Chapter 1: Flambu’s Tokenization “Sharing Economy on Web3”
Flambu is a community-centric marketplace that lets people share and borrow items in their vicinity powered by blockchain. Flambu features a two token model ($FLAME and $FLAMBUCKS) for enhanced peer-to-peer renting of anything, with a decentralized trust and fast low-cost payments. In this article, we would like to explain our token economics.
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Two Token Approach
The token economics in Flambu:
Flame ($FLAM): ERC20 token that follows a bonding curve model that sets its price at any given point in time and a deflation mechanism.
Flame token’s utilities are three-fold:
1- Loyalty: Incentivize participation in the network: Reward value-adding actions.
2- Insurance: Create and maintain robust trust within P2P transactions with a locking mechanism that rewards good transactional outcomes, and counter dishonest behavior.
3- Governance: As a platform owned and operated by its users, the future of Flambu is entirely driven by $FLAM governance. Everything about Flambu is governable, with the voting weight directly correlated to $FLAM staked for value-added services
Flambucks ($FBX): ERC20 token pegged to $USD and backed by other stable tokens such as Fuse Dollars (fUSD). Flambucks tokens are used for fast, cheap & secure P2P payments on the Flambu platform. Users of Flambu will see their $FBX token balances in their local (or selected) fiat currencies.
At the Token Generation Event (TGE) in Q1 2022, the Flame token will be launched on the Fuse blockchain as an ERC-20 token.
The maximum total supply will be 1 billion FLAM.
The supply is initially allocated as shown in the following chart:
The funds raised will assist with the initial development and operation of Flambu’s platform, DAO, and support services.
Flame Loyalty Metrics
Flambu encourages community participation by rewarding activities of various types within the Flambu economy, creating opportunities for members to be rewarded in FLAM for their time and effort. To ensure that these activities are performed by participants whose interests are aligned with the interests of the wider Flambu community, participation is often exclusive to FLAM token holders who have allocated a minimum amount of FLAM.
The rewarding activities are divided into the following types, and Flambu DAO may add more rewarding activities in time:
1- Onboarding Incentives
2- Super Users
3- Airdrops
4- Community Support Program
Onboarding Incentives
To incentivize rapid growth in the number of community members during the early stages of Flambu, the first users to join and being active in Flambu will receive FLAM rewards according to their contributions. The rewards are highest at the beginning and will be halved by a deflation mechanism each time when a threshold of transactional volume has been reached in the platform. The first threshold is set to $10K of transactions volume. Then each threshold will be 10x of the previous threshold.
Community members will also be rewarded for referring new users to Flambu who complete the registration process and rentals. The rewards will be paid to the users’ Flambu wallets which are created upon registration.
Super Users
Super Users are users that are highly active community members who show exceptional performance in the Flambu platform. The criteria for eligibility, rewards for Super Users, and the budget for the program will be determined by the Flambu DAO after initial financing rounds.
Airdrops
Flambu will consider airdrops of FLAM to other communities that have a high synergy potential with Flambu. Such airdrops will be funded by the Growth Fund.
Community Support Programs
Flambu’s key differentiation from other sharing economy platforms is that Flambu’s goal is to operate as a Decentralized Autonomous Organization (DAO). With membership in a DAO represented through FLAM tokens, it is possible to have more engaged and loyal community members who contribute long-term value thanks to the well-structured token economics.
Flambu will encourage community participation in the new generation sharing economy with the native FLAM token. Community participation includes the necessary support operations such as onboarding, answering questions, and helping other community members, dispute resolution, and content reviews which are traditionally highly expensive, which in turn results in high fees charged by the traditional platforms. This means that Flambu will be a true sharing economy, where not only stuff is shared by people, but also the value created, as well as necessary tasks to make the platform successful will also be shared between community members.
By taking roles in the Community Support Program, community members will be able to put their FLAM tokens at stake, while resolving issues and supporting other community members, and in return have a chance to earn more FLAM tokens.
The Community Support Program consists of a wide range of tasks, with different levels of requirements, including skills, expertise, and FLAM tokens to be staked. Initially, the tasks will be handled by the core team of Flambu and they will be progressively transferred to the community as an effort to make the platform more decentralized in time.
The Community Support Program will be funded by the Community Treasury, and the number of tokens for each task will be determined by Flambu DAO according to the complexity of each task and the expertise required to perform them.
Flambucks Metrics (FBX)
FBX is the stable token of Flambu used for secure, low-cost, and fast P2P payments on the Flambu platform
- FBX is backed by other stable tokens
- FBX is minted when a user makes a payment through the platform and burnt when a user cashes out the FBX
- The reserve tokens of FBX generate yield on several DeFi protocols, and the proceeds from these are sent to the community treasury, which will be partially distributed to the community several incentive programs
FBX tokens will always appear to the user as their local or chosen fiat currency in the app to avoid confusion and simplify the user experience. More advanced users will be able to trade their FBX tokens with other tokens once the functionality is added to the app.
Flambu DAO
The Flambu community has chosen to structure and govern itself as a decentralized autonomous organization. To achieve this goal, Flambu will develop its constitution and governance framework after initial financing rounds and a Representative Council will be elected by initial FLAM token holders.
The Flambu DAO will control three funds:
- Growth Fund
- Community Treasury
- Insurance Pool
Growth Fund
Growth Fund will manage the Onboarding Incentives and Airdrops.
Community Treasury
The Community Treasury has an initial allocation of 25% of the maximum supply of FLAM and receives all effective total fees collected from rentals. The Flambu DAO defines how the assets in the Community Treasury are to be managed, used, and granted. The Flambu DAO will design processes to use the Community Treasury to fund projects from community members for the benefit of the Flambu community and the ecosystem, as well as token burn events in order to increase deflation of the FLAM token from time to time.
Insurance Pool
One of the key concerns for item owners is protection from damages and theft. To ensure that sufficient funds are readily available to assist item owners when such events occur, Flambu will have an Insurance Pool which may assist item owners with up to US$10,000 initially, subject to terms and conditions.
As part of Flambu’s asset management practices, the Flambu DAO’s Insurance Pool team will:
- Gradually convert the Insurance Pool’s funds to stable tokens;
- Stake part of the Insurance Pool’s funds to yield-generating DeFi protocols to grow the pool while managing risk.
The Flambu DAO is committed to granting loans from the Community Treasury to the Insurance Pool, in case the Insurance Pool needs additional funds to assist lenders.
Conclusion
Tokenization offers many advantages, especially in Flambu’s case:
- Flame tokens will follow vesting so that believers and supporters of the project can always invest in the project’s future and own a stake
- Flame Loyalty Metrics can continuously redistribute revenues to the Flame holders as a means of dividends, generally represented as a price increase of Flame tokens.
- Reserves will provide a certain amount of liquidity on the one hand, and on the other hand, investors are always incentivized to keep their tokens for the long term
- DAO optimized to finance the project’s development and operations including the specific need for a decentralized insurance solution in Flambu’s use case
- At later stages, Flames and Flambucks will be on the secondary markets so that it will ensure the prices on the secondary markets are fair all the time
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