Flamingo Finance has announced the upcoming launch of Flamincome’s DAO module and its governance token. The new Ethereum-based token, FLAG, will be distributed to Flamincome users who either provide liquidity to Uniswap pools with collateralized nTokens or participate in governance.
Similarly to the planned Flamingo DAO which will be governed by FLM owners, the Flamincome DAO will allow FLAG holders to make decisions on various topics that are critical to the Flamincome platform. These include issues such as which new assets to support, what yield strategies should be implemented, and any changes to platform fees or tokenomics.
Changes to the platform are submitted in the form of proposals, which are then opened for voting on by token owners. If a proposal passes, the changes are executed, allowing FLAG holders to govern the growth of the Flamincome project.
Unlike the Flamingo DeFi stack, which exists exclusively on the Neo blockchain, Flamincome is a yield boosting protocol on the Ethereum blockchain, similar to Yearn Finance. Users can deposit funds that will be used to earn interest via different staking strategies. The project was launched alongside Flamingo with a unique module created to allow yields to be earned simultaneously on other blockchains.
This “Normalizer” module is used to create nTokens, pegged in value to the original staked assets. Currently these nTokens can be transferred to the Neo blockchain for use in the Flamingo Swap module.
Once the Flamincome DAO module launches, users will be able to use their nWBTC, nWETH, and nUSDT tokens to provide liquidity on Uniswap. The LP token received can then be staked on Flamincome, enabling the user to receive a proportional distribution of FLAG tokens.
Distribution of FLAG via liquidity mining and governance participation will open on 11/06/2020 at 12:00am UTC. 1,048,576 FLAG tokens will be created in the first year, with annual inflation initially set at a rate of 100%.
Half of the tokens will be distributed to users that stake Uniswap LP tokens on Flamincome. The LP token stakes are proportionally incentivized as follows:
- 50% to the nUSDT-UST Uni-LP pool
- 25% to the nWBTC-WBTC Uni-LP pool
- 25% to the nWETH-WETH Uni-LP pool
The remaining 50% of the FLAG supply will be distributed to users that vote in governance proposals on the platform. The first proposal on the DAO platform will be used to decide what percentage of FLAG tokens should be allocated to the Flamincome team for use in governance participation.
This proposal will be issued one month after the liquidity mining start date, with voting options for 0%, 6.25%, 12.5%, 18.75%, and 25%. Once voting has concluded, the team will receive the corresponding amount of FLAG tokens immediately.
The full announcement can be found at the link below: