Chainflip
ChainflipFLIP
FLIP
Chainflip Price Converter
Chainflip Information
Chainflip Supported Platforms
| FLIP | ERC20 | ETH | 0x826180541412D574cf1336d22c0C0a287822678A | 2023-10-04 |
About Chainflip
Chainflip (FLIP) is a decentralized exchange platform that enables swapping of assets across different blockchains without the need for wrapped assets or facing liquidity fragmentation. Founded by Simon Harman (CEO), along with Martin Rieke (CTO) and Alicia Hatt (CFO). The platform's native token, $FLIP, an ERC-20 token is used as collateral for validator auctions, where validators stake $FLIP to participate in maintaining the platform's state chain and control liquidity vaults. These validators earn rewards, contributing to the security of Chainflip. Additionally, the DEX converts network fees into $FLIP and burns them, effectively managing the token's supply and increasing its value for holders. Chainflip has an elastic supply of $FLIP tokens, similar to Ethereum’s model post-EIP-1559, starting with 90 million tokens but varying over time based on demand. This dynamic supply is managed through a token-burning mechanism driven by swap fees, aiming to reward holders and validators.
$FLIP, the ERC-20 protocol token of Chainflip, plays several crucial roles in the platform:
Collateral for Validator Auctions: Validators, who maintain the state chain and control the liquidity vaults of Chainflip, require $FLIP as collateral. They earn rewards from block rewards, contributing to the network's security and efficiency.
Network Fee Conversion and Burning: The Chainflip DEX automatically converts network fees collected in USD into $FLIP and then burns them within the protocol. This mechanism benefits $FLIP holders, as it reduces the token supply, potentially increasing its value.
Liquidity Provision and Relaying Services: For processing instructions on the decentralized exchange, $FLIP is necessary for liquidity provision and relaying services.
Token Supply Management: Chainflip features an elastic supply of $FLIP tokens, with minting and burning mechanisms similar to Ethereum’s post-EIP-1559 model. The network genesis begins with 90 million $FLIP tokens, but this number changes over time based on demand. The burning mechanism, primarily fueled by swap fees, aims to reward holders and validators while managing the token supply effectively.
In essence, $FLIP is integral to the Chainflip ecosystem, serving as a key utility token that underpins the platform’s decentralized exchange functions, validators' operations, and the overall economic model of the protocol.