/biz/ - Business & Finance

>>21768204
The economics of FLOW gets a little misconstrued so I'd like to clear it up to the best of my ability. The total starting supply of FLOW was 10 Million. The distribution of FLOW is governed by "Eras". There is a total of 11 Eras. The first Era is called the Genesis Era, which started 7 days ago. There is 60 days in the Genesis Era, in which an inflation rate of 1% is to be added to the total supply of FLOW. At the end of the Genesis Era, there will be about 18,166,967 FLOW in total supply. After the Genesis Era, a new Era will commence. This Era and every Era thereafter will last 365 days. Further, at the end of each Era, the inflation rate will half (1% to 0.5% to 0.025%, etc.). To receive the inflation in any given Era, all you need to do is hold FLOW, there is no staking or locking FLOW up in a contract. Some quick math shows that the total supply at the end of the 11th Era will be about 692,268,914 FLOW.

As far as use case, the DeFi lending market comprises of a large percentage (~85%-90%) of the Total Locked Value (TLV) on Ethereum (MakerDao, Compound, Nuo). What do Collateralized DeFi loans need? Locked in assets (store of value). Coins/Tokens that require staking or other actions to receive inflation prevent said Coin/Token from being used for other applications (lending, collateral, etc). FLOW addresses this by allocating inflation to ALL addresses that hold FLOW without the need to stake or lock FLOW into a contract. This makes FLOW a great collateral asset as one will still be able to receive inflation while their FLOW is locked away for collateral or whatever other purpose one may choose to allocate FLOW to.