A New Era for FLOCKS

Flamingo community, welcome to a New Era for FLOCKS.

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In the dynamic world of DeFi, sustainability and long-term value creation are key to building thriving ecosystems. At Flamingo Finance, we’re committed to rewarding our community and enhancing tokenomics in ways that drive real growth. Today, we’re excited to announce a pivotal update to our buyback and burn strategy: the shift from the FLM Buy Back and Burn mechanism within FLOCKS to a dedicated FLOCKS Buy Back and Burn mechanism.

This change is designed to prioritize FLOCKS holders, foster consistent buy pressure, and create deflationary dynamics for FLOCKS without introducing sell-side risks. Let’s dive into the details.

Until now, FLOCKS burning mechanisms have been burning FLM through taxes on trades and through users minting FLOCKS with FLM.

But, starting now, as of Epoch 28, that all changes. Keep reading to find out how.

The Original FLM Mechanism

To understand the evolution, a quick recap: Previously, 25% of all income generated by FLOCKS was allocated to buy back and burn FLM tokens. This helped reduce FLM’s circulating supply over time, supporting its value as Flamingo Finance’s native utility and governance token. FLM powers key protocol functions like staking, lending, and fee discounts, making burns a powerful tool for scarcity and appreciation.

However, as our ecosystem matured — with FLOCKS emerging as a core component for community-driven yields and rewards — we recognized an opportunity to align incentives more directly with FLOCKS holders. FLOCKS represents the flock’s collective strength, and empowering it through targeted tokenomics will amplify participation and long-term holding.

The New FLOCKS Buy Back and Burn: Smarter, Holder-Focused Tokenomics

Effective immediately, that same 25% of FLOCKS income will now be used exclusively to buy back and burn FLOCKS tokens. This shift creates a self-reinforcing loop: protocol revenue fuels FLOCKS scarcity, which in turn boosts yields and utility for holders.

Here’s how it works:

• Gradual Market Purchases: Buybacks won’t happen in large, opportunistic dumps. Instead, they’ll occur over time via limit orders placed around the current market price on OrderBook+. This methodical approach ensures steady accumulation without spiking volatility or favoring high-frequency traders.
• No FLM Burns Below Threshold: As long as the FLOCKS price remains below 1 FLM equivalent, no FLM will be burned. Instead, FLM reserves will be deployed to purchase FLOCKS from the open market. This protects FLM’s value while channeling resources into FLOCKS growth.
• Burns for Deflation: Once acquired, FLOCKS tokens are permanently burned, reducing total supply. This adds consistent buy pressure without any corresponding sell pressure — pure upside for remaining holders.

The goal? Maximize benefits for FLOCKS holders. By buying low and burning steadily, we create predictable upward momentum, encouraging long-term commitment and reducing circulating supply over time.

Why This Matters: Benefits for the Flock

This mechanism is a strategic pivot toward ecosystem resilience:

• Holder-Centric Rewards: FLOCKS holders see direct value accrual through reduced supply and sustained demand. The more FLOCKS we buy and burn, the stronger the token becomes, enhancing staking rewards, liquidity provision, and overall protocol utility.
• Arbitrage-Resistant Design: Limit orders around market prices prevent savvy traders or bots from front-running buys. This levels the playing field, ensuring the flock — not speculators — reaps the rewards.
• Sustainable Buy Pressure: In a market prone to dumps and hype cycles, this introduces reliable, revenue-backed buying. No cliffs, no rugs — just steady progress.
• FLM Protection with Upside: By pausing FLM burns during FLOCKS undervaluation, we preserve FLM’s scarcity while using it as “ammunition” to bootstrap FLOCKS. Once FLOCKS appreciates past the 1 FLM threshold, FLM burns can resume, balancing both tokens.

In essence, we’re turning protocol success into tangible, deflationary gains for FLOCKS, fostering a virtuous cycle of adoption and value.

Due to the timing of testing and setting up this new FLOCKS burning mechanism, and recent volatile market conditions, the Flamingo team has decided to give a major bonus to the FLOCKS Epoch 28 payout. That is why the Epoch 28 payout is more than 4x recent epoch payouts.

Thus far, in Epoch 28, we have bought 326,532 FLOCKS from 224,000 FLM and burned them. Going forward, all FLM that would have been burned will be used to buy FLOCKS off the market and burn them.

At the time of writing, over 115,000 FLM have been burned because of FLOCKS, and $258,983.58 USD in total has been paid out to FLOCKS holders.

Looking Ahead: Building a Stronger Flamingo Ecosystem

This update reflects Flamingo Finance’s dedication to adaptive, community-first governance. We’ve listened to feedback from holders, analyzed market dynamics, and iterated to create mechanisms that withstand volatility while rewarding loyalty.

Let the games begin. Welcome to the New Era for FLOCKS.

Flamingo Finance is a DeFi platform built on the Neo N3 blockchain. Designed with Smart Functions for beginners to advanced cryptocurrency users, Flamingo makes DeFi easy for everyone.

Whether you want to stake in liquidity pools and earn yield, borrow crypto against your collateral, or simply trade from one token to another, Flamingo Finance is the place to be.

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