🪙Tokenomics
Vision for FLY and the Magpie Ecosystem
Our vision for the FLY token and Magpie ecosystem is to create a circular economy where the value generated by the protocol is accrued back to the FLY token stakers. This approach will help drive value for our community and the protocol as a whole.
In this blog post, we will explore the various aspects of FLY: its utilities, tokenomics, community initiatives, and future roadmap. Dive in to discover how FLY is poised to shape the future of Magpie Protocol and learn why being a part of our community will be an exciting and rewarding experience.
Utility
$FLY offers a lot of utility, which makes it a versatile and valuable asset within the Magpie Protocol ecosystem.
Gas discounts: Receive gas discounts that increase based on how much FLY staked and WING token held in wallet.
Staking: Stake FLY to earn a percentage of protocol fees. This feature will be implemented once the Magpie dApp reaches a critical monthly volume.
Chain Abstraction: Enjoy a centralized exchange-like experience which leverages on-chain liquidity, cross-chain messaging, and Magpie’s aggregation system. This system abstracts away the complexity of using multiple different blockchains, making for a cohesive multi-chain DeFi experience. FLY will be one of the primary pieces of this system, on top of facilitating staking, gas discounts, and more.
By offering these utilities with much more planned for the future, FLY enhances the user experience and drives value back to the Magpie Protocol community of stakers.
Staking at Launch
FLY Staking introduces a new level of flexibility and rewards for our users. These features below will go live with the Token Generation Event (TGE), bringing immediate utility to the token.
FLY Dashboard: Manage all aspects of staking from the FLY Dashboard, including claiming your FLY, staking, and monitoring your activities within the Magpie Ecosystem!
No Cap Limit: Enjoy complete flexibility with no minimum or maximum token limits for staking.
Mint WING by Staking FLY: Stake FLY to mint WING, with the amount of WING generated based on the amount of FLY staked and the lock-up duration.
Increased Rewards: Mint more WING by locking your FLY for longer periods, incentivizing longer-term commitments to the ecosystem.
Non-Transferrable WING tokens: WING tokens are non-transferrable and can only be held in your wallet. WING is minted by staking FLY and is burnt when you unstake FLY.
Early Unstake Penalty: If you choose to withdraw or unstake FLY before the lock-up period ends, a penalty will be applied based on the remaining lock-up duration.
Gas Discounts: Receive gas discounts based on the amount of WING held. The discount formula will be detailed in a later blog post, with greater discounts for more FLY staked.
Future Plans for Staking
Building on the foundation of our staking system, we will continue to introduce more features and benefits. We aim to create an adaptive and evolving system, shaped by community feedback, product research, evolution of Magpie Protocol, and consultations with token economics experts. Our future staking plans are a work in progress, and could change as we take in feedback, but our goal remains the same, to maximize incentives, utility, and rewards for our community.
Let’s dive into a short preview on what we’ve got planned for some future updates to staking:
Upon reaching a critical monthly volume, we will introduce this feature to share the revenue generated by the protocol fees with FLY stakers.
FLY stakers will be able to take part in Magpie Protocol governance, helping to shape the future of the protocol.
FLY is going to be a primary piece in our Chain Abstraction update, which will allow users to enjoy a centralized exchange-like experience with on-chain liquidity.
🪙 Tokenomics of $FLY
Our tokenomics model is designed to ensure sustainable growth and fair distribution of FLY, with the community at the forefront of importance to Magpie.
Total Supply at Launch: 100,000,000 $FLY.
Max Supply: 100,000,000 FLY with a possibility of increasing up to a total capped supply of 106,000,000.
Inflation and Deflation Mechanism: There will be no tokens added or removed from the supply.
Over half of the FLY token allocation is dedicated to our community, reflecting our commitment to them and to the long-term success of the project.
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