Flamingo Releases FLM Tokenomics
We’re excited to announce the release of the Tokenomics behind the Flamingo token, FLM.
The term Tokenomics essentially means the math and incentives governing cryptocurrency assets (coins and tokens). Specifically the supply, circulation, issuance, distribution, inflation, and burning of tokens of a cryptocurrency; in this case, FLM.
The main purpose of the FLM token is to incentivize liquidity providers on the Flamingo Finance platform as well as to get users involved with the platform.
Token Supply and Circulation
To understand a bit more about supply and circulation, first let’s take a look at the original cryptocurrency: Bitcoin. Bitcoin was created with a supply curve that is emitted over about 140 years.
There will only ever be 21 Million bitcoin, and they’re released at a rate that gets cut in half every four years or so. At the time of writing, roughly 19 Million bitcoin already exist; there are 2 Million more to be released over the next 120 years.
Similarly, FLM has a hard cap of 1 Billion FLM tokens, to be minted and released into circulation over the next 17 years.
The total supply of FLM will be fully minted and released into circulation by the end of 2039. At that time, the goal is to have Flamingo platform liquidity providers and holders in the DEX-Traded Fund (DTF), Flamingo Flund incentivized by being rewarded in platform fees alone.
At the time of writing, 342 Million (about 1/3 of the total supply) FLM tokens have been minted and are in circulation since October, 2020.
Minting and Inflation
New FLM tokens are minted in real time and rewarded to Flamingo platform users for providing liquidity and/or for holding a portion of the Flamingo Flund. This ongoing minting and rewarding inherently means there is inflation of the token, however the inflation rate is not infinite, and is slowing down over time.
During October, 2020, the first full month of minting after the platform was released, the annual inflation rate of FLM was 100%. This is because at that point in time, all FLM in circulation was minted during that month. The inflation rate has dropped every month since.
At the time of writing (April, 2022), the monthly inflation rate of FLM is 3.2%. In May, 2022, the monthly inflation rate will drop to 3.1%. Come December, 2022, the monthly inflation rate will drop to 2.55%.
The monthly inflation rate will continue to decrease monthly until January, 2033. It will then drop again January, 2037, and again October, 2039. All 1 Billion FLM tokens will be minted and released by the end of 2039. For a more complete timeline, check out the table on our FLM Tokenomics page in Flamingo Learn.
Lockup and Burn
At the time of writing there is no token burn associated with FLM now or in the future. FLM can be locked up when participating in an Initial DEX Offering (IDO). Additionally, some may consider FLM invested in the DTF Flamingo Flund to be “locked up.”
Flamingo Finance is an easy-to-use DeFi platform built on Neo N3. Designed with Smart Functions for everyone, from beginners to advanced cryptocurrency users. https://flamingo.finance/
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