Fluence
Hey, friends!
We are still in a bull market even though we have âcooled offâ a little bit.
In earlier cycles, we have sold off a little bit before the halving. Will this time be different?
Anyway, todayâs newsletter is an intro to Fluence (disclaimer: I am an investor).
Also, I wanted to try out a new format today, so this newsletter is mostly with bullet points. Some people have requested that they would like some newsletter pieces with easily condensed information, so I will give it a try.
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Fluence
Introduction
⢠Fluence is a AI + Depin project supported by @Filecoin and @protocollabs
⢠Provides developers and users with a decentralized cloudless computing platform + marketplace
⢠Essentially building a network of computing providers focusing on decentralization and transparency
⢠The network is governed by Fluence DAO governed by the $FLT token
Introduction
Fluence is an open-sourced decentralized network that represents a cloudless/ serverless computing platform + marketplace based on crypto-economic incentives. What this means is that they allow anyone to contribute computational power (DePin) or request computations (AI) to be done, all in a decentralized manner without central servers involved.
DePin involvement
This is where Fluence fits into the DePin narrative:
⢠Trustlessness: the $FLT token is used as crypto-economic incentives which are given to reward users + data centres around the world that provide compute to the Fluence network (vast P2P network of compute with servers hosted on various providers).
⢠Verifiable: all computations performed by the network are verified using blockchain and cryptographic proofs.
AI involvement
The network can also support AI initiatives. Providing decentralised and verifiable compute is important in order to prove that AI engines on the network are trained on specific datasets + prove that queries are executed without manipulation from external sources.
The cloudless platform can also run open decentralised AI models to ensure transparent and uncensored outputs.
Stakeholders
What does this mean for those interested in Fluence:
⢠Developers: use Fluence's open-source and P2P network to build dApps, APIs and other digital services
⢠Compute providers: earn rewards by providing compute to the Fluence network and marketplace
⢠Users: stake for rewards + govern the protocol
⢠Compute resources and jobs are secured with $FLT stakes. Providers then submit Capacity Commitments specifying CPU cores and rental prices.
Activated hardware generates Proofs of Capacity, which are validated on the Fluence blockchain.
⢠Providers and stake delegators are rewarded with $FLT for submitting required proofs. If insufficient proofs are submitted, the stake is slashed.
⢠Stake required is defined by protocol and denominated in USD equivalent. The protocol target is $200 of FLT tokens to be staked per each core added. So, for example, typical 64-core server CPU would need $200 * 64 = $12,800 stake in FLT.
⢠The protocol optimizes for: ~$10 revenue per Compute Unit per month for target network capacity. Every CPU core added to the network should earn this amount on average in FLT rewards, until the network reaches its economically sustainable capacity.
⢠Fluence's compute platform generates stablecoin revenue for providers and delegators, rather than $FLT rewards. Learn more here: https://blog.fluence.network/flt-staking-for-compute-resources/
This results in a reduced circulating supply of $FLT, and correspondingly less sell pressure on $FLT.
FLT token
Here is what users can do with the $FLT token. For each CPU added to provide compute power to the network, users + compute providers have to stake $FLT and will be compensated in $FLT rewards in return.
$FLT holders also have the power to create and vote on governance proposals. Developers pay providers in $FLT tokens as compensation for providing compute power.
The Fluence DAO has also allocated 5% of $FLT supply to developers who have an active GitHub account.
Learn more here:
⢠https://blog.fluence.network/fluence-tokenomics-explained/
Conclusion and narratives for FLT
⢠Fits in the ever-growing AI + DePin narrative
⢠Works for a variety of use cases such as P2P applications, cloud-native applications and blockchain infra projects
⢠Backed by big funds like @multicoincap and @protocollabs
⢠Decentralised computing
⢠Listed on tier 1.5 exchanges, and if the traction continues to grow a tier 1 listing is imminent
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All right, I guess thatâs it for today. Hope you liked the article and that you got even more bullish on Fluence.
See you around, anon!
Stay bullish.
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