🏛️Understanding the $FLY Governance Token
Governance is the core of the Fluidity Ecosystem as it provides guidance and structure on determining the size and frequency of payouts, the sources of yield and the token distribution policies. The governance token also entitles the holders to have increased expected outcome overtime of receiving larger dividends when utilising their Fluid Assets
The $FLY Governance token serves multiple purposes including:
Utility Mining.
Bootstrapping and Rewarding Protocols.
Receiving Higher Expected Outcomes
Utility as a Service.
Changing Protocol Parameters.
Staking in Fluidity Vaults
The FLY token will act as a governance token allowing for direct vote casting powers, allowing users to select protocols or behaviours that will result in an increased expected outcome. This will also allow for users to discover new merchants and be incentivised to participate in retail payments.
This is important as it will allow for a symbiotic relationship where protocols are able to receive revenue and utility, and users have an incentive to participate as intended. These types of incentives can be used in different use cases, increasing user retention as well as bootstrapping new protocols.
High-value Merchants or DAOs can potentially receive higher expected outcomes of winning and better incentives over time when participating in the Fluidity ecosystem.
We can go to broader categories, we have a list of the top smart contracts, and we give yield to the users interfacing with those, including specific DAOs or use cases.
The Fluidity Governance token allows the protocol to pay higher yields for specifications or use cases. This is significant as this can cause liquidity, revenue, and users to be transferred between protocols in the wider crypto space. An example decision can be: Fluid Assets pay 2x higher yield if you use them on Dex A vs Dex B. This may potentially cause users of Dex B to switch to Dex A.
Protocols can also create incentive pools to pay out their governance token to Fluid Asset users in order to bootstrap themselves.
For example: From a Fluidity user's point of view, Missions are a great way to look at it, however, we would be taking a very generalist approach to it.
A protocol would be creating a pool that once you interact with this contract you will be able to obtain the reward from that pool. Swap/Transfer/Deposit, once you call a method from these you are able to be rewarded.
In this scenario, a Fluidity user does not need to do anything special, to get exposure to this yield. As a user uses their fluid assets. We aren’t asking people to change their habits, and they do not even need to know this program exists and they earn more yield.
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