FLOW is used in participating in the Flow blockchain ecosystem, not only for staking but also for transactions on the network.
FLOW was created with no maximum number of token supply. During its first launch, Dapper Labs released 1.25 billion tokens and then distributed them according to the diagram below.
- 20% allocated to Dapper Labs
- 18% allocated to the Flow development team
- 29% allocated to Flow’s ecosystem development
- 13% allocated to the investors (Community Sale)
- 20% allocated to the early Investors, which are large backers who invest more than 1 million dollars, and small backers who invest less than 1 million dollars
Please note that FLOW is inflationary. However, it is possible that FLOW inflation rate will be at 0% if there are enough transactions as the inflation rate will be correlated with the number of transactions on the blockchain. If the number of transactions is small, the node’s revenue from the transaction fee will be less, and FLOW will be produced more. In contrast, if the number of transactions is high, FLOW will be produced less.