Supply

The tokenomics of FlowSwap Protocol (FLOW) are designed to incentivize participation, ensure platform security, and facilitate a fair and sustainable ecosystem for all users, particularly focusing on rewarding Liquidity Providers (LPs) generously. Here, we outline the comprehensive structure of FLOW's tokenomics, detailing the allocation, distribution mechanisms, and incentives that underpin the platform's economy.

Total Supply and Distribution

Total Supply: 1Billion

Allocation:

  • Liquidity Providers (LPs): 90% of the total FLOW supply is allocated to reward LPs. This substantial allocation underscores FlowSwap's commitment to incentivizing liquidity provision, which is critical for the platform's efficiency and competitiveness.

  • Development Fund: 5% of the total supply is reserved for the development fund, dedicated to ongoing platform improvements, feature development, and covering operational costs.

  • Community and Marketing: 3% is allocated for community initiatives, marketing, and partnerships to drive adoption and growth of the FlowSwap Protocol.

  • Team and Advisors: 2% is allocated to the founding team and advisors, subject to a vesting schedule to align their interests with the long-term success of the platform.

Reward Mechanism for Liquidity Providers

  • Dynamic Reward Distribution: FLOW tokens distributed to LPs will be based on the amount of liquidity they provide and the duration for which it is maintained. This dynamic distribution mechanism ensures that rewards are aligned with the value each LP contributes to the ecosystem.

  • Vesting Period for LP Rewards: To encourage long-term liquidity provision and platform stability, a portion of the rewards earned by LPs will be subject to a vesting period. This approach balances immediate incentives with long-term commitment.

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