XFL is coming soon to a blockchain near you

Creating cross-chain liquidity for Flame Token

We just had a busy October: We moved 250M XFL to the Harmony One Blockchain and opened a liquidity pool for SushiSwap on Harmony. We also brought the liquidity pool for Unsiwap on Ethereum Mainnet back.

We also began with the development of our staking contracts for the ILO/LP Program that will start in December 2021. While we were doing that, we also reworked our token distribution model (for the better), and have now a model where, with the start of December 2021, more than 80% of all XFL tokens are locked in smart contracts.

And, last but not least, we have been working on Sharesome, as usual. So, let’s bring you, people, up to date.

The countdown for the Flame Token Initial Liquidity Offering

We all know the second time is the charm. This is now our second run to kick off the sale of 1.68B XFL. The first time was in July 2021 with the plan to immediately launch an LP program that would incentivize liquidity providers for the USDC/XFL pair on Uniswap. But because we launched on Unsiwap v3, we never managed to deploy the necessary technical infrastructure for the LP staking program (smart contracts, frontend, etc.). It was simply too early to develop anything like that for v3. So we paused, removed the liquidity, pivoted, and now we are back with the final plan.

On December 1st, we will launch the initial token sale on SushiSwap with the liquidity provided of 5M tokens and ~2000 USD equivalence in USDC within the liquidity pool, which works out to a token price of 0.0004 USD per token. As the pool is depleted, we will continue to fund the pool with more XFL tokens and stabilize the token price, as per the bonding curve below (based on the number of released tokens):

If all 1.68B XFL tokens are funded to the pool, following the above curve, this would be the equivalent of raising 1M USD. The funds would be distributed as follows (assuming all tokens sold):

  • 30% for covering operational expenses in creating the pool, funding it, and marketing expenses for the ILO
  • 70% posted back to the pool as liquidity by us

Yield Farming and LP Incentivization

One of the main goals of our project is to have an as fair as possible token distribution model. This is done via our upcoming three-phased liquidity mining & hodl program. We will be releasing three sequential staking contracts with distinct specifications for the XFL token distribution:

  • Yield Farming
  • Liquidity Provider Subsidy Program
  • HODL Pool

Below we will explain what we want to achieve, and how we want to achieve it, so you understand the parameters of each contract and the differences between all of them.

Yield Farming

The first mechanism, starting December 1st, that we implement to distribute XFL tokens to the community will be the Yield Farming staking contract. This contract will hold 6% of the total XFL supply of 21B tokens. This smart contract will distribute XFL to community members who stake USDC, LINK, MATIC, FTM, AAVE, or SUSHI.

We want to make sure that we distribute XFL tokens to the community members who believe in the long-term vision behind Flame by showing that they would put real money into the Yield Farming Pool and lock it for a while. There is an opportunity cost that your money would have been better placed somewhere else. So, there are already risks involved, be aware of that.

You can call that ‘Proof of Risked Capital’.

We believe that this is the best way to continue with the distribution of XFL for two reasons:

  1. We need liquidity in our economic model for it to work properly. And for that, we need people who are able to put the necessary capital into the liquidity pools.
  2. We want the token distribution model to be as fair as possible. And we think it is fair that if a person puts for example 10,000 USDC in our Yield Farming Pool, this 10,000 USDC are weighted no differently as other persons 10,000,000 USDC because ten million USDC consists of 1000 different 10,000 USDC chunks which will get an equal amount of XFL as the 10,000 USDC from the first person. The same goes for LINK, MATIC, FTM, AAVE, or SUSHI.

We always want to tell you guys about the risks involved when dealing with XFL tokens. Nothing in crypto is ever completely safe. But also, nothing in traditional finance is completely safe.

In the case of our staking pools, you deal with smart contracts, issued on a blockchain. Hacks can happen when someone finds a vulnerability in a smart contract, sometimes even by the creators of the smart contract, extracting all funds to an anonymous wallet that are then sent somewhere else to be sold.

The Yield Farming Pool will run for 25 epochs, each epoch will last 1 week. 50.4M XFL tokens will be distributed in each epoch. If you participate in the Yield Farming Pool, you will be able to harvest your yield at the end of each epoch. Your harvest will be based on the number of assets that you have staked relative to the total number staked in the pool. The calculation will be time-weighted to promote true and fair pro-rata harvesting. Everybody can add to the pool during the duration of an epoch and receive rewards proportional to the time your assets are staked, but the funds must stay staked through the end of the epoch to be able to harvest the rewards.

Specs for the Yield Farming Pool

Liquidity Provider Subsidy Program

After the first week (1 epoch) of the Yield Farming Pool, on December 8th, we will offer the ability to harvest your spoils and migrate to new fertile soil in part 2: The Liquidity Provider Subsidy Program. The concept behind the Liquidity Provider Subsidy Program is to reward long-term liquidity providers with progressively more XFL tokens as they continue to signal their belief in the Flame vision.

[Click here for more info about the LP Program]

We will use the SushiSwap USDC/XFL LP token as a means to reward liquidity pool providers with a massive incentive to bootstrap token liquidity. The program will run for 100 epochs and each epoch will last 1 week. At the end of the epoch, the user can harvest their XFL. This initiative will be granted 4,200,000,000 XFL and each epoch will have 42,000,000 XFL to start.

Specs for the Liquidity Provider Subsidy Program Pool

To participate in this pool, you should be also aware of the risk you are taking. As there are two different assets involved in the liquidity pool (USDC and XFL), the assets in the pool can fluctuate in value causing loss greater than the value being farmed from the pool. This is called impermanent loss.

[Click here to better understand what impermanent loss is]

With Pool 1 and Pool 2 we created two opportunities:

  1. Stake capital and farm XFL
  2. Stake USDC and XFL in the SushiSwap Mainnet liquidity pool and farm XFL

Now, we understand that for option 1. you need massive amounts of capital, and option 2. might be too risky for a crypto starter. So, we will create another opportunity with Pool 3: The XFL HODL Pool.

In our 3rd pool, stake XFL for XFL

On December, 8th, we will allow users to use XFL to farm more XFL.

We want to give early adaptors and long-term believers a mechanism where they are rewarded for hodling XFL, signaling their belief in the Flame vision. Pool 3 is also designed for “the little farmers”, and the “causal buyers”.

Here is how it will work:

Specs for the XFL HODL Pool

Sustainable token allocation

In order to bootstrap the early days of the system and ensure that there is plenty of XFL liquidity, we already dedicated 20% of the total XFL supply to rewards for liquidity providers for the USDC/XFL pair on SushiSwap that will be locked in a smart contract. And we will lock another 6% of the total supply in the Yield Farming Pool, and another 4% in the XFL HODL Pool.

From the 21B XFL tokens that will ever exist, only 50% were minted on December 14th, 2018. The other 50% are held by a smart contract that is vesting 87,500,000 XFL per month, but only if we call the contract and request a payout. This is designed as a 10 year vesting period.

So far, we requested 2 payouts:

  • On March 4th, 2021 we received 2,362,500,000 XFL (which is 27 month x 87,500,000 XFL).
  • On July 14th, 2021 we received 350,000,000 XFK (which is 4 month x 87,500,000 XFL).

Check on: https://etherscan.io/token/0x469861bdfd02e7ebce7cdeb281e8eec53069cf5f?a=0x518d8b6180786d3600f40d36fa4eb0b40d80d511

If we would call the contract today, we would receive another 262,500,000 XFL (which is 3 months x 87,500,000 XFL).

That means, that today we have 13,475,000,000 XFL “in circulation”.

14. December 2018 10,500,000,000 XFL
2019 + 1,050,000,000 (12 month)
2020 + 1,050,000,000 (12 month)
2021 + 875,000,000 (10 month)
= 13,475,000,000 XFL

The percentage of XFL allocated to founders and team is 12%, the tokens allocated for early investors & advisors is 9%.

From the 2,520,000,000 XFL tokens (12%) for founders and team, 559,999,996 XFL are already vested and out in the wild, based on 12-month vesting since June 2021. We will now move the remaining 1,855,000,004 XFL (8.83%) that are already awarded into a smart vesting contract that will start vesting again for 1 year with 12 x 1/12 payouts. The remaining 105,000,000 XFL will stay in the liquid treasury waiting to be used for incentivizing new team members.

From the 1,890,000,000 XF tokens (9%) for early investors & advisors, 393,750,000 XFL are already vested and out in the wild, based on 12-month vesting since June 2021. We will now move the remaining 1,496,250,000 XFL (7.13%) that are already awarded into a smart vesting contract that will start vesting again for 1 year with 12 x 1/12 payouts. 91,601,500 XFL (0.44%) have been sold in a private sale. 20,000,000 XFL (0.00%) have been send to advisors.

Just as a side note: None of the founders & team members, and none of the investors touched their tokens so far. Everyone believes in the Flame vision and hodls. That is why everyone agrees to move the remaining tokens into a smart contract and re-start a 12 month vesting period.

Sustainable token allocation

The token allocation in December 2021 will look like this:

Maximum token supply: 21,000,000,000 XFL
Vested to the Flame company wallet: 13,650,000,000 XFL
Locked in smart vesting: 7,350,000,000 XFL, will vest over the next 7 years

From the unlocked 13,650,000,000 XFL, the following number of tokens are going to be moved and locked in smart contracts:

Founders and team: 1,855,000,004 XFL (8.83%), will vest over 12 month
Early investors & advisors: 1,496,250,000 XFL (7.13%), will vest over 12 month
Yield Farming Pool: 1,260,000,000 (6%), will be distributed over 25 weeks
Liquidity Provider Subsidy Program Pool: 4,200,000,000 (20%), will be distributed over 100 weeks
HODL Pool: 840,000,000 XFL (4%), will be distributed over 50 weeks

We allocated 250,000,000 XFL (1.19%) to be sold via SushiSwap on Harmony, and 1,680,000,000 XFL (8%) to be sold via SushiSwap on Mainnet.

167,719,353 XFL (0.8%) have already been sent to the Uniswap v3 liquidity pool on mainnet. 2,420,000 XFL (0.0%) have been distributed to an early airdrop.

Only 833,259,147 XFL (3.97%) will remain unlocked in the treasury as a reserve for future investments.

In total, the token allocation is:

Max token supply: 21,000,000,000 XFL (100%)

Locked:
Smart Vesting Contract: 7,350,000,000 XFL (35%), will vest over the next 7 years
Founders and team: 1,855,000,004 XFL (8.83%), will vest over 12 month
Early investors & advisors: 1,496,250,000 XFL (7.13%), will vest over 12 month
Yield Farming Pool: 1,260,000,000 (6%), will be distributed over 25 weeks
Liquidity Provider Subsidy Program Pool: 4,200,000,000 (20%), will be distributed over 100 weeks
HODL Pool: 840,000,000 XFL (4%), will be distributed over 50 weeks
Liquidity Pools: 167,719,353 XFL (0.8%), locked in LP
= 81.76% of the total supply will be locked

Unlocked:
Treasury: 833,259,147 XFL (3.97%), already vested
Founders and Team: 559,999,996 XFL (2.67%), already vested
Early investors & advisors: 505,351,500 XFL (2.41%), already vested
Airdrop: 2,420,000 XFL (0.00%), already distributed
SushiSwap Harmony Sale: 250,000,000 XFL (1.19%), to be sold
SushiSwap Mainnet Sale: 1,680,000,000 XFL (8%), to be sold
= 18.24 % of the total supply is unlocked

With this token distribution and lockup model, we want to provide the best possible structure for Flame.

Sharesome v21

And finally, there is Sharesome. Without a platform that uses Flame as the native medium-for-exchange token, there would be no value in Flames.

Flame Token has to be exchanged into Flame Credits for use on Sharesome. Flame Credits are used as a value transfer mechanism on the platform. Right now, Flame Credits are used for tips and other digital services. Advertising on Sharesome is only paid with Flame Credits.

We successfully launched Sharesome v21 which was basically a huge bugfix for hundreds of small bugs that pilled up. The most visible changes are that we now remember a user’s last scroll position on the saved-, likes-, and wallet page. And the topic moderation log is now available on mobile.

If you are interested in what we are currently working on, just follow our roadmap.

Monthly active users grew from October 2020 to October 2021 more than 25% to 1,544,042 MAUs. Pageviews grew by more than 27% to 22,256,807 page views per month.

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