Summary:
- Floki is proposing the launch of a staking reward token in response to community demand, emphasizing long-term sustainability and added value for token holders.
- The reward token’s features include staking-based earning, liquidity pool creation, and a focus on utility, with a flexible staking period to reduce FLOKI token circulation.
- The launch is expected to secure sustainable staking and avoid liquidity fragmentation, emphasizing the new token’s utility and demand while rewarding long-term FLOKI holders.
- The tokenomics breakdown outlines strategic allocations for staking pools, liquidity pool setup, the Floki treasury, user incentives, and the new token’s staking pool.
- Impending milestones include the activation of the staking program and the launch of Project TL and the Mystery Project, highlighting Floki’s commitment to an inclusive and dynamic token economy.
Floki has recently unveiled a proposal to launch a staking reward token. This move comes as a response to the Floki community’s most requested feature, staking.
According to Floki, this feature’s implementation has been a carefully considered process focused on long-term sustainability. The Floki team does not wish to increase the FLOKI token’s inflation with the new staking token.
Floki’s latest DAO proposal just went live:
SHOULD FLOKI LAUNCH A STAKING REWARD TOKEN?
If this proposal passes:
– The Floki STAKING program and two key roadmap items (Project TL + Mystery Project) will go live on October 27, 2023.
– A reward token will be introduced for the… pic.twitter.com/agVoNdoIU4— FLOKI (@RealFlokiInu) October 18, 2023
Reward Token Features
The proposed token launch embodies key features designed to align with the community’s interests and values.
Staking-Based Earning: The primary method of acquiring this new token will be staking FLOKI tokens. There will be no presale or fundraising round for this token. Instead, it will launch with a small pool on Uniswap and PancakeSwap to ensure liquidity, with the majority of the supply earned through FLOKI staking.
Utility Token: Floki emphasizes that the reward token isn’t just another token but will have substantial utility.
Staking Period Flexibility: Users can earn the reward token by locking up their FLOKI tokens for 3 months to 4 years. This approach is anticipated to reduce the circulating supply of FLOKI tokens, thereby increasing their value.
Strategic Partnerships
As per the proposal, Floki has also entered into strategic partnerships with several reputable institutions and projects, with more details to be revealed in due course.
One notable partnership is with DWF Labs, an institutional player in the crypto space, which will serve as the main market maker and institutional partner for the proposed token.
Further, a number of centralized exchanges (CEXs) are reportedly in the plans to list the reward token on their platforms after launch, pending approval from the Floki DAO.
Effect on Floki Token
A critical concern often associated with the introduction of a new token is the potential fragmentation of liquidity between the existing and new tokens. However, according to the team, Floki has taken careful measures to ensure that the proposed new token’s distribution will be primarily linked to staking FLOKI tokens, thereby if approved it can enhance the liquidity of FLOKI. This strategy will effectively remove FLOKI tokens from circulation through staking, making the circulating supply hyper-deflationary in the short to medium term.
By catering to a target audience interested in the token’s utility, the team aims to attract new users without neglecting the benefits for existing FLOKI holders.
Tokenomics for New Token
The proposed staking token by Floki will have an allocation strategy for its 10 billion tokens. Let’s take a look at the token allocation:
- 56% for Floki Staking Pools: A significant portion of the token supply will be directed towards the Floki staking pools, incentivizing FLOKI token holders to actively participate in the ecosystem. Additionally, a thoughtful 2% allocation will be designated for Floki NFT holders and Diamond Hands holders, reinforcing the team’s commitment to rewarding loyal community members.
- 10% for Liquidity Pool Setup: A strategic portion will establish a robust liquidity pool on the Ethereum and Binance Smart Chain, promoting token accessibility and exchange across different platforms.
- 22% for Floki Treasury: An essential allocation will be dedicated to fueling development activities, operations, and marketing initiatives for the new token and the overarching Floki ecosystem. Moreover, a portion of this allocation will be reserved for team incentives, aligning with the team’s commitment to fostering sustained growth and innovation.
- 5% for User Incentive Program: A portion will be allocated to incentivize user adoption, emphasing on community engagement and participation.
- 7% for New Token’s Staking Pool: To ensure the stability and longevity of the new token, a dedicated staking pool will be established.
Impending Milestones and Objectives
In the event of the successful approval and execution of the proposal, Floki has laid out a comprehensive roadmap with three key milestones set for immediate execution, scheduled to commence on the 27th of October, 2023. These crucial objectives include the activation of the Floki staking program, the initiation of Project TL, the foundational platform supporting the new token, and the unveiling of the Mystery Project, representing the reward token’s underlying concept.
In addition, Floki recently announced a major upgrade to its FlokiFi Locker, amidst the Floktober excitement. As of the update, FlokiFi will now support assets hosted on Base and opBNB.
