Flux Coin Tokenomics

If you don’t wish to read this article then the video below covers everything in this article.

Tokenomic’s Definition

Tokenomics is a broad term which describes all the elements that make a particular cryptocurrency valuable and interesting to investors. This includes everything from a token’s supply and how it’s issued, to things like the utility case or basically what its goal is to achieve in the crypto market. So therefore we will be covering all this information and more.

Flux Coin Overview

I’m going to start with the launch of flux back in 2020, it was actually forked from a previous coin called Zelcash and at the time of the fork there were 123 million coins in circulating supply, this fork introduced a max supply of 440 million coins to be mined or earned. So the current supply as of writing is just over 250 million coins so half of the coins have been mined so far. The algorithm used to mine Flux is a custom proof of work algorithm made by the Flux team called zelhash, the reward for mining one block is 75 Flux but this is split equally between both the miners and the node operators, so when a block is mined 37.5 Flux will go to the miner and the other 37.5 Flux will go to the node operators, there is further splits but we will discuss that later. The block time is 2 minutes and they also have a halving every 2.5 years, this means the first Flux halving will be around January of 2023. Currently it has a market cap of $300 million and sits at around 115th place by market cap on the list of cryptocurrencies. Lastly if you want to buy Flux it is listed on exchanges like Binance, Kucoin, Gate.io and Crypto.com.

Flux Parallel Assets — Ecosystem

Flux coin’s main aim is to connect various different blockchains through their parallel assets which will create a decentralized web of cryptocurrencies. This is one of the biggest features of this coin and is focused on these parallel assets. So a parallel asset is a Flux coin that resides on another blockchain. This allows for the native Flux coin to be swapped to and from any blockchain in their parallel asset list. No matter what asset is swapped, it’s always swapped in a one to one ratio between blockchains. So far they have listed 7 official parallel assets with 3 more to be released. This list includes Kadena, Ethereum, BSC, Tron, Solana, Avalanche and Ergo. So by connecting their coin to these blockchains it allows for swapping of any of these coins between chains, this is really useful if you’re doing de-fi swapping as it can be done without going through a centralized exchange and they also grow the liquidity and lower the slippage when trading.

So how do you go about getting parallel assets, the first option is buying the native Flux token and swapping it to one of these assets. The next option is by holding Flux in their official wallet which is called Zelcore. For every parallel asset that is released they do an airdrop to all Flux holders, when they are launched they distribute 12.3 million of that parallel asset to Flux holders who have Flux coins in their Zelcore wallet. The amount you receive depends on how much Flux you hold, so if you have a large amount of Flux you’ll earn more parallel assets when they are launched.

The next option is to mine Flux coin, when you mine Flux you’ll be earning 10% of every parallel asset on top of the Flux you mined. For example let’s say you mine 100 Flux, you’ll receive 10 more Flux for every parallel asset. So you would earn 10 Kadena, Ethereum, BSC, Tron, Solana, Avalanche and Ergo assets which would bring your total mined coins to 170 Flux. When you’re mining the last three parallel assets that aren’t released will stack up and then when they are released they will be paid out to your wallet. So in theory you earn double rewards for mining Flux.

Now there is one last way to earn parallel assets and this is through running a Flux node. As mentioned below the block reward is split equally between miners and node operators. So the same type of parallel assets are rewarded for those who run a node. There are three types of nodes you can operate but you need to lock up a certain amount of Flux to run a node. This works in a similar fashion to staking but the rewards are much higher. There are currently 3 types of node you can buy, these are the cumulus, nimbus and stratus. They cost different amounts with the cumulus being 1000 Flux, the nimbus being 12,500 Flux and the stratus being 40,000 Flux. The more the node cost the bigger rewards you will earn. As I mentioned earlier the block reward for node operators is 37.5 Flux and this is split between the node operators in a ration of 12:5:3 so when a block is mined the cumulus will get 7.5% of the reward, the nimbus get 12.5% and the stratus get 30%. On top of that they get parallel assets added on. This is one of the best utilizations of nodes in a cryptocurrency because it gives incentives to both miners and node operators. So far around 105 million Flux is locked into nodes which is a good representation of the total circulating supply.

Zelcore Wallet

Now let’s move onto the native zelcore wallet which basically brings the whole flux ecosystem together. This is more than just a crypto wallet as it also has many features that simplify crypto and eliminates the burden of managing wallets and browser extension for each coin and token you hold, it also has a trading platform for de-fi and many other d-apps that can be accessed. I’m just going to touch on the main important features that it offers. Firstly you can manage your mining and node operations through the wallet so you can automatically receive your Flux and parallel assets into this wallet, this eliminates the hassle of having to transfer it around into one place. Next I want to talk about their fusion app, this is the main app for converting between parallel assets, you can trade any assets to any other asset plus trade those assets back into the native Flux token. This means in theory if everyone wanted to convert their tokens into a Flux-Ethereum asset then they could and it would mean all the tokens on the chain would now be Ethereum parallel assets. The fusion app is useful if you want to transfer your holding’s onto an exchange like Binance. For example you can receive Flux from mining, then you swap it in the fusion app to a BSC parallel asset, from here you can send that asset to any BSC address that you want to. This is what really brings the connectivity between Flux and all these other blockchains. In the fusion app is also where you collect the airdrop asset that we mentioned earlier. Another great feature is their de-fi section which allows for swapping of over 1000 pairs of crypto. They have an app called quick swap which will find potential swaps for whichever coins you want. For example swapping of Ethereum to Bitcoin. This allows for anonymity when swapping crypto, but you can also access different exchanges while in the wallet itself. For example you can link your Binance or FTX account which adds further to this web 3.0 that they are creating. There is also NFT integration in this wallet and a secure way to login using a zelID which creates 2 factor authentication on top of the seed phrase for your wallets.

Price Prediction 5Yr — 10Yr

Lastly, I want to go over my price prediction for this coin and the reasoning behind it. Firstly I think this coin is undervalued for the price it is currently at, which is around $1 per coin. Intrinsically I think that the value should be higher at around $2.70. But the reason it’s undervalued is because of the crypto winter which has just happened and many coins follow Bitcoin price and this coin also followed it. If we take a look at the Flux chart we can see it’s had a high of around $3 per coin back in January of this year and has sloped downwards since then. I feel like this coin, for what it offers as a whole should be at a higher price. As it’s undervalued I would say it is a good time to buy it right now because at a certain point all assets do lean towards their intrinsic value. Now moving on I want to give a 5 year prediction and then a 10 year prediction of this coin. Both these predictions are based on many factors that need to happen. In 5 years if the crypto market has another boom I think we can see this coin sitting at around $10-$12 a coin, that is a fair prediction but also relies on Bitcoin going up in the future. Now for the 10 year prediction I would say that this coin has the potential to hit $50 a coin in the next 10 years. Now this depends on the whole Flux team overall as they need to keep innovating like they have been doing for the past years. If they continue to introduce new features and more ways to integrate into the Flux system then I believe we can see some big growth from this coin. So far I’ve been impressed with what the team has done with this coin and I don’t feel like they are the ones to steer off this path that they are on. Many coins don’t have an honest team behind them and many of these coins have failed. If we look at Luna as an extreme example we can see how the management wasn’t the best with that coin and what led to its downfall. The management on flux is great and I can see them being very successful in the future.

So there is a lot more to flux that I could talk about but this tokenomics series is more about the main features of these coins which I want to showcase and hopefully get people interested in different coins and allow them to get an understanding before investing into these coins.