{"id":"flow-token","title":"FLOW Token","content":"**FLOW Token** is the native [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) on the [Flow](https://iq.wiki/wiki/flow) [blockchain](https://iq.wiki/wiki/blockchain), a decentralized [layer 1](https://iq.wiki/wiki/layer-1) [blockchain](https://iq.wiki/wiki/blockchain) created by [Dapper Labs](https://iq.wiki/wiki/dapper-labs), the company behind [CryptoKitties](https://iq.wiki/wiki/cryptokitties). FLOW is used for payments within [decentralized applications (dApps)](https://iq.wiki/wiki/decentralized-application) that are constructed on the network. Additionally, it facilitates the development, deployment, and creation of [smart contracts,](https://iq.wiki/wiki/smart-contract) which are essential for building applications on [Flow](https://iq.wiki/wiki/flow). [\\[1\\]](#cite-id-1sagh6oy8yq)\n\n## Overview\n\nFLOW is the native token of the [Flow](https://iq.wiki/wiki/flow) [blockchain](https://iq.wiki/wiki/blockchain), used to support the network’s core operations, including [transaction fees](https://iq.wiki/wiki/transaction-fee), [staking](https://iq.wiki/wiki/staking), rewards, and data storage. It serves as the [staking](https://iq.wiki/wiki/staking) asset under [Flow’s](https://iq.wiki/wiki/flow) [proof-of-stake](https://iq.wiki/wiki/proof-of-stake) consensus model, enabling [validator](https://iq.wiki/wiki/validator) participation and delegation. FLOW also functions as a medium of exchange within applications, collateral for secondary tokens, and a reserve asset for on-chain activity. Additionally, it is intended for governance, although full on-chain governance is not yet active. [\\[2\\]](#cite-id-321v91y8535)\n\n$$widget0 [YOUTUBE@VID](iBzrf7bwABE)$$\n\n# Utility\n\nThe FLOW token functions as the core [utility asset](https://iq.wiki/wiki/utility-token) on the [Flow](https://iq.wiki/wiki/flow) [blockchain](https://iq.wiki/wiki/blockchain), supporting multiple critical activities across the network. It is used for [staking](https://iq.wiki/wiki/staking) by both [validators](https://iq.wiki/wiki/validator) and delegators, and serves as the medium for distributing [staking](https://iq.wiki/wiki/staking) and protocol rewards. FLOW is also the primary currency for paying [transaction fees](https://iq.wiki/wiki/transaction-fee) associated with [smart contract](https://iq.wiki/wiki/smart-contract) deployment, account creation, and asset transfers. Additionally, users must hold a minimum balance of FLOW to reserve on-chain storage.\n\nFLOW also serves as a medium of exchange within [decentralized applications](https://iq.wiki/wiki/decentralized-application), acts as [collateral](https://iq.wiki/wiki/collateral) on [DeFi](https://iq.wiki/wiki/defi) platforms, and is utilized for governance participation. It facilitates peer-to-peer payments and supports token creation, making it essential for developers building apps, games, and [smart contracts](https://iq.wiki/wiki/smart-contract) on [Flow](https://iq.wiki/wiki/flow). As a bridging asset, FLOW enables liquidity between less frequently traded token pairs. Its broad utility ensures that all network participants—whether developers, users, or [validators](https://iq.wiki/wiki/validator)—interact with FLOW across a wide range of network functions. [\\[2\\]](#cite-id-321v91y8535)\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=TKqPxb5JUF8)$$\n\n# Tokenomics\n\nFLOW has a total supply of 1.25B tokens and has the following allocation: [\\[6\\]](#cite-id-3l2h5kf2ynd)\n\n* **Ecosystem Fund**: 32%\n* **Pre-launch Backers & Community Sale**: 30%\n* **Dapper Labs**: 20%\n* **Development Team**: 18%\n\n![image](https://ipfs.everipedia.org/ipfs/QmWGocLX6KBUGBn2qitjHUkCKHzmEWcWB2bB4Aux7NPnSH)\n\n# Staking\n\n[Staking](https://iq.wiki/wiki/staking) on the [Flow](https://iq.wiki/wiki/flow) [blockchain](https://iq.wiki/wiki/blockchain) requires [validator](https://iq.wiki/wiki/validator) [nodes](https://iq.wiki/wiki/node) to lock FLOW tokens as a security deposit to participate in network operations. This bonded deposit can be slashed if a [validator](https://iq.wiki/wiki/validator) engages in malicious behavior, serving as a deterrent against attacks such as [Sybil attacks](https://iq.wiki/wiki/sybil-attack), where one party tries to control the network by posing as multiple [validators](https://iq.wiki/wiki/validator). This mechanism is essential for maintaining the integrity and decentralization of the protocol.\n\n[Flow](https://iq.wiki/wiki/flow) distributes validator rewards through a combination of inflation and [transaction fees](https://iq.wiki/wiki/transaction-fee). Rewards were introduced in December 2020 and are allocated entirely to stakers, preventing token dilution for those actively participating. The protocol uses role-based reward coefficients to balance the network’s needs—if certain [node](https://iq.wiki/wiki/node) types are underrepresented, their reward rate increases until the appropriate stake distribution is achieved. [Validators](https://iq.wiki/wiki/validator) must follow operational guidelines to receive full rewards, with penalties in place for non-compliance. [\\[6\\]](#cite-id-3l2h5kf2ynd)\n\n# Governance\n\n[Flow](https://iq.wiki/wiki/flow) governance combines off-chain and on-chain mechanisms, with a gradual shift toward full decentralization. Initially, development is led by core contributors, and node operators review proposed upgrades. Community members can submit improvement proposals via GitHub. While early on-chain voting initially began as non-binding signaling, it enables FLOW holders to express their opinions, informing future protocol development and informing future protocol development.\n\nIn the long term, governance will transition to a system involving [DAOs](https://iq.wiki/wiki/dao) and a representative council. Token holders will vote for council members who make operational decisions, though these decisions can be publicly challenged or overridden by the broader community. Governance decisions fall into three categories: ecosystem decisions (e.g., council elections), protocol parameters (e.g., [validator](https://iq.wiki/wiki/validator) seat counts), and protocol upgrades. While protocol upgrades are rare and require broad consensus, they allow for extensive changes to the network. [\\[7\\]](#cite-id-47g9cj37qsc)","summary":"FLOW Token is the native cryptocurrency of the Flow blockchain network, used for payments, smart contract deployment, staking rewards, and participation in gove...","images":[{"id":"QmX8zFb2DZFJn9tJjdTM5tAYc4xs2EVdd1ZQ3BpgaQhQjV","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[{"id":"Games"}],"media":[{"id":"QmWGocLX6KBUGBn2qitjHUkCKHzmEWcWB2bB4Aux7NPnSH","size":"0.07","name":"image","type":"GALLERY","source":"IPFS_IMG"},{"id":"QmSkhnkiKThH7TqpvS5ZAs88LUz5sTiZTvsB8y8f36rVCi","size":"0.02","name":"image","type":"GALLERY","source":"IPFS_IMG"},{"id":"https://www.youtube.com/watch?v=iBzrf7bwABE","size":"0","name":"iBzrf7bwABE","type":null,"source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=TKqPxb5JUF8","size":"0","name":"TKqPxb5JUF8","type":null,"source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=IkHoERaJ9nc","size":"0","name":"IkHoERaJ9nc","type":null,"source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[{\"id\":\"1sagh6oy8yq\",\"url\":\"https://www.gemini.com/cryptopedia/flow-blockchain-flow-crypto-flow-coin-dapper-labs-axiom-zen#section-flow-coin\",\"description\":\"Gemini on Flow\",\"timestamp\":1681877570530},{\"id\":\"321v91y8535\",\"url\":\"https://flow.com/flow-token-economics#tokenomics-intro\",\"description\":\"Flow introduction to FLOW\",\"timestamp\":1681879358328},{\"id\":\"n9v5kuicb7i\",\"url\":\"https://www.kraken.com/learn/what-is-flow\",\"description\":\"Kraken on Flow\",\"timestamp\":1681879378025},{\"id\":\"dtltpyt41a\",\"url\":\"https://kriptomat.io/cryptocurrencies/flow/what-is-flow/\",\"description\":\"Kriptomat on Flow\",\"timestamp\":1681904195375},{\"id\":\"8gcuh1rw12c\",\"url\":\"https://flow.com/flow-token-economics#tokenomics-details\",\"description\":\"Flow Technical details\",\"timestamp\":1681904419083},{\"id\":\"3l2h5kf2ynd\",\"url\":\"https://flow.com/token-distribution\",\"description\":\"Flow Token Distribution\",\"timestamp\":1681904759894},{\"id\":\"47g9cj37qsc\",\"url\":\"https://flow.com/flow-token-economics#\",\"description\":\"Flow Governance\",\"timestamp\":1681905142583}]"},{"id":"website","value":"https://flow.com/"},{"id":"twitter_profile","value":"https://twitter.com/flow_blockchain?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor"},{"id":"linkedin_profile","value":"https://www.linkedin.com/company/flow-blockchain"},{"id":"discord_profile","value":"https://discord.com/invite/flow"},{"id":"reddit_profile","value":"https://www.reddit.com/r/OnFlow/"},{"id":"github_profile","value":"https://github.com/onflow"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/flow/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/flow"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmVQGP7kae1QYKSCb7P8gp1ReZwpJ2TLKDchq36ieSmdNk\""},{"id":"commit-message","value":"\"Revise FLOW Token article for clarity and structure.\""},{"id":"previous_cid","value":"QmVQGP7kae1QYKSCb7P8gp1ReZwpJ2TLKDchq36ieSmdNk"}],"events":[{"id":"pGVs3h57hM","date":"2020-10","title":"Date Founded","type":"CREATED","description":"The Flow token (FLOW) was launched and made available for trading on cryptocurrency exchanges on October 6, 2020","link":"https://flow.com/"}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0xa817e9da10923C49C3eD3265Ec9aAb4FB2AF69FE"},"language":"en","version":1,"linkedWikis":{"blockchains":["flow"],"founders":["roham-gharegozlou"],"speakers":[]}}