- Leading yield platform CoinFLEX is the first centralized exchange to launch a DAO
- CoinFLEX will distribute 10% of daily revenue and 10% of quarterly profits to FLEXDAO stakers
- CoinFLEX aims to grow the platform collectively through community feedback by decentralizing various parts of their decision-making process
CoinFLEX, a leading crypto exchange and yield platform, has become the first centralized exchange to launch a Decentralized Autonomous Organization (DAO), called FLEXDAO, allowing users to receive daily and quarterly rewards from CoinFLEX. FLEXDAO is built on SmartBCH, the sidechain for the Bitcoin Cash blockchain.
CoinFLEX uses a deflationary mechanism to buy and burn 10% of their daily revenue and 10% of quarterly profits, according to their whitepaper. CoinFLEX will be distributing these rewards to FLEX Coin stakers. This encourages the long-term success of FLEX Coin, CoinFLEX’s exchange token, by preventing locked tokens from being sold during volatile market activity.
Users are only required to stake a minimum of 1 FLEX Coin to participate in the FLEXDAO. There are multiple staking periods to choose from, ranging from 2 weeks to 4 years.
This information benefits the existing members of the FLEX Coin ecosystem and potential investors. Specifically, it will provide insight into the number of long-term FLEX Coin holders who have staked FLEX Coin compared to short-term FLEX Coin speculators.
The launch of FLEXDAO will provide immediate information to FLEX Coin holders, namely a nuanced insight into the activity and behavior of the native platform token.
For example, suppose an investor sees that 30% of the total FLEX supply is being locked for one year. In that case, the FLEX Coin price is theoretically less prone to market volatility as at least 30% of the FLEX Coin supply cannot be sold during that period.
FLEXDAO will also be a more transparent communication channel for the CoinFLEX community, whose members will have governance and voting capabilities to voice opinions on many of the decisions affecting the CoinFLEX ecosystem.
As the first CEX to launch a DAO, CoinFLEX sets a powerful and bold precedent for companies to put their customers' interests first by decentralizing the platform's decision-making process.
CoinFLEX has a vision to build collectively with their community members and believes community feedback will be critical to their growth and success.
In the long run, their goal is to take discussions around product management to the public and actively engage the community in developing the company’s plans.
For more details about FLEXDAO, you can visit: https://coinflex.com/dao
Founded in 2019, CoinFLEX is the Home of Crypto Yield and is committed to providing passive investors and active traders an easily accessible platform to earn and trade crypto.
CoinFLEX creates innovative solutions to bring investors and crypto markets together through intuitive yield products such as flexUSD, the world’s first interest-earning stablecoin, and AMM+, the most-capital efficient automated market maker in the world. CoinFLEX is backed by crypto heavyweights, including Roger Ver, Mike Komaransky, Polychain Capital, and Dragonfly Capital.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.