The decentralized finance protocol behind the Ethereum-based RAI stablecoin is planning to launch a new FLX token for what it has called “ungovernance.”
In mid-February, DeFi protocol Reflexer Labs launched an Ethereum-backed stablecoin with an automated monetary controller that acts to maintain its own stability.
The protocol has now announced a token to further remove human input from the system in what it has described as a “governance removal roadmap.”
The stablecoin has been described as spring-like in that the further the market price of RAI moves from the target price, the more the dynamic interest rate increases which in turn creates a greater incentive to return RAI to equilibrium.
Flex Ungovernance Tokens
The team has acknowledged that in order for RAI to succeed it needs to be fully autonomous with a clear roadmap toward removing most human control from the system. It also needs to have a way to protect the protocol and make it resilient to shocks in addition to ways to pass any remaining governance responsibilities to the community, the blog post added.
In its new roadmap, the Reflexer team has introduced decentralized security incentives through a new “ungovernance” token called FLX.
Similar to how MakerDAO works, the RAI system will have surplus and debt auctions which will mint and auction new FLX tokens in instances of under-collateralization. It added that FLX will also allow the community to make decisions on how to remove themselves from discretion over the protocol.
The announcement stated that one million FLX have been minted at genesis and they will be progressively released from now through approximately August 2023.
35% of the genesis FLX tokens will go to the “GEB Foundation,” which is a member-less company devoted to fostering research, development, and support of the RAI protocol. Out of that, 30 FLX will be given to each address that interacted with the testnet.
21% of the genesis supply will go to early supporters and backers, 20% will go to Reflexer employees, 11.3% to investors, and the rest to DAOs that helped Reflexer bootstrap and Reflexer Labs itself.
The protocol also announced a retroactive rewards program in order to encourage RAI liquidity before the official rewards program starts.
This will involve the distribution of 334 FLX per day out of the foundation supply. This program began on Feb. 17, 2021 when RAI was launched and will last until the start of the official rewards program on July 17, 2021.
At the time of press, RAI was maintaining stability around $3.22 while FLX has yet to launch.
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