withdraw Flow or purchase items within our platform.