What is TokenFi, Floki's New Project?

Summary:

• TokenFi launched on Oct 27, available on Uniswap and PancakeSwap, a multichain token on Ethereum and BSC.
• Floki community approved TokenFi, resulting in a surge of $100M+ in market capitalization.
• TokenFi aims to target the global asset tokenization market with a launch on five networks.
• Token supply is 10 billion TOKEN, split evenly between Ethereum and BNB Chain; strategies are in place to counter sniping activities.
• TokenFi Staking Program offers substantial rewards for participants staking FLOKI tokens, with flexible claiming options and penalty fees for early unstaking.

Introducing TokenFi: A Closer Look at Floki's Sister Token

The launch of Floki’s recent venture, TokenFi, on October 27 has captured the attention of enthusiasts and investors alike. Floki's native token, $TOKEN, is now available for trading on Uniswap and PancakeSwap for Ethereum ($ETH) and Binance Smart Chain (BSC).

Setting the Stage: Floki Community Proposal

A pivotal development emerged on October 24, as the Floki community approved a proposal to introduce a new token designed to reward staking activities. 98.51% of the community approved this strategic move, aligning it with their demand for enhanced staking features and a framework known as 'Project TL.' 

“Floki has always had a mission of making crypto accessible to the masses, and a platform like this helps us accelerate this mission by giving the average Joe a platform for tokenizing their assets without having to spend a fortune or touch a line of code,” B, a core Floki team member told BSC News.

In the wake of the recent proposal, Floki experienced a notable surge in its market capitalization, with an impressive increase of approximately $100 million. Surpassing the $344 million mark, the significant price spike amounted to a 40% surge in value over the week. The emergence of TokenFi has sparked extensive curiosity amid unprecedented market movements and a surge of interest in Floki. 

What is TokenFi? Let's learn more about this today.

What is TokenFi: 

TokenFi has emerged as a platform to empower users to effortlessly launch their cryptocurrencies without coding expertise. With the promise of seamless fundraising from the Floki community and the potential to connect with exchanges and market makers for enhanced liquidity, TokenFi represents a leap forward for the Floki ecosystem.

An Ambitious Leap into the Global Asset Tokenization Market

By positioning itself at the forefront of the global asset tokenization market, TokenFi aims to revolutionize the process of crypto and asset tokenization. 

“Tokenization is the hottest trend in crypto right now and this trend will only accelerate because tokenization would likely contribute to more mainstream adoption of crypto than any other trend that has ever existed,” B said. “The tokenization industry is expected to be a $16 trillion industry by 2030, and BlackRock calls it the future of the markets.” 

With its initial launch set on five prominent networks, including Ethereum, BNB Chain, opBNB, Base, and Arbitrum, the platform aims for rapid expansion across additional blockchains in the near future.

The platform's incentivization structure, designed to reward protocol usage based on daily activity, is anticipated to foster a thriving ecosystem that encourages sustained user engagement and participation. 

According to the Floki team, TokenFi has a lineup of products slated to debut in Q4 2023.

Token Details and Operational Modalities

Token Supply and Distribution

TokenFi's tokenomics revolve around the issuance of 10 billion TOKEN, strategically split into 5 billion each on Ethereum and BNB Chain. To facilitate early trading on Uniswap and PancakeSwap, 10% of the total supply is available. 

With an equal distribution of 5% of the supply paired with LP on BSC and Ethereum, the initial circulating market cap for both chains is set at $25,000, culminating in a combined initial circulating market cap of $50,000 and an initial fully diluted market cap of $500,000 over a gradual four-year release period.

Countering Sniper Impact

Sniping is the act of automatically bidding on an auction in the last few seconds before it ends. Sniper Bots track and buy new tokens as soon as they are listed on a decentralized exchange. 

The team's approach to curbing sniping activities involves the implementation of a 100 million cap on individual wallets during the initial trading hour. Complementing this measure, a 20% tax levy for buying and selling within the launch hour aims to deter exploitative trading practices, redirecting funds back to the Treasury for developmental purposes.

First-Hour Launch Measures

In light of the considerable anticipation surrounding the Floki token, precautionary measures have been implemented to mitigate the impact of sniping activities. Tokens are distributed equally and a more inclusive trading environment is fostered by a 1% wallet cap during the first hour post-launch.

Further, following the first hour, the tax rate was reportedly dropped to 5%, with further adjustments slated to be determined by the DAO. 

Notably, major exchange platforms have refrained from listing TOKEN until the DAO reaches a consensus on future buy/sell tax policies, emphasizing Floki's commitment to ensuring a fair and transparent trading environment.

“In five years from now, God willing, I expect the TokenFi platform to be one of the biggest and most known tokenization platforms in the world,” B stated. “The industry, certainly, would be much bigger, most likely worth several trillions of dollars based on assets tokenized, and TokenFi would have played a key role in helping to tokenize some of this value.”

TokenFi Staking Program

Allocation and Rewards

Floki stakers will receive a substantial 56% allocation of the total TokenFi supply, with an additional 2% reserved for Floki NFT holders and qualifiers of the "Diamond Hands" program.

Staking Durations and Multipliers

Participants can opt for staking periods ranging from 3 months to 48 months. The staking duration directly impacts the rewards and annual percentage yield (APY) earned, with multipliers assigned as follows:

• 3 months — 1.25x
• 12 months — 2x
• 24 months — 3x
• 48 months — 4x

Unstaking Options and Penalties

While the minimum staking duration is three months, users have the flexibility to unstake their tokens earlier, albeit with a penalty fee. This fee is deducted from the staked FLOKI tokens and sent to a burn wallet, fostering a deflationary mechanism within the Floki ecosystem. The penalty fee structure varies according to the selected staking duration:

• Early unstaking fee for 3 months plan: 5%
• Early unstaking fee for 12 months plan: 10%
• Early unstaking fee for 24 months plan: 15%
• Early unstaking fee for 48 months plan: 20%

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TokenFi: Another Usecase Added to Floki Ecosystem

The availability of TokenFi on both PancakeSwap and Uniswap has enhanced accessibility, enabling users to seamlessly participate in the staking program and capitalize on the evolving opportunities presented by the platform.

In recent market trends, the sister token $TOKEN has captured attention and secured its position as the top 'hot pair' on the DEXTools App.

“With the Floki core team's vision for TokenFi, our strong roadmap, our ability to execute, and the solid partnerships we already have locked in and lined up that we will be announcing in the coming weeks and months, I think it would be clear to people that we mean business,” B told BSC News.

The success of the FLOKI staking program has exceeded expectations, surpassing $41.35 million in total value locked (TVL) within two days of its launch. This surge in staked FLOKI tokens represents over 12% of the circulating supply.