# FLM Tokenomics

*Version 3.1, September 2, 2025*

The main purpose of the FLM token is to incentivize liquidity providers on the Flamingo Finance platform, to get users involved with the platform, and to incentivize [FLUND](https://flamingo-1.gitbook.io/user-guide/modules/earn/flamingo-flund-single-stake-fund) and  [FLOCKS](https://flamingo-1.gitbook.io/user-guide/flamingo-flocks) holders for investing in the platform.

## **Token Supply and Circulation**

The hard cap of circulating FLM tokens is currently **700 Million** FLM tokens. **800 Million** FLM tokens will have been minted and released into circulation **by the end of 2039**, and **over 100 Million** have already been burned as outlined below, thus the hard cap is now **700 Million** FLM tokens (**800 Million** minted - **100 Million** burned).

The original hard cap of FLM was **1 Billion** FLM tokens but FLM has reduced in minting faster than originally anticipated.

FLOCKS minting will continue burning FLM as outlined below, and has already lowered the FLM hard cap to **700 Million**.\
\
The total supply will be fully minted and released into circulation **by the end of 2039**.

With the introduction of [FLOCKS](https://flamingo-1.gitbook.io/user-guide/flamingo-flocks), From April, 2025, Flamingo will start to buy back and burn FLM, while users can also burn FLM to get a share of platform revenue (FLOCKS). This will make an impact on the total and circulating supply moving forward as the supply will always equal: `assets minted - assets burned`

At the time of writing (Epoch 3 of FLOCKS), **115 Million** FLM have been burned from minting FLOCKS, equal to **over 1 year** of current FLM minting emissions.

## **Minting and Inflation**

<figure><img src="https://163720225-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MF51IxRGNnItCO-H_yy-887967055%2Fuploads%2FFBAAmfRHdGUGd2urAVnw%2Fimage.png?alt=media&#x26;token=1225681b-bd4d-40c5-988f-51942e71c56e" alt=""><figcaption><p>FLM Monetary Inflation</p></figcaption></figure>

**Note:** The graph above does not show FLM burned and only accounts for total FLM minted.

New FLM tokens are minted in real time and rewarded to Flamingo platform users for **providing liquidity** and/or for owning a piece of the platform (holding [FLOCKS](https://flamingo-1.gitbook.io/user-guide/flamingo-flocks)). This ongoing minting and rewarding inherently means there is inflation of the token, however the inflation rate is not infinite, and is slowing down over time, especially with token burning from FLOCKS and Flamingo's new buy back and burn program.

During **October, 2020**, the first full month of minting after the platform was released, the annual inflation rate of FLM was **100%**. This is because at that point in time, all FLM in circulation was minted during that month. The inflation rate has dropped every month since.&#x20;

At the time of writing (**April 15, 2025**), the monthly inflation rate of FLM is 0.6&#x38;**%**. Come **January, 2026**, the monthly inflation rate will drop to 0.3&#x32;**%**.&#x20;

The monthly inflation rate will continue to **decrease monthly** until **January, 2035, where it will remain 0.46% annually until all** 8**00 Million FLM tokens** have been minted (Less than **700 Million** after burned FLM are accounted for) and released **by the end of** **2039**. See the table below for a more complete timeline.&#x20;

<table><thead><tr><th>Month and Year</th><th width="188.44039929536112">FLM Minted Monthly</th><th width="198.85714285714286">Monthly Inflation Rate*</th><th>Annual Inflation Rate**</th></tr></thead><tbody><tr><td>April, 2022</td><td>10,870,312</td><td>3.54%</td><td>91.07%</td></tr><tr><td>January, 2023</td><td>10,870,312</td><td>2.48%</td><td>41.02%</td></tr><tr><td>January, 2024</td><td>10,870,312</td><td>1.91%</td><td>29.09%</td></tr><tr><td>January, 2025</td><td>4,598,142</td><td>0.68%</td><td>17.12%</td></tr><tr><td>January, 2026</td><td>2,282,766</td><td>0.32%</td><td>5.18%</td></tr><tr><td>January, 2027</td><td>1,217,475</td><td>0.17%</td><td>3.32%</td></tr><tr><td>January, 2028</td><td>973,980</td><td>0.13%</td><td>1.89%</td></tr><tr><td>January, 2029</td><td>700,048</td><td>0.09%</td><td>1.35%</td></tr><tr><td>January, 2030</td><td>547,864</td><td>0.07%</td><td>1.01%</td></tr><tr><td>January, 2031</td><td>426,116</td><td>0.06%</td><td>0.79%</td></tr><tr><td>January, 2032</td><td>334,806</td><td>0.04%</td><td>0.60%</td></tr><tr><td>January, 2033</td><td>304,369</td><td>0.04%</td><td>0.49%</td></tr><tr><td>January, 2034</td><td>304,369</td><td>0.04%</td><td>0.47%</td></tr><tr><td>January, 2035</td><td>304,369</td><td>0.04%</td><td>0.46%</td></tr><tr><td>January, 2036</td><td>304,369</td><td>0.04%</td><td>0.46%</td></tr><tr><td>January, 2037</td><td>304,369</td><td>0.03%</td><td>0.46%</td></tr><tr><td>January, 2038</td><td>304,369</td><td>0.03%</td><td>0.46%</td></tr><tr><td>January, 2039</td><td>304,369</td><td>0.01%</td><td>0.46%</td></tr><tr><td>January, 2040</td><td>0</td><td>0.00%</td><td>0.00%</td></tr></tbody></table>

\* Calculated by dividing the supply on the date in the "Month and Year" column with the supply from one month earlier, minus 1: `current supply / earlier supply - 1`.

*\*\** Calculated by dividing the supply on the date in the "Month and Year" column with the supply from one year earlier, minus 1: `current supply / earlier supply - 1`.&#x20;

*Note: The FLM Monetary Inflation table was updated on April 15, 2025.*&#x20;


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