Fluence Tokenomics Explained

Fluence Tokenomics Explained

This blog post covers the aspects of the FLT token economics and distribution to the Fluence DePIN platform participants and the wider ecosystem. The distribution of FLT is a crucial step towards empowering the community to govern the Fluence network in a genuinely decentralized way.

Note: FLT tokens are not available to purchasers in the U.S.

Token Distribution

  • Token Symbol: FLT 
  • Total Token Supply: 1,000,000,000 FLT
  • Initial Circulating Supply: 50,000,000 (5%)
  • Release in year 1:
    • 50,000,000 (5%) was allocated to a developer reward program that began on February 27th. The tokens are locked for two months from the claim date and begin releasing on April 27th
    • Rewards paid to storage providers will be paid from main net launch on March 20th. These rewards are dependent on the amount of compute added to the network and are locked for three months.
    • ~45% of the total FLT supply allocated to the team and to investors is locked until February 2025 and then will unlock daily until February 2026

Token Address: 0x236501327e701692a281934230AF0b6BE8Df3353

Circulating Supply

The first month’s $FLT supply is bounded by 5% of Liquidity Bootstrap Pool/Market making. After its completion, the main sources of new circulating supply will be the following:

  • Vested tokens for Fluence Labs and investors
  • Token Rewards for compute capacity providers
  • Claimed developer rewards 

In the second year, $FLT supply incorporates the release of investor and team tokens with an additional ~12% projected to be spent out of the treasury.

Token Use

Staking with Compute Providers 

Compute providers contribute their compute supply to the network in exchange for $FLT rewards, but participation as a compute provider also requires staking for each added CPU. As the compute network grows and increases its capacity, the demand for FLT stake grows. This stake also ensures accountability and reliability within the network. As providers fulfill customer compute jobs, this stake serves as a guarantee that jobs are executed correctly, otherwise the stake will be lost. 

Voting in the DAO

$FLT holders may create and vote for governance proposals using their tokens. The Fluence DAO uses the Governor model, so voting power can be delegated to other community members or self-delegated. Proposals may include:

  • Treasury management: capital allocation to a variety of activities, including development of the protocol, marketing, and funding liquidity pools and various incentive programs
  • Protocol upgrades: maintaining, signaling and updating the protocol 
  • Social: partnerships, integrations and other ad-hoc community proposals 

Where to purchase FLT

FLT is listed on Bybit and Gate.io.

Current FLT information is found on CoinGecko.

Join the Fluence community

  • Join the discussion on the Governance forum 
  • Check your eligibility for the developer airdrop (coming tonight at 7 pm ET)
  • Stay updated on the Fluence Network’s developments through the official Twitter account