Earlier I already wrote about the Flux Protocol and mentioned the possibility of DAO, in this article I will supplement the information and also talk about staking
What is Flux Protocol?
However, before starting, let me remind you that Flux Protocol is not just another DeFi project, but an extremely powerful and multifunctional blockchain oracle that works simultaneously in several networks. More precisely, it will work. Indeed, at the moment Flux Protocol is still under development and so far only functions in testnet mode.
FLX Token
Actually, therefore, FLX tokens are not traded anywhere at the moment and you cannot even buy them on a sale - the team has already held a successful round of funding among private investors, during which they raised $ 10 million in funding, so FLX sales are not planned in the near future.
And if now the Flux Protocol is working in test mode without using FLX, then after the official release these tokens will play a very important role in the project.
Flux Protocol security through staking
FLX tokens will be used to ensure the security of the protocol and will serve as a guarantee that the data transmitted by the Flux Protocol oracle is reliable. This will be achieved through the staking mechanism. But for the Flux Protocol it will be implemented in an unusual way.
First, the FLX stack size required to become a validator will be dynamic. Flux DAO will regularly balance the stake size so that the TVS value - that is, the total stake of all validators, is approximately 1/5 of the capitalization of all FLX tokens.
This is done so that the loss of a potential fraudster who decides to transfer incorrect data through the Flux Protocol oracle is greater than his possible profit.
Data rechecking system
However, the creators of the Flux Protocol understand that there are people who, despite the possible losses, will want to attack the Flux Protocol. Therefore, another protection mechanism for them will be timelocks and a challenge mechanism. For each request for data, clients of the oracle Flux Protocol can configure a time interval to check the result received by the oracle. And at the same time, validators will track all data requests in a fully automatic mode, carrying out additional verification of the reliability of this data. If in the course of such a recheck unreliable information is found, then it can be challenged by another validator. To do this, he will have to put his token on the result that he thinks is correct according to the API data from his own response. And if it turns out that the disputed data was fraudulent, then the attacker will be fined, and the vigilant and honest validator, on the contrary, will receive an additional reward.
Flux DAO and "simple" FLX staking
And all this is not counting the fact that FLX tokens will be required for voting by members of the Flux DAO, which will determine the size of the stake and commission on the network, as well as whitelist the addresses of smart contracts of Flux Protocol clients who are allowed access to data requests from oracles. ...
And I understand that all these technical details sound rather complicated. However, don't be intimidated. After all, after its release, the Flux Protocol will work according to a model reminiscent of the Delegated Proof of Stake - that is, users can simply delegate their FLX tokens to a full-fledged validator and receive part of its rewards for this in full liability, while not independently doing the work of checking and processing data.
But all this will be available only in the future, after the full release of the Flux Protocol and the launch of its FLX tokens, which so far cannot be bought anywhere. And in order not to miss the moment of the launch of the Flux Protocol - subscribe to my blog, because I will try to always promptly cover the news of this project.
Useful links:
Twitter: https://twitter.com/fluxprotocol
Site: https://www.fluxprotocol.org/
Discord: https://discord.com/invite/sJUveAvJHf
Telegram: https://t.me/fluxprotocol