Token

Introduction to FLO

FLO is the essential token of the Fluid protocol, designed to capture the fee revenue generated by the system and to incentivise participants within the Sei DeFi ecosystem. Unlike traditional governance tokens, FLO serves as a utility and reward token, crucial for engaging and rewarding users who contribute to the stability and growth of the Fluid ecosystem.

Earning FLO

Users can earn FLO through various activities within the Fluid ecosystem:

  1. Stability Pool Contributions: Users who deposit Sai into the Stability Pool.

  2. Liquidity Providers: Participating in liquidity pools that include Sai pairings.

These rewards are not based on claims against Fluid or any external entity but are automated through the protocol's functionalities.

FLO's Maximum Supply

The total supply of FLO is capped, ensuring a finite resource that accrues value as the Fluid ecosystem expands. The exact maximum supply is TBA, aligning with our strategic planning for sustainable ecosystem growth.

FLO's Non-Governance Role

FLO is distinct in its role as it does not confer governance rights. The Fluid protocol operates without a traditional governance model, emphasising an automated, decentralised system.

Utilising FLO

FLO holders can engage in several activities within the Fluid ecosystem:

  • Staking FLO: By staking FLO, users can earn a portion of the fees generated by the protocol, such as loan issuance and Sai transactions.

  • Participation in Ecosystem Activities: FLO may also be used in various other capacities within the Fluid ecosystem, details of which will be outlined as the platform evolves.

Distribution Schedule of FLO

FLO's distribution is planned to reward early adopters while sustaining long-term incentives. The schedule follows a phased approach, with details TBA, aimed at maximising early participation and gradually reducing emissions over time.

Allocation of FLO

The allocation of FLO tokens will be strategically divided among several key stakeholders:

  • Ecosystem Incentives: A significant portion of FLO is reserved for incentivising users' actions within the Fluid ecosystem.

  • Core Contributors: Recognising the efforts of those who develop and maintain the Fluid protocol.

  • Early Supporters: Allocated to individuals and entities who have significantly contributed to the inception and development of Fluid.

  • Community Reserve: A reserve for future endeavours and unforeseen opportunities.

  • Other Allocations: Additional allocations may include partnerships, liquidity incentives, and community initiatives.

Incentive Distribution

FLO's incentive distribution is meticulously planned to align with the ecosystem's growth. The exact distribution mechanism and schedule will be detailed at a later stage, ensuring a fair and effective allocation of resources to support the Fluid ecosystem's expansion.

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