Flamingo Finance has revised its FLM tokenomics documentation to align with the latest launch of FLOCKS, the platform’s dividend-bearing token. The replace introduces deflationary components to Flamingo’s present inflationary minting construction, together with a brand new buyback-and-burn initiative and the burning of FLM tokens as a part of the FLOCKS minting course of.
Presently, Flamingo customers obtain newly minted FLM tokens for offering liquidity and holding FLOCKS, which represents a stake within the platform’s revenue-generating actions. Whereas this method maintains an inflationary construction, Flamingo famous that the speed of inflation is decelerating over time.
FLOCKS nevertheless integrates a direct burn mechanism—every token minted requires burning one FLM. This has already eliminated 109.9 million FLM from circulation, equal to over one 12 months of present FLM minting emissions. The impact has lowered FLM’s whole arduous cap from 1 billion to 700 million, with all tokens anticipated to be minted and in circulation by the tip of 2039.
FLOCKS holders obtain a share of platform income, distributed in belongings together with FLM, bNEO, GAS, FUSD, fWETH, fWBTC, fUSDT, and fBNB.
Starting this month, Flamingo may even conduct buybacks to additional scale back circulating FLM. Shifting ahead, the whole and circulating provide of FLM will now be decided by the system: belongings minted minus belongings burned.
In its early years, FLM skilled excessive inflation. In October 2020, the annual inflation charge was 100% as the whole circulating provide was minted inside a single month. That determine has constantly declined. As of April 15, FLM’s month-to-month inflation charge is 0.68%. This can fall to 0.32% by January 2026, persevering with to lower month-to-month till January 2035. At that time, it’ll stabilize at 0.46% yearly till minting concludes in 2039.
The up to date tokenomics mannequin may be reviewed intimately by way of Flamingo’s official GitBook documentation under:
https://flamingo-1.gitbook.io/user-guide/flm-tokenomics
