2.2.9 FLEXDAO

Welcome to FLEXDAO

Stake now: https://coinflex.com/dao
 

The First User-Oriented, Blockchain-Based Mechanism of Rewards, Governance, Voting, and Feedback on a Centralized Exchange

The launch of Bitcoin’s whitepaper in 2008, and its first transactions in 2009 revealed it was possible to develop a decentralized financial system enabling individuals to send funds peer-to-peer without the need of a centralized third party. 

The development of Ethereum and smart contracts was another big step forward for the world of decentralized finance (DeFi), with the development of products such as DEXes (decentralized exchanges) and AMMs (Automated Market Makers). 

Web 3 innovations such as Decentralized Autonomous Organizations (DAOs) are starting to disrupt modes of organization and governance. DAOs allow participants of a group to have greater say in the decision-making process within the organization.

 

What is a DAO?

DAO is an acronym standing for ‘Decentralized Autonomous Organization’.

It is a group or community where the system of rules is a written one, usually involving multiple smart contracts and based on a blockchain – allowing for complete transparency and immutability. 

Smart contracts do not require trust in a third party, as the code is self-executing once certain procedural steps are met. Individuals can vote to decide on changes within the DAO, such as deciding which tokens they want added to a particular platform. This is what makes a DAO decentralized, as it is not a central group of people who make the decisions, but instead the community itself.

The amount of crypto assets you deploy in a DAO and how long you deploy them for determines how much voting power you have. The more assets you deploy to a DAO, and the longer you deploy them. for, the more voting power you’ll have. It also determines the amount of rewards you earn.

 

What is FLEXDAO?

FLEXDAO is the first user-oriented, blockchain-based mechanism of governance, voting, and feedback on a centralized exchange. This aligns token holders’ incentives with the exchange’s long-term success, rather than short-term returns from FLEX Coin speculation. 

FLEXDAO participants will receive 10% of CoinFLEX’s daily revenue and 10% of quarterly profits. 

You only need to stake a minimum of 1 FLEX Coin to join. 

This is a powerful and important precedent for corporations or companies to provide a decentralized voice to their users and community members, and will help those groups make better decisions that puts the interests of their customers first.

 

Staking Period

Holders can choose to stake their FLEX coins for varying lengths of time:

2 Weeks
1 Month (4 weeks)
3 Months (13 weeks)
6 Months (26 weeks)
1 Year (52 weeks)
2 Years (104 weeks)
3 Years (156 weeks)
4 Years (208 week)

 

CoinFLEX returns your FLEX Coin at the end of the staking period. Assuming a user decides to stake FLEX in the FLEXDAO for two weeks, the user will receive a proportional amount of veFLEX along with any rewards throughout that two week lock-up period.

FLEXDAO

The interface provides some pre-set options for the amount of time FLEX Coin will be locked for. 

The unlock period will always be on a Thursday at 08:00 UTC.   

However, irrespective of the time period chosen, the unlocking period is rounded down to the nearest Thursday in order to maintain synchronization between the smart contract’s record of time and our standard record of time, which experiences slight differences. 

Let’s look at some examples from December 2021. 

Example 1:

Staking from 8th Dec (Wednesday) for 2 weeks. This means the staking period should theoretically end on 22nd Dec (Wednesday). However in this scenario, the date rounds down to the nearest Thursday (16th Dec).

FLEXDAO

Example 2.

Staking from 10th Dec (Friday) for 2 weeks. This means the staking period should theoretically end on 24th Dec (Friday). However in this scenario, the date rounds down to the nearest Thursday (23rd Dec). 

FLEXDAO

Example 3. 

Staking from 29th Nov (Monday) for 4 weeks. This means the staking period should theoretically end on 27th Dec (Monday). However in this scenario it rounds down to the nearest Thursday (23rd Dec).

FLEXDAO

This also means that in order to take full advantage of your staking period, it is best to stake your assets as close to Thursday 08:00 UTC as possible.

 

What is veFLEX?

veFLEX is a balance, NOT a token. It is on the blockchain and tied to your address, and therefore cannot be sold or transferred. 

You are, however, able to sell and transfer your FLEX yield, which can be claimed daily. So, while your FLEX Coins are locked, the yield you earn can be withdrawn at any time. You will receive your staked FLEX tokens when the chosen staking period is over.

Staking FLEX Coins is crucial for incentivizing FLEX Coin holders to support CoinFLEX over the long-term. CoinFLEX distributes 10% of profit and 10% of revenue to staked FLEX Coin holders as a reward and on a pro-rata basis. The better CoinFLEX performs, the better the staking rewards.

Your veFLEX rewards are determined by the ratio between the amount of veFLEX staked in your duration block by the total amount of veFLEX staked by all stakers. For example, given that there is a total of 50,000 FLEX as reward in the staking pool, let’s calculate your FLEX rewards assuming you stake 500,000 FLEX for 4 years (208 weeks). 

500,000 (veFLEX staked for 208 weeks) / 1,540,384.62 (total veFLEX staked) = 0.3245942562

0.3245942562 * 50,000 (FLEX to distribute) = 16,229.71281 (Reward)

FLEXDAO

 

How This Benefits FLEX Coin Holders

 

Transparency

If you are an investor or a potential investor in FLEX Coin, you will likely wonder how many FLEX Coin holders are long-term holders and how many are just chasing short-term returns. While long-term holders are more likely to care about the performance of the company, short-term traders are likely to care more about short-term price action. 

With the launch of FLEXDAO on the SmartBCH sidechain, holders have a more nuanced insight into FLEX activity and behavior. For example, suppose 30% of the FLEX supply is being locked for one year, you will know that no matter what happens in the news or the market, at least 30% of the supply will not be sold during that period of time.

 

Voting

Just like other DAOs, CoinFLEX wants to use FLEXDAO to grant some of the decision-making process to those who believe in CoinFLEX’s vision and long-term growth. veFLEX balance holders have a stronger voice in the decision-making process of the company. 

Voting with your dollars on a DAO is also a prime example of free-market capitalism at its’ finest – voting with your dollars. You get to vote on the decision-making process of an organization you are invested in.

While FLEXDAO is not fully decentralized or autonomous, incorporating this type of voting system will shift centralized exchanges to providing greater decentralization and autonomy to their users. Furthermore, as we transition towards a decentralized financial system, we can expect to see more centralized exchanges catch on – or risk losing popularity in the market. 

 

How to Stake Tutorial

To learn how to use FLEXDAO, complete the following steps.

To watch a more in depth video tutorial, please click здесь.

Step 1. Smart BCH Metamask settings for mainnet

—————————————

Step 1a: Get a wallet

You can download a plugin здесь.

Step 1b: In metamask click the Mainnet dropdown menu and click the Add Network button.

FLEXDAO

 

Step 1c: Input the following information:

For Network name type in: SmartBCH

Input the RPC URL:   https://smartbch.greyh.at OR https://smartbch.fountainhead.cash/mainnet

Input the Chain ID: 10000

Input the Currency Symbol: BCH

Finally, Input the Block Explorer URL: https://www.smartscan.cash/

Step 1e. Now click ‘Save‘.

FLEXDAO

Step 2: Import add FLEX token to your account and deposit FLEX.  

2a. Click on the ‘Import tokens’ button at the bottom of the page

2b. Fill in the ‘Token Contract Address’ with the following: 0x98Dd7eC28FB43b3C4c770AE532417015fa939Dd3

The ‘Token Symbol’ should then automatically fill in with ‘FLEX’ and the ‘Token Decimal’ should show the number 18. You will now be able to see and receive FLEX in your MetaMask Wallet using SmartBCH.

2c. If the above is correct click ‘Add Custom Token’ & then ‘Import Tokens’ on the following page.

Before proceeding, ensure that you have a sufficient amount of Bitcoin Cash (BCH) in your MetaMask wallet to pay for gas fees, as BCH is the crypto asset used to pay for gas fees on the SmartBCH network. You can send BCH to your MetaMask in the same way you sent FLEX

 

FLEXDAO

 

Step 3: Send FLEX to your Metamask.

3a. Copy your MetaMask address and go to your CoinFLEX wallet. Click ‘Withdraw’ and select ‘FLEX’ from the list of coins. 

3b. Choose the SEP20 network, and enter your MetaMask address into the ‘Destination FLEX Address’ section.

3c. Enter the amount of FLEX you want to withdraw, click submit and confirm withdrawal.

3d. Enter your 2-Step Verification code to confirm the withdrawal.

 

Step 4. Head to www.coinflex.com/dao and connect your wallet.

4a. Go to www.coinflex.com/dao.

You can either type the link into the URL, or click FLEXDAO in the dashboard, which is in the dropdown menu under ‘FLEX’.

If your metamask doesn’t connect automatically, click on ‘Connect Wallet’ in the top right corner of the page.

4b. Click ‘Approve’ on your MetaMask and you will then be connected.

FLEXDAO

 

Step 5: Choose how much FLEX you want to stake and how long for

You can choose anywhere from 2 weeks to 4 years. 

5a. Enter the amount you want to stake. For first time users you will need to click approve. 

5b. Confirm the transaction on MetaMask, please note that this will require BCH, which you can send to your MetaMask the same way you sent FLEX. 

Make sure you use the SEP20 network.   

You can now stake your FLEX by clicking on the ‘stake’ button.

 

FLEXDAO

 

If your metamask doesn’t connect automatically, click on ‘Connect Wallet’ in the top right corner of the page. Click ‘Approve’ on your MetaMask and you will then be connected.

Step 4b: Select the amount of time you want to stake your FLEX for and press ‘Stake’.

 

FLEXDAO

 

How to claim and unstake:

You can claim your daily FLEX rewards by clicking the ‘Claim’ button, and unstake your FLEX rewards at the end of your staking period. The ‘end time’ is located above the ‘Time’ dropdown menu in the ‘Staking’ box.

Staking for different periods

From a single metamask account linked to FLEXDAO, you would be able to stake your FLEX for a particular time. You can always increase the amount or the duration of staking but it is not possible to stake different amounts of FLEX for multiple durations simultaneously 

For example to be able to stake a 1000 FLEX for 2 weeks and a 10000 FLEX for 1 year. You would have to use two different metamask wallets and follow the staking process.

Burning

Along with the 10% of profit and 10% of revenue distributed to the staked FLEX coin holders, CoinFLEX also burns an amount of FLEX equal to 10% of profit and 10% of revenue by sending it to a burn address further improving the value economics of FLEX coin.

FLEXDAO

 

DAO Payout Times

FLEXDAO operates on the smartBCH chain, which has an average block time between 5-6 seconds. Due to the subtle variations in block times, it’s hard to point out the exact human time/calendar time when the payout is triggered, as blockchains work in block times.

To make it more intuitive, we show the next block number on our DAO homepage which indicates when the DAO payouts will be triggered. You can always use the block explorer to see what the current block number is.

FLEXDAO

 

Contract Addresses

FLEX: 0x98Dd7eC28FB43b3C4c770AE532417015fa939Dd3

veFLEX: 0xA9bB3b5334347F9a56bebb3f590E8dF97fC091f9

Daily payout: 0xB226C60886e81920d3d913858678d8C9e71eC17E with start height: 2153287

FLEXDAO FAQs

Q: Do I use my CoinFLEX account or Metamask to connect to FLEXDAO?
A: Metamask

Q: Which network is FLEXDAO on?
A: SEP20 (smartBCH)

Q: Do I start receiving daily rewards the next day after I stake?
A: Once you stake, there will be a one day delay till the rewards distribution start, i.e. if you stake on Thu, you will start receiving rewards on Sat

Q: What time do the daily rewards be distributed?
A: Usually around 10AM UTC. Rewards timing is based on the block number as the whole DAO works in blockchain time. Please refer to “Next Payment Block” on FLEXDAO page for the accurate time

Q: Can I unstake at any time before the staking period ends?
A: No, the FLEX you staked will be locked for the duration you chose but the daily rewards you get you will be able to claim it immediately

Q: Can I change my staking period once staked?
A: You can extend but not shorten

Q: I want to stake for a month, should I choose to stake “2 weeks” twice or “1 month” to maximize yield?
A: 1 month

Q: I want to do multiple stakings for different periods, do I need multiple addresses?
A: Yes. One Metamask account for one staking period

Q: Do the staked FLEX be counted towards FLEXVIP Level?
A: Yes. Make sure you bind your Metamask address to your CoinFLEX account

Q: Where are the rewards from?
A: 10% of CoinFLEX’s revenue and 10% of CoinFLEX’s profit

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