FLEXDAO works similarly to many other DAOs, by giving governance and voting abilities to users who stake their FLEX Coins; these abilities are represented by veFLEX tokens (or voting FLEX). veFLEX allows users to create and vote on issues they believe are important for CoinFLEX.
In addition, FLEXDAO will reward users with additional FLEX Coins at the end of their staking period. CoinFLEX will allocate 10% of our profits and 10% of revenues to FLEXDAO, which will be allocated pro-rata to each user of the DAO (i.e., If you own 10% of the FLEX Coins in FLEXDAO, you would earn 10% of the revenue and profit rewards distributed by CoinFLEX).
How long can you stake your FLEX?
With FLEXDAO, you can stake your FLEX for as little as two weeks and as long as four years. Keep in mind, once you decide to stake your FLEX, the assets are locked up in the DAO until your chosen staking period is over.
Your FLEX will be locked up in a smart contract for varying lengths of time, depending on the period you choose:
1 Month (4 Weeks)
3 Months (12 Weeks)
6 Months (26 Weeks)
1 Year (52 Weeks)
2 Years (104 Weeks)
3 Years (156 Weeks)
4 Years (208 Weeks)
Your FLEX to veFLEX ratio is determined by how long you stake for. If you stake for four years you have a 1:1 ratio
of FLEX to veFLEX. If you stake for two years you have a 1:0.5 ratio of FLEX to veFLEX, and so on. The ratios are as follows:
FLEXDAO Economics and Voting
Your FLEX rewards =
(Your veFLEX / total veFLEX) * Total number of FLEX to be distributed to DAO stakers
Your voting power =
Your veFLEX/ Total veFLEX
How does FLEXDAO affect FLEX, and what is the long-term impact?
FLEXDAO is deployed on SmartBCH — a sidechain of the Bitcoin Cash blockchain. FLEXDAO statistics are fully transparent and available for anyone to view at any time. This transparency means that potential and existing FLEX holders can gain valuable insights by referencing FLEXDAO to view the percentage of the FLEX supply that is locked up (i.e, not being sold) for staking rewards.
For example, the circulating supply of FLEX is currently 98,735,764M. If 20M FLEX were locked in the DAO for the next 4 years, the real circulating supply would be 78,735,764M FLEX (98,735,764M circulating supply – 20M locked supply). Assuming the supply for FLEX goes down by 20M, and demand stays the same, FLEX should theoretically be more valuable for investors and HODLERs alike.
Long Term Impact
- Gives FLEX Coin holders a stronger voice on the direction of CoinFLEX’s future through DAO participation
- Provides a more transparent channel of communication for the CoinFLEX community through governance and voting capabilities
- Allows users to earn rewards from CoinFLEX’s profits and revenue
- Prevents locked tokens from being sold off during volatile market price action
- Encourages the long-term success of FLEX