2024 Fluence DAO Report

News & Community
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This report encapsulates Fluence DAO spendings and revenues since it’s launch in February 2024 and prepared by the DAO governance committee.

Balance sheet

Total spendings by the DAO in 2024

  • 46,106,600 FLT
  • 4,482,055 USD

Remaining balances at the DAO treasury account:

  • 379,770,446 FLT
  • 7,175,164 USDC

Liquidity provided for market making:

  • 10,210,000 FLT
  • 60,000 USDC
FLT USD
Assets
Treasury balance 379,770,446 7,175,164
Liquidity provisioning 10,210,000 60,000
P&L
Income 0 11,647,219
Token sales 23,690,000 0
Operations 20,000,000 3,400,000
Marketing 2,050,000 1,012,055
Listings 43,000 70,000
Providers incentives 273,600 0

Treasury allocation

Initial FLT pool

The initial FLT launch allocation was 5% of total supply (50,000,000 FLT). Since the token launch on March 20, 2024, the DAO has allocated only ~50% of this pool to variety of activities:

  • 25,834,000 FLT to token sales, marketing, listings, and provider onboarding
  • 10,000,000 FLT to market makers

The remaining unspent amount stays at the DAO treasury.

Token sales

23,690,000 sold by the DAO for stablecoins (USDC/USDT):

  • 20,000,000 FLT sold via market makers
  • 3,000,000 FLT allocated for Bybit to sell as part of the launch
  • 690,000 FLT sold in private transactions

11,647,219 USD was received in total (USDC/USDT).

Liquidity

At launch, the DAO entered into agreements with two market makers: GSR and Wintermute. The contract with Wintermute was terminated and the token deposit returned. Currently 10,000,000 FLT is held and managed by GSR.

After acceptance of the liquidity improvement proposal, the DAO hired Studio B with a monthly fee of 8,000 USDC, and allocated 160,000 FLT and 40,000 USDT for liquidity provisioning.

MEXC listing liquidity provided: 50,000 FLT and 20,000 USDC.

Listing fees paid in total:

43,000 FLT

70,000 USDT

Community incentives

Initial spendings for the token launch:

  • 2,000,000 FLT distributed by Bybit to their community
  • 50,000 FLT spent on quest campaigns and prizes

Provider incentives

Initial provider onboarding: 51,000 FLT

According to the provider compensation proposal, 222,600 FLT was distributed to provider launch partners.

Other proposals

60,000,000 FLT transferred to FLT-GRANT contract. Token withdrawals are available one year after the submission of each claim. Claims are managed manually by the Governance Committee of the DAO, first claims were processed on April 19, 2024, so first withdrawals will happen from April 19, 2025. Currently, ~25,000,000 FLT is allocated for claims.

50,000,000 FLT transferred to the developer reward contract. The first FLT-DROP unlock started on April 20, 2024. Currently ~35,000,000 FLT has been withdrawn by the community from the contract. The remaining amount is locked.

20,000,000 FLT and 3,400,000 USDC transferred to Cloudless Labs according to the proposal. 1,012,055 USDC transferred as marketing expenses reimbursement at the end of year.

Circulating supply

Cloudless Labs has set up an API endpoint for circulating supply calculation.

It excludes from the total supply (1,000,000,000 FLT) a list of wallets holding DAO treasury and locked FLT:

The circulating supply at the moment of publication is: 90,545,768 FLT (~ 9% of total supply)

Circulating supply API endpoint: https://supply.kras.fluence.dev/circulating

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[COMMUNITY, THE TEAM DIDN:T DUMP TOKENS]

Did anybody ask how the initial supply went into circulation? Do you think tokens just appear in investors: or retail wallets? Bootstrapping. At launch, any project offers an IEO, IDO or fair-share sale for anyone who wants to buy. People bought from the project DAO (not from the team).

And there was no selling or dumping throughout the year. You can see there was no treasury income after April 9th, which means no more purchases (or no more selling, if you prefer, but in this case, that:s not the most accurate description). This explains why the token was purchased at an average of $0.50, while the price at the time was over $1. Everything can be verified on-chain.
https://etherscan.io/advanced-filter?fadd=!0x7F629403fDCC02aD83aA5debd1D4B1548982afaC&tadd=0x7F629403fDCC02aD83aA5debd1D4B1548982afaC&tkn=0xc10d70d703a7e05781fa480bac3f0381a19ddeeb%2c0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48

Then, this USDC goes to the treasury and can only be spent with a clear proposal and the vote of the majority of the holders.

[EXTRA FOR THE COMMUNITY]

Market-making liquidity consists of tokens that the market maker uses to keep the price stable when someone wants to buy or sell large amounts of tokens. These tokens are returned to the treasury at the end of the contract.

In June, people blamed the team for the ByBit Contest and the price crash. It looks like the contest was actually organized by ByBit themselves. (I wish Fluence had offered a public response on this at the time.)

[SUGGESTION REGARDING THE COMMUNITY]

I know that for a CEO with a long background in finance, or for a high-ranked developer who has been in crypto for a long time, this might sound naive, but.

The average retail investor might be working two jobs and facing financial problems. They might have just 1 hour of free time a day, which isn:t enough to dive deep into all the nuances of crypto. They enter this space taking big risks, hoping to improve their lives. They are afraid to lose their money. When they hear reports about token sales, they get scared, dump, and leave the community. The crypto community is made up of 85% of these people (according to David Vorick). Additionally, the Fluence haters, who specialize in scaring the life out retail, are highly motivated and constantly at work.

SUGGESTION: If there’s room for non-critical tasks, it would help immensely if the committee keeps the average retail investor in mind when communicating.

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Good proposal for FLT coin

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Adding to the suggestion regarding the community, those regular investors, who make up to 85% of the crypto space, are the ones who buy the token. So, keeping them in mind, I think it:s pretty important.

I forgot to mention that it:s very warming and much appreciated to see how transparent Fluence is.

And I think it:s important to mention that now Cloudless Labs allocation is ~15% instead of ~20%.

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