Ethereum News Today: Trustless Smart Contract Automates $5M Rewards for FUNToken Holders

FUNToken has launched a $5 million rewards program designed to incentivize its community through a fully audited Ethereum smart contract, according to a Crypto.news report. The initiative, dubbed a "milestone-based staking system," automatically distributes rewards to $FUN holders as the token's price increases, with early stakers receiving larger shares of the payout pool, as noted in a BitcoinWorld article. The program operates transparently on-chain, eliminating intermediaries and ensuring real-time tracking of distributions, according to an AMBCrypto report.

The smart contract activates rewards when $FUN reaches predefined price targets, unlocking portions of the $5 million pool for stakers. Early participants benefit disproportionately, as their stakes secure a larger percentage of each milestone reward. For instance, if three users each stake 10,000 FUN, the earliest staker would receive the highest share of unlocked rewards, AMBCrypto reported. This structure aligns community incentives with the token's growth trajectory, according to a ZyCrypto post.

The platform emphasizes "trustless" mechanics, with the contract undergoing a full security audit by CredShields, Crypto.news reported. Additionally, stakers retain rewards even if price milestones are unmet, as the system distributes "interest" in the form of free FUN tokens, according to a BeInCrypto article. This dual mechanism—combining milestone-based payouts and guaranteed interest—aims to mitigate risks for participants while encouraging long-term engagement, BitcoinWorld noted.

The launch coincides with FUNToken's broader mission to build a transparent Web3 ecosystem, supported by the newly established FUN100x Foundation and integrations across its FT Games platform, AMBCrypto reported. The initiative also underscores the project's focus on community-driven growth, with rewards flowing directly to users without reliance on centralized oversight, ZyCrypto added.

Ethereum's upcoming Fusaka upgrade, set for December 3, could further bolster the network's scalability and security, indirectly benefiting projects like FUNToken that rely on Ethereum's infrastructure, AMBCrypto reported. However, the FUNToken giveaway remains distinct from broader Ethereum developments, focusing exclusively on rewarding its native token holders, BeInCrypto clarified.