Staking is the most requested feature by the Floki community. Yet, it is also the one that has taken us the longest time to implement because we strongly believe that we need to be very intent about any staking program we release, with a focus on long-term sustainability.
As such, we believe that the following considerations must go into any Floki staking program:
- It cannot make the FLOKI token inflationary and should not introduce more FLOKI tokens into circulation.
- It should be designed to add value to Floki holders and the crypto space ultimately.
In light of the above considerations, we think the best way to approach a strong staking solution for FLOKI is by introducing a reward token — and the main way to earn this token is by staking FLOKI.
Now pay careful attention:
We’ve carefully contemplated and debated the decision to put this proposal forward for over a year now, and — as applies to every critical decision that affects the future of Floki — the ultimate decision lies in the hands of the Floki DAO.
The reward token being proposed will have the following features:
- The main way to earn this new token will be by staking your FLOKI tokens. There won’t be a presale or any kind of fundraising. The token will launch with a small pool on Uniswap and PancakeSwap, but most of the supply can only be earned by staking FLOKI.
- Since there needs to be a liquidity pool for people to trade the reward token, a portion of the token supply will be used to create a pool on the two top DEXs on Floki’s main chains: Uniswap and PancakeSwap.
- The reward token will be a utility token: We do not believe in simply launching things for the sake of it. As such, this reward token will be a strong utility token.
- Users will be able to earn the reward token by locking up their FLOKI tokens for 3 months — 4 years. We envision this resulting in a significant portion of FLOKI tokens being locked up for an extended period of time, which will significantly reduce the amount of FLOKI tokens in circulation and add significant value to the FLOKI token.
Before this DAO vote, we have done our leg work to ensure that this new token is in the best position to succeed:
- We’ve locked down a concept that keys into an industry with trillion-dollar potential that we believe we can adequately capitalize on. In other words, there will be long-term sustainability. To efficiently capitalize on this industry, we believe whatever solution we introduce needs to be its own brand, which Floki and the Floki DAO will then own.
- In addition, heavy development is already underway: we’ve hired several new developers (and would hire more!) to ensure that Floki development activities aren’t affected, and the tokenomics is designed to ensure long-term development sustainability for this project.
- We’ve formed key strategic partnerships (with both institutions and other projects!) to ensure the success of this token:
- We’ve locked down an official partnership with DWF Labs as our main market maker and institutional partner for this new token. DWF Labs is one of the most respected institutional players in crypto.
- We will be announcing other institutional partners in due time.
- Several CEXs have committed to listing the new token based on agreed-upon timelines post-launch.
How does this affect the FLOKI token?
We want to be very clear that we would not propose introducing a new token to the Floki Ecosystem if we haven’t carefully contemplated the decision over a long period of time: this is something we have deliberated for over a year now, and we’re only putting forward this proposal because we believe it to be in the best interest of FLOKI holders because 1) it is the ONLY way to ensure a sustainable staking program that does not devalue the FLOKI token due to inflation 2) we believe that we can ensure long term sustainability of the new token/platform.
We’ve had several opportunities to launch a new token in over two years of Floki’s existence and have refused to because we saw no need to. We’ve also watched dozens of projects falsely claim association with Floki because they knew it would make their tokens successful, yet we did not launch another token because there was no point. With the Floki staking program launching now, however, this is the perfect time to have a second ecosystem token in the interests of FLOKI holders.
A primary concern we’ve seen when the idea of an established crypto brand launching a new token is floated is the possibility of liquidity fragmentation between the old token and the new one. This is a valid concern if the new token is launched as a cash grab without offering inherent benefits to holders of the old token.
This is not the case here for the following reasons:
- The MAIN way to earn the new token is by locking up FLOKI tokens. More than half of the supply will be distributed this way. So, people are much more likely to buy FLOKI tokens and stake them to get the new token, which is positive for the FLOKI token. This should enhance the liquidity of the FLOKI token and not fragment it since a lot of FLOKI tokens will be taken out of circulation due to the new token.
- This ensures that FLOKI holders control the distribution of the token and benefit from its success. It also effectively takes FLOKI tokens out of circulation through staking for as long as tokens are staked; this makes the FLOKI circulating supply hyper-deflationary in the short/mid-term (since most people have to stake for a period of 3 months — 4 years).
- The new token is keying into a trillion-dollar industry and a trend with strong demand to ensure actual utility for the new token, which should ensure its stability and ensure a positive flywheel effect for FLOKI since strong utility demand will keep the Floki staking APY sustainable enough to result in more people buying FLOKI tokens to stake it to earn the new token.
- In other words, the primary target audience for the new tokens isn’t existing FLOKI holders but new users interested in the token for its utility. It’s also worth noting that FLOKI holders could earn the new token without having to buy it anyway; they just need to stake their tokens!
- Long-term FLOKI holders will be rewarded: they can lock up their FLOKI tokens for months/years and simply earn a reward without worrying about their FLOKI tokens being devalued due to staking-related inflation.
- In addition, the Floki staking program uses a lock-up mechanism that allows people to select a lock period ranging from 3 months to 4 years. While traditional staking mechanisms like this make it entirely impossible to unstake before the end of this period, the Floki staking program has a convenience option that allows people to unstake before the end of their selected duration by paying a penalty fee of 5–20% of the number of tokens they staked (depending on how long they staked for), which is then sent to a burn address. This is an optional feature. FLOKI becomes deflationary should some users decide to use this, however. So you can say that the FLOKI staking program ensures further deflation of the FLOKI token.
There will be a total supply of 10 billion tokens to be allocated in the following way:
- 56% will go into Floki staking pools and can be earned by staking FLOKI tokens. (2% of this will be allocated to Floki NFT holders and Diamond Hands holders as communicated during the February 2023 bridge burn and tax reduction DAO vote).
- 10% of the supply will go towards setting up a liquidity pool for the token on the ETH and BNB chains.
- 22% will go to the Floki treasury for development activity and operations for the new token and Floki. (20% of this will be used for development and marketing/growth while 2% will be allocated as team incentives — the team incentives allocation will be vested for four years).
- 5% will go towards an incentive program to boost the adoption of the new protocol.
- 7% will be used to set up a staking pool for holders of the new token to ensure its long-term stability.
If this proposal passes:
- More details about the reward token will be communicated shortly after.
- The Floki staking program will go live on the 27th of October, 2023.
- Users can stake FLOKI and earn the reward token: 56% of the supply will be earned over a 4-year period — which will be the main way to earn the token. 10% will be added to the Liquidity Pool. 22% will be allocated to the treasury for operations/dev/marketing/etc. 5% will be allocated towards user incentives to accelerate the adoption of the platform being built.
- The successful execution of this proposal will mean the immediate execution of three key objectives from our roadmap on the 27th of October, 2023. Namely: Staking, Project TL (which is the platform the token is built around), and Mystery Project (which is the reward token).
PLEASE NOTE: The introduction of this proposal does not mean we automatically launch a reward/sister token. While we strongly believe that this is in the best interests of Floki, we will ONLY go ahead and launch the token if the DAO is in favor, and the main way to earn this new token will be by staking your FLOKI token. As such, it complements the FLOKI token and adds value to it.
DISCLAIMER: Please be VERY CAREFUL and note that we would NEVER DM you first about ANY token. So, if anyone DMs you asking you to buy a token purportedly from us, please report them as the scammers they are!
Also, pay careful attention as there are scammers on the prowl who have been using the Floki brand to launch tokens and falsely claim association with us for years. We expect that this will further intensify with the introduction of this proposal. Update your Telegram settings to prevent non-contacts from adding you to groups, and be wary of clicking links on social media.
If the DAO votes in favor of this proposal, we will be making announcements ONLY on our official channels: