FLUX (FLUX) New Protocol Submission

[alimalik80]

Protocol Name

Flux

Symbol

Flux

Description

Flux is the new generation of scalable, decentralized, user-powered cloud infrastructure. Simply develop, manage, and spawn your d-applications on multiple servers at once. Ready for web3, dapps, identity-services, and more.

Fee / revenue data source

Flux uses a fixed, contracted revenue source from a single partner. We will be adding additional partners based on ongoing negotiations (Presearch + Firo). These are contracted deals to utilize FluxOS infrastructure. Separately developer-hosting revenue will be publicly accessible endpoint data (mainnet payments), and will be added to total network revenue. (edited)

Can you describe the protocol's tokenomics? Who are the demand and supply-side participants in the protocol?

Flux tokenomics are entirely decentralized.
At genesis (February 2018), Flux allocated 0.7% of the token supply to the team (upon completion of mainnet), 2.9% of the token supply to a self-funding Foundation to manage ongoing development, and 1.7% of the token supply to an exchange/liquidity pool.
The remainder of supply was solely GPU-minable for the first six months of block production until computational nodes were launched, and the reward structure was split (75% GPU, 25% computational node operators).
In March 2021, the network underwent a fork/upgrade, and the reward structure was adjusted (50% GPU, 50% computational node operators). This upgrade included the launch of parallel assets; Flux on multiple chains beyond our POW mainnet (ETH, KDA, BSC, TRX, SOL, DOT, ADA, etc).

There are currently three tiers of FluxOS computational nodes. Each tier requires collateralization of Flux to meet network specs. As nodes are user-powered, there are closed-source benchmark tests that are adjusted regularly to ensure operators meet minimum specs (not cheating).

CUMULUS
10,000 FLUX
Hardware Requirements
2 vCore
4 GB RAM
50 GB HDD/SSD
2.5 TB Bandwidth
VPS and ARM64 compatible
Deterministic Block Reward
7,5%

NIMBUS
25,000 FLUX
Hardware Requirements
4 vCore
8 GB RAM
150 GB SSD
4 TB Bandwidth
VPS and ARM64 compatible
Deterministic Block Reward
12,5%

STRATUS
100,000 FLUX
Hardware Requirements
8 vCore
32 GB RAM
600 GB SSD
6 TB Bandwidth
VPS compatible
Deterministic Block Reward
30%

Flux from the block reward is paid to these network operators to incentivize to the allocation of compute-power. The Flux node operators are the supply side of the utility model.
The supply side of the network currently contributes:
10k+ vCores
34TB+ RAM
800TB+ SSD
32+ Countries
190+ Providers
Resources - https://home.runonflux.io/dashboard/resources
Locations - https://home.runonflux.io/dashboard/map
Economics - https://home.runonflux.io/dashboard/economics

Separately there is a demand-side to complete full-circle utility.
If developers can dockize their applications, they can launch on FluxOS.
Registration Portal - https://home.runonflux.io/apps/registerapp
30+ Dapps Currently Live - https://www.runonflux.io/fluxos?_gl=1*1jgx3k8*_ga*MzYwNTYyMzEzLjE2MzUzNDE1ODc.*_ga_M3VPBDLWV7*MTYzNTM0MTU4Ni4xLjAuMTYzNTM0MTU4Ni42MA..#dapps-section

Applications require monthly payment (validation on Flux mainchain) to ensure network distribution. FluxOS includes a balancer that will roll d-application to another node if a node is removed from the network by the user. Instances are sold in increments of three (RunOnFlux/flux#347).
Rewards for any developer/service that pays to run a dapp on FluxOS are returned to node operators via additional rewards. This would be included in revenue calculations.
Some applications are globally distributed (all node operators can choose to run the application). We have a current partnership with Kadena (https://kadena.io/). KDA pays Flux to host KDA-Chainweb + KDA-Data nodes on our decentralized infrastructure (globally distributed). The payments are paid out to node operators. According to the api endpoint it's $27,064 for the last 30 days and $46,108 over 90 days. Using KDA average daily dollar price tied to weekly payout quanitity (paid in KDA, not Flux). Our similar partnerships with Firo + Presearch launch this quarter.
We do not include any Flux (or incentivization payments) in our revenue calculations.

How much demand-side revenue (non-inflationary or subsidized earnings) did the protocol generate over the past 30 days?

Flux primarily generates revenue through a Kadena partnership (to node operators in KDA). This generates approximately $27,064 revenue to compute providers per month. This partnership has been running for approximately 15 months.
We anticipate Firo + Presearch partnerships to start in Q4, 2021. This will be applied to revenue.
We anticipate increased utilization of the Flux network post-upgrade (docker-compose, ipfs, etc). Any developer-hosting fees will be added to net revenue.
NO REVENUE FROM NETWORK INCENTIVIZATION (Flux block rewards) is included in revenue calculation.

How much demand-side revenue (non-inflationary or subsidized earnings) did the protocol generate over the past 90 days?

Revenue generation based on payments (value at the time of payment) over the last 90 days is approximately $46,108. We have not finalized the API calculation.

Why do you believe this protocol is a good fit for The Web3 Index?

Some protocols talk about decentralization. Flux is pure decentralization.
The project has been building for 3.5 years with no VC or insider allocations/funding. Fully self-funded through 3-year bear-market, now powered by 2,000+ user-operated computational nodes.
Flux has been GPU-minable only since day one. Team/foundation/liquidity token allocations at genesis (3.5 years ago) are under <6% of token supply. Even the project’s core team either had to buy or mine their holdings beyond 2018 allocation. The team is committed to GPU-POW to ensure that tokenomics remain as distributed as possible for the foreseeable future.
Secondly, in terms of the FluxOS computational network. FluxOS has been USER-powered since day one. No collocated, or centralized VPS-reselling. Anyone can spin up a computational node from their home. For the smallest tier node, even Raspberry Pi will suffice. For larger tier nodes, higher CPU/RAM/SSD specs are required.
The network is also scaling both horizontally and vertically. With the introduction of parallel assets, node count has increased two-fold over the last six months (there are additional plans for collateral halving). Plans to dramatically increase bench (CPU/RAM/SSD) requirements are planned to go into effect in Q2, 2022. Due to the economics (nodes incentivized via Flux block rewards), costs are lower than other cloud providers. Example: 4CPU, 16GB RAM, 160SSD x 3 instances = about $2.5/month on FluxOS. This VPS costs approximately $100/month on AWS, $150/month on Azure.
Two recent articles about how Flux and Web3 infrastructure services are planned to align.
https://fluxofficial.medium.com/we-the-people-of-flux-c045c0210ba2
https://cointelegraph.com/press-releases/flux-the-infrastructure-launchpad-for-web-30

Category

Work/Service Protocol

Subcategory

Compute

Website

https://www.runonflux.io/

Twitter

https://twitter.com/RunOnFlux

Coingecko or Coinmarketcap URL

https://coinmarketcap.com/currencies/zel/