FLT Staking FAQ
FLT Staking officially launched on September 20th and since then, around 2.2 million FLT has been staked by our community. The Fluence staking mechanism empowers anyone to play a key role in securing decentralized compute resources by staking FLT tokens - whether directly or through liquidity pooling. Staking enables CPUs to join our network and it makes you a vital contributor to the ‘cloudless’ compute future. We would like to say a big thank you to everyone who has staked with us so far. In this blog post, we are answering a number of questions that we have received from the community. Please consult the staking documentation for more detailed information.
Staking is not available to US residents.
Why should I stake FLT?
The Fluence staking mechanism empowers you to play a key role in securing and provisioning decentralized compute resources. By staking FLT tokens - whether directly on our Staking App or through liquidity pooling via Parasail - you become a vital contributor to the cloudless compute future. When you stake with Fluence, you are not just supporting the platform - you are fueling groundbreaking use cases across the DePIN and AI ecosystems.
Who can stake FLT?
Anyone who holds FLT tokens, and the Fluence NFT - which can be purchased on our marketplace, can stake, either directly via the Staking App, or, for lower amounts, via the Parasail delegation pool.
How are the staking amounts determined?
Each CPU added to the network requires $200 in stake per core to be activated. For a standard 64 core CPU that has 60 active cores (4 provide overhead), $12,000 in FLT is required. If FLT is at $0.30, 40,000 FLT is required to stake. It isn’t possible to stake a fraction of a CPU, but to allow the widest possible participation, we partnered with Parasail which is providing a staking pool that doesn’t have a FLT minimum.
If FLT moves during the stake period do I need to change my staked amount?
No. The amount of FLT required to activate a CPU is determined based on the price of FLT at the time the stake is committed. Once the Capacity Commitment is active, changes in the price of FLT do not impact the amount of stake required. At the end of the Capacity Commitment period, however, if the staker wishes to re-stake, the amount of FLT required to provide the $12,000 stake will be determined by the current FLT price.
How does staking on Parasail work?
If you stake on Parasail, Parasail takes care of the mechanics of entering into Capacity Commitments, and with restaking, when the period expires. Using Parasail, you also have the ability to withdraw your stake earlier. For more information, consult the Parasail delegation guide for Fluence stakers.
How does staking work?
An active Capacity Commitment, in which Compute Units submit proofs that they are ready to serve users' workloads, can be rented by users (developers). Users publish their offer, specifying their compute requirements and the price they are willing to pay.
The Compute Marketplace's smart contract automatically matches offers from Compute Providers and developers, and verifies that both parties' requirements are met. As a result, a Deal is created. Then the CUs transition from the Capacity Commitment Proofs submission to the Deal service mode.
For the time spent computing resources in a Deal, CC's Staker continues to earn rewards in FLT in the same amount as in the Capacity Commitment Proofs mode. This arrangement ensures that stakers' staking rewards generate stable and predictable revenue.
How long is my stake locked for?
Stake enables a CPU to enter into a Capacity Commitment (CC) in which the CPU commits to be online for a defined period of time, ranging from one day to one year, and your stake is committed for the duration of the Capacity Commitment. Currently the Capacity Commitments last one month, but please check the Staking App to make sure you know how long your stake is committed for, as you are not able to exit the stake early.
Can I unlock/exit the stake early?
No. Your stake enables a Capacity Commitment and is locked for the duration of that commitment. Customers who enter into Deals with Compute Providers need to be able to rely on the duration of the compute availability. If stakes could be unlocked early, it would undermine the certainty of their contracted compute availability.
How are rewards calculated?
The Fluence protocol calculates rewards differently from most projects. Fluence targets a $10 reward per core per month, so as the FLT token changes in value, the number of FLT paid to providers also changes to track the target of $10 per core. For a standard 64 core CPU, of which 60 cores are in use, $10 per core per month equates to $600 per month paid in FLT to the Compute Provider of which approximately 20% ($120), ‘the Delegation Rate’, is shared with the staker.
Assuming the FLT price is $0.30, the staker will receive 400 FLT for that month ($120/0.30), subject to a six-month vesting schedule. Note that over the course of the six months, the FLT price will change so the value received will not be $400.
Rewards are paid daily, however, so in the above example, in a 31 day month, the staker would receive 12.90 FLT every day, assuming the price of FLT didn’t change. As the price of FLT changes, stakers will see a different number of FLT tokens every day, as the protocol recalibrates the reward every day to target $10 per core per month.
When a Compute Provider enters into a Deal with a customer, the Compute Provider receives a stablecoin payment, the staker receives the same percentage of that payment (i.e. the Delegation Rate) as they did of the FLT rewards. Note that when being through paid Deals, the revenue is not subject to a lock up and therefore payments are distributed immediately.
Why are my FLT rewards different every day?
The Fluence protocol targets a $10 per core per month ($0.322580) per day and as the price of FLT changes, the amount of FLT paid in rewards changes. For example, for a standard 64 core CPU, the daily reward would be $3.87 per day ($10 reward *60 cores *20% Delegation Rate / 31 days). If FLT was $0.30, on the first day, a staker would receive 12.90 FLT, and if on the next day the FLT price dropped to $0.28, the FLT reward would increase to 13.82 FLT. This daily adjustment is limited to 10%. Note that the FLT reward vests over six months, so the value received will change.
How do I claim my staking rewards?
In order to claim your rewards, head to the Staking App where you will find your staked position in the Capacity Commitments section. The Collateral section shows how many tokens you have allocated to each Capacity Commitment.
Rewards are not available immediately - they will be linearly unlocked over a six-month vesting period. You can withdraw vested tokens anytime, but you won’t be able to access the full amount before the end of the six-month unlock period.
For those staking via Parasail, please consult the Guide for Fluence Stakers.
How often are rewards distributed, and when should I expect them?
Rewards are generated every epoch which is currently 24 hours. Rewards are available to claim after each epoch is completed but are subject to the six-month vesting, as mentioned above. You can check the amount of tokens earned and available to claim in the Rewards section of the Staking App. To find out more visit the staking documentation.
How long is my stake locked up for?
Your stake is locked for the duration of the Capacity Commitment. Capacity Commitments can range from one day to one year. Once a Capacity Commitment is chosen and staked, the Compute Peer tied to it must start generating proofs for capacity starting the next epoch when it will be considered active. From the moment of activation, the Peer must submit the specified number of proofs for their capacity every epoch. The DAO determines the epoch length, which is currently set at 24 hours.
FLT rewards earned each epoch are unlocked (vested) over time to encourage long-term commitment to the Network and consistent value contribution.
Rewards unlock proportionally every epoch (24 hours) at a daily unlock amount of 1/182 of vested rewards for the six-month period.
Let's break this down with a simple example:
- In the 5th epoch, you earn 182 FLT.
- Starting from this moment, for the next 182 days (about 6 months):
- Every day (which is one epoch), 1 FLT (1/182) from this reward becomes available.
- This continues until all 182 FLT are unlocked.
- Now, let's say in the 6th epoch, you earn another 182 FLT.
- The same process starts again for this new reward:
- Every day for the next 182 days, another 1 FLT from this second reward becomes available.
This pattern continues for each epoch where you earn rewards. It's like having multiple timers running at once, each slowly releasing your earned FLT over time.
Note that your reward vesting is subject to the Compute Provider continuing to provide proofs. If the Compute Provider goes off line and/or stops providing proofs, all unvested staking rewards are forfeit.
Why are unvested rewards forfeit if the Compute Provider goes off line/stops providing proofs?
We are building an institutional class compute platform, and customers need to be able to rely on our Compute Providers. We are competing with cloud companies that have spent billions on infrastructure with SLA guarantees. To compete, Fluence needs to architect incentives to provide the same level of service. While stakers certainly would not like to lose unvested rewards, the far larger loss is borne by the Compute Provider who receives the majority of rewards, aligning incentives. We also have partnered with Compute Providers who operate out of top tier data centers, reducing, but not eliminating, the likelihood of service interruption.
Can I sell my NFTs to other users?
Yes, you can sell the NFTs on our NFT Marketplace. To use the NFT Marketplace, you will first need to connect a compatible crypto wallet.
To ensure your wallet is ready for the Staking Application, verify the following:
- Your wallet is compatible with Fluence authentication methods.
- You've added the Fluence Network to your wallet's list of networks.
- You've imported the FLT token, and it's visible in your wallet's token list.
- You have FLT tokens on the Fluence Network. As Fluence is an L2 Network, you must first bridge your FLT tokens from Ethereum to Fluence using the official Bridge. Read more on how to use the Bridge in the official documentation.
Once your wallet is connected to the Fluence NFT Marketplace, it’s time to buy or sell Fluence NFTs.
Will I have to pay for gas on the Fluence Network, e.g. for staking or withdrawal of funds?
The Fluence staking backend is a blockchain application and every interaction, i.e. transaction, incurs a gas fee. However, the fees are very low (due to Fluence operating on its own L2 rollup).
You can check the current gas prices here: https://blockscout.mainnet.fluence.dev/
What is the total FLT staked as of now?
Currently about 2.2 million FLT has been staked.
How can I stake a smaller amount of FLT?
In order to allow the widest possible participation in staking, we have partnered with Parasail, the first restaking protocol that provides on-chain economic endorsement for DePIN services to drive adoption.
You can stake any amount of FLT tokens via Parasail.
Find out more here.
How can I monitor if customers are consuming the provided CPUs?
You can find this information in the Explorer, which presents the current usage of CPUs in the Fluence Network.
How will the Staking Bonus work? Is it a one-time bonus regardless of Capacity Commitment duration?
The 20% Staking Bonus will be allocated to those who staked in the first 100 Capacity Commitments. We will distribute it when 100 Capacity Commitments are reached, with a three-month vesting period.
Will those who staked on Parasail receive a Staking Bonus?
Yes, Parasail stakers will receive a Staking Bonus as long as they are among the first 100 stakers to pool.
Will the staking rewards be vested over six months or unlocked immediately?
Staking rewards are linearly unlocked over the course of a six-month period. Note that unvested rewards are forfeit if the Compute Unit goes off line prior to the end of the Capacity Commitment.
Is there a cooldown period on staking after the staking expires, or can I un-stake immediately?
When your Capacity Commitment expires successfully, you can withdraw your collateral immediately. If your Capacity Commitment finished due to failure (status: Failed), your collateral is subject to a cooldown period of two weeks after which your collateral is available for withdrawal.
Why did you choose Ethereum instead of Solana or another L1?
Speed and quality of development were our main considerations in choosing Ethereum, which has the largest ecosystem of developers with the most available and tested tooling.
What kind of customers are using Fluence? When will new projects start using Fluence?
Our near term target customers for our cloudless compute are Web3 companies, for example third party blockchain node operators. The CPUs currently online are only providing FLT rewards, while we finalize testing rewards, staking and the new VM runtime, as well as the availability and reliability of the committed hardware.
What is your CPU onboarding process?
Every 64 core CPU added to the network requires $12,000 in FLT to be staked. We have a large waitlist of Compute Providers interested in adding capacity, and we are adding CPUs slowly. We will ramp up CPU onboarding as customers join the Fluence Network.
Glossary
Capacity Commitment
A Capacity Commitment is a formal declaration by a provider to offer a specific amount of compute capacity to the Fluence Network for a set period of time. This commitment is made for each Compute Peer (physical server) that a provider wants to commit to the Fluence Network. Capacity Commitments range from one day to twelve months.
Compute Unit (CU)
Providers define their resources as Compute Units (CUs), with each CU consisting of: 1 core, 4 GB of RAM and additional storage space.
Central Processing Unit (CPU)
A CPU (Central Processing Unit) is the primary component of any computer or electronic device. CPUs contain a number of Compute Units which are the core unit in the Fluence Network.
Rewards
Rewards are earned by providing compute capacity or by depositing (staking) FLT in Capacity Commitments (CCs). Rewards are paid daily in FLT and target $10 per month per core. Rewards vest over six months.
Vesting
Vesting refers to the process of locking cryptocurrency tokens for a predetermined period subject to certain conditions, before they can be accessed or transferred. Fluence reward vesting is subject to the Compute Unit being online, and should the Compute Unit go off-line or cease generating proofs, unvested rewards are forfeit.
Delegation Rate
The share of rewards allocated to the staker. Providers set this rate, which we expect initially to be in the 20% range and which will likely change over time.
Compute Provider
Compute Providers commit hardware resources (compute capacity) to the Fluence compute marketplace. This capacity is then available for developers to rent.
Deal
A Deal is the smart contract that links a Compute Provider with a customer. When a Deal is created, a Compute Units transition from Capacity Commitment Proofs submission to the Deal service mode, where they earn revenue in stablecoin as opposed to FLT rewards.
We’re happy to welcome you to the community of Fluence stakers. To join, check the documentation, visit the NFT marketplace, and check out the Staking App. In case of any more questions concerning staking, please consult the documentation and reach out to us via Telegram or Discord.