Frax Finance ยค
English ๐Ÿ‡ฐ๐Ÿ‡พ
English ๐Ÿ‡ฐ๐Ÿ‡พ
  • Frax Ecosystem Overview
  • FXS & veFXS
    • Frax Shares (FXS)
    • veFXS
    • Gauges
    • FXS Distribution
    • FXS Smart Contract & Addresses
  • GOVERNANCE
    • Frax Governance Overview
    • How It Works
    • Advanced Concepts
    • Fraxtal Snapshot Voting
  • FRAX V1 - ORIGINAL
    • Original Design
    • Staking Contracts
    • FRAX ABI & Token Addresses
    • Frax V1 Pool ABI & Addresses
    • Core Frax Multisigs
  • FRAX V2 - Algorithmic Market Operations (AMO)
    • AMO Overview
    • AMO Minter
    • Collateral Investor
    • Curve
    • Uniswap v3
    • FRAX Lending
    • Decentralization Ratio (DR)
  • FRAX V3 - 100% CR AND MORE
    • Overview
    • Fraxtal
    • AMOs
    • RWAs
    • sFRAX
    • FXBs
    • sFRAX Token Addresses
    • sFRAX & FXB Multisigs
  • Bridging
    • Fraxferry
    • LayerZero x Stargate
    • Fraxtal Bridge
  • Frax Price Index
    • Overview (CPI Peg & Mechanics)
    • Frax Price Index Share (FPIS)
    • FPIS Distribution
    • CPI Tracker Oracle
    • FPI Controller Pool
    • veFPIS
    • FPIS Conversion / FPIS Locker
    • FPI and FPIS Token Addresses
    • FPI Multisigs
  • Fraxswap
    • Overview
    • Technical Specifications
    • Fraxswap Contract Addresses
  • Fraxlend
    • Fraxlend Overview
    • Key Concepts
    • Lending
    • Borrowing
    • Advanced Concepts
      • Position Health & Liquidations
      • Interest Rates
      • Vault Account
    • ABI & Code
    • Fraxlend Multisigs
  • Frax Ether
    • Overview
    • frxETH and sfrxETH
    • Technical Specifications
    • Redemption
    • frxETH V2
    • frxETH V2 Technical Details
    • frxETH Code & V2 Addresses
    • frxETH and sfrxETH Token Addresses
    • frxETH Multisigs
  • BAMM
    • Overview
  • Frax Oracle
    • Frax Oracle Overview
    • How It Works
    • Advanced Concepts
    • Fraxtal Merkle Proof Oracles
  • Guides & FAQ
    • FAQ
    • Staking
    • Uniswap Migration / Uniswap V3
    • Fraxswap / FPI
  • Miscellany
    • All Contract Addresses
    • Bug Bounty
    • Miscellaneous & Bot Addresses
    • API
  • Other
    • Audits
    • Media Kit / Logos
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  • Community (65% โ€“ 65,000,000 FXS)
  • Team, Advisors, Investors (35% โ€“ 35,000,000 FXS)

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  1. FXS & veFXS

FXS Distribution

The distribution of FXS across the system

PreviousGaugesNextFXS Smart Contract & Addresses

Last updated 7 months ago

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Community (65% โ€“ 65,000,000 FXS)

DeFi Protocols have made use of liquidity programs to jumpstart growth and distribute protocol tokens to community members. To that end, 60% of all FXS tokens are to be distributed through various yield farming, liquidity incentives, and exclusive governance proposals across a number of years. 5% Is allocated to more team-discretionary activities such as 3rd-party grants, audits, bug bounties, and partnerships (not for personal team member benefits).

60% โ€“ Liquidity Programs / Farming / Community โ€“ Via gauges & governance halving naturally every 12 months

Per the original design specs for FXS distribution, the FXS supply will halve every 12 months on December 20th each year. Initially, per , the emission was 25,000 FXS per day to the FXS gauges. As of 10/2/2024, due to 3 halvenings (see below), the current daily emission is 3,125 FXS. These changes do not unlock locked LPs as they are the normal emission schedule of the FXS supply. As DeFi is an evolving landscape, these emissions can be changed by a full Frax Improvement Proposal (FIP) governance vote where LP locks and boost weights can be redone if the FIP is passed. Full votes require 2 weeks of discussion followed by a token holder vote per the official governance process.

Community governance can decide which pools, programs, and initiatives to support with the emission schedule, but it cannot be increased past the 100,000,000 FXS supply max. Thus, a maximum of 60,000,000 FXS will be distributed to the community for liquidity programs and other DeFi initiatives as they appear in the space as voted by governance. New programs can be added by governance to the remaining allocation, but no more than 60,000,000 FXS can be allocated due to the hard cap of 100,000,000 FXS distributed. This is to put a hard cap on the amount of FXS as well as to put a hard duration on the number of years required to distribute the FXS. This emission rate was chosen to balance the need for a large amount of rewards for early adopters while not distributing all FXS too early which is needed for long term community sustainability. The FXS emission should be thought of and modeled more after Bitcoin mining than anything else. FXS distribution needs to be multi-year, extended, and sustainable until the protocol reaches ubiquity.

Community Treasury:

5% โ€“ Project Team Treasury / Grants / Partnerships / Audits / Security-Bug-Bounties โ€“ via Team and Community discretion The Project Treasury should be used for making grants for development of the Frax technology, open source upkeep of the code, future audits of smart contracts, bug bounties through responsible disclosure, possible cross-chain implementations, team compensation, creation of new protocol level features and updates, Frax Improvement Proposals (FIPs), partnerships with exchanges and DeFi projects, providing liquidity on AMMs at launch. The usage of this fund is dependent on the discretion of the team.

Team (Discretionary) Treasury:

Team, Advisors, Investors (35% โ€“ 35,000,000 FXS)

20% โ€“ Team / Founders / Early Project Members โ€“ 12 months, 6 month cliff Team tokens are retained for founders and original early contributors to Frax. The Frax Protocol was conceived in late 2018 and work began in early 2019. The Frax concept has been over 6 years old since conception. The contributions of founders and early members that worked on Frax was crucial to releasing the protocol. The team will continue to work on Frax for its lifetime along with the greater community. This distribution was completed on 12/20/2021.

Team Distribution Treasury:

3% โ€“ Strategic Advisors / Outside Early Contributors โ€“ 36 months Advisory tokens were allotted for strategic work done in legal, technical, and business efforts to advance the adoption of the Frax protocol. The tokens were vested evenly over 3 years and completed on 12/20/2023.

Advisor Distribution Treasury:

12% โ€“ Accredited Private Investors โ€“ 2% unlocked at launch, 5% vested over the first 6 months, 5% vested over 1 year with a 6 month cliff The first round in Frax was done in August of 2020 with a small allocation that was sold out in under 2 hours. The remainder of the round was done individually through private placements. This vesting had a small amount of their tokens (~2% of the total 100M supply) distributed at Day 0 / launch. The remaining 10% was vested evenly over 1 year, half of which had a 6 month cliff. This distribution was completed on 12/20/2021.

Investor Distribution Treasury:

FIP-16 veFXS gauges
0x63278bF9AcdFC9fA65CFa2940b89A34ADfbCb4A1
0x9AA7Db8E488eE3ffCC9CdFD4f2EaECC8ABeDCB48
0x8D4392F55bC76A046E443eb3bab99887F4366BB0
0x874a873e4891fB760EdFDae0D26cA2c00922C404
0xa95f86fE0409030136D6b82491822B3D70F890b3