We describe the tokenomics of Flamingo's FLM token.
The main purpose of the FLM token is to incentivize liquidity providers on the Flamingo Finance platform as well as to get users involved with the platform.
Token Supply and Circulation
There is a hard cap of 1 Billion FLM tokens, to be minted and released into circulation over the next 17 years. The total supply will be fully minted and released into circulation by the end of 2039. At the time of writing, 337.6 Million (about 1/3 of the total supply) FLM tokens have been minted and are in circulation.
Minting and Inflation
FLM Monetary Inflation
New FLM tokens are minted in real time and rewarded to Flamingo platform users for providing liquidity and/or for holding a portion of the DEX-Traded Fund (DTF), Flamingo Flund. 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.
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.
At the time of writing (April, 2022), the monthly inflation rate of FLM is 3.2%. In May, 2022, the monthly inflation rate will drop to 3.1%. Come December, 2022, the monthly inflation rate will drop to 2.55%.
The monthly inflation rate will continue to decrease monthly until January, 2033. It will then drop again January, 2037, and again October, 2039. All 1 Billion FLM tokens will be minted and released by the end of2039. See the table below for a more complete timeline.
Month and Year
FLM Minted Monthly
Monthly Inflation Rate*
Annual Inflation Rate**
* 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.
Note: The FLM Monetary Inflation table was updated on August 15, 2022 to include both monthly and annual FLM inflation rates.
Lockup and Burn
At the time of writing there is no token burn associated with FLM now or in the future. FLM can be locked up when participating in an Initial DEX Offering (IDO). Additionally, some may consider FLM invested in the DTF Flamingo Flund to be "locked up."