Flamingo Finance Has Revised Its FLM Tokenomics Documentation to Align with the Recent Launch of FLOCKS

The update introduces deflationary elements to Flamingo's existing inflationary minting structure, including a new buyback-and-burn initiative

Flamingo Finance has updated its FLM tokenomics documentation to reflect the recent launch of FLOCKS, the platform’s dividend-bearing token, and introduce deflationary elements to the existing inflationary minting structure.

The update includes a new buyback-and-burn initiative, which will begin this month, and the burning of FLM tokens as part of the FLOCKS minting process. Each FLOCKS token minted requires burning one FLM.

Currently, Flamingo users receive newly minted FLM tokens for providing liquidity and holding FLOCKS, which represents a stake in the platform’s revenue-generating activities.

This system maintains an inflationary structure, but the rate of inflation is decelerating over time, Flamingo noted.

At the start of 2023, Flamingo had a total hard cap of 1 billion FLM tokens, expected to be fully minted and in circulation by December 2039. The platform’s minting emissions are 9.44 million FLM per year.

However, with the introduction of FLOCKS and its direct burn mechanism, 109.9 million FLM has already been removed from circulation. This is equivalent to over one year of current minting emissions.

As a result, FLM’s total hard cap has now been reduced to 700 million, and the remaining tokens are expected to be fully minted and in circulation by the end of 2039.

FLOCKS holders receive a share of platform revenue, which is distributed in assets including FLM, bNEO, GAS, FUSD, fWETH, fWBTC, fUSDT, and fBNB.

The formula for calculating the total and circulating supply of FLM will now be: assets minted minus assets burned.

In its early years, FLM experienced high inflation. In October 2020, the annual inflation rate was 100% as the total circulating supply was minted within a single month.

That figure has consistently declined. As of April 15, FLM’s monthly inflation rate is 0.68%. This will fall to 0.32% by January 2026, continuing to decrease monthly until January 2035.

At that point, it will stabilize at 0.46% annually until minting concludes in 2039.