We will consider the tokenomics of the Flux Protocol.
Let’s talk about the project token $FLX, token distribution, and other necessary things.
An original article on tokenomics can be found at this link: https://fluxprotocol.medium.com/a-guide-to-flx-token-economics-c70357e03f29
Introduction
I want to start our review by reminding you what the Flux Protocol is.
So, Flux Protocol is a decentralized Oracle aggregator that supports cross-chain integration.
This short explanation, much more, you can read in my article where I talk about the project: https://medium.com/@forest94/flux-protocol-project-overview-d9419e5a7fe2.
Next, we will talk about the $FLX token and its features.
Review of the token and its features
The Flux Protocol project token is called FLX.
This token is very important for the project. This is important for the stability of the project network. Thanks to staking and governance, the network and the project will be able to function properly.
Let’s take a closer look at the features that the $FLX token provides:
- Network protection and stability
Project tokens can act as collateral. Nodes must provide these tokens as collateral when data requesters want to obtain information for their requests. This system can also be used when challenging data results. It is really important that the nodes work properly and provide only relevant and truthful information. And thanks to collateral, this will happen in most cases. - Flux DAO
Token holders can vote for network and project changes. Due to this, the management of the project will be decentralized, and it will only benefit! - Whitelist of other protocols
As mentioned earlier, Flux Protocol is an Oracle aggregator. And that means other protocols can interact with that.
And to get whitelist for this, any protocol needs to submit a proposal to Flux DAO while attaching $FLX tokens. And only after the approval of the DAO, the new protocol will be able to create data requests in the Flux Protocol network. - Oracle modules
In order for developers to be able to deploy new Oracle modules in our network, they must contact the DAO. After accepting the proposal, $FLX tokens are used to ensure this process.
Token supply and distribution
The maximum token supply of $FLX is 1,000,000,000 (1 billion).
Let’s consider the distribution of the token first on the chart, and then in more detail for each group.
It should be noted that all lockups and vestings must be counted after Qualified Network Launch. That is, in fact, the starting point for calculations! This launch has not yet taken place. Follow the announcements!
Explanation of terms:
lockup — the period of blocking tokens for a particular group. For example, a 6-month lockup means that 6 months after Qualified Network Launch, tokens will be received by members of a certain group;
vesting — in our case, during which time the tokens will be available for transfer. For example, a 12-month linear vesting period means that for 12 months the tokens will be divided into equal parts.
Another important explanation:
6-month lockup followed by a 24-month linear vesting period — 6 months after Qualified Network Launch tokens will not be distributed. After this time, for 24 months the assigned tokens will be distributed in equal parts. The last receipt of tokens will take place at 30 months (6-month lockup + 24-month linear vesting).
Distribution details
- 28.8% (288,163,296 $FLX) — Core Contributors — designed for core team and contributors who have helped out to the development of the project.
6-month lockup followed by a 24-month linear vesting period. - 2.6% (26,750,000 $FLX) — Advisors — appointed advisors of the Flux Protocol. They have made an invaluable contribution to the development of the project ecosystem.
6-month lockup followed by a 24-month linear vesting period. - 14.96% (149,583,333 $FLX) — Founding Distribution— provided for founding contributors — they provide tools and resources for the full functioning of the Open Oracle Association. They also play an important role in the Flux Protocol project, namely in the development of its ecosystem.
6-month lockup followed by an 18-month linear vesting period. - 8.45% (84,500,000 $FLX) —Strategic Contributors — provided by our strategic contributors, which play an important technical role for the network. One of their roles is included as the work of validators.s.
4-month lockup followed by a 24-month linear vesting period. - 19.10% (191,002,751 $FLX) — Treasury— allocated to the Treasury to support the Flux Protocol network and ecosystem. Initially, the Treasury will be overseen by the project team and active and responsible contributors. Later, all complete management will be transferred to the DAO, when decentralization will be in full swing and the Treasury will be controlled by token holders.
- 15.00% (150,000,000 $FLX) —Developer Mining— will be provided as mining incentives for the developer, who will develop Requesters and modules and place them on the network. New protocols that will be integrated into Flux Oracle will receive tokens for that.
- 5.00% (50,000,000 $FLX) —Ecosystem Fund— will be provided to the developer community. These developers will help to deploy on the provided Layer Ones / Twos, with which Flux will integrate.
- 3.00% (or 30,000,000 $FLX) — Validator Incentives— will receive validators in the form of liquidity and staking incentives for 4 years from the time of Launch.
- 3.00% (or 30,000,000 $FLX) — Public Distribution— intended for Public Distribution, which will take place via copper launch (LBP). The price at this auction will start at $2 and will vary depending on demand. Also, tokens in this group are designed to stimulate liquidity on DEXs.
And even more information about the project can be found here:
Official site: https://www.fluxprotocol.org
Docs: https://docs.fluxprotocol.org/docs
Blog: https://www.fluxprotocol.org/blog
Twitter: https://twitter.com/fluxprotocol
Linkedin: https://www.linkedin.com/company/fluxprotocol
Discord: https://discord.com/invite/sJUveAvJHf
Telegram: https://t.me/fluxprotocol
GitHub: https://github.com/fluxprotocol
