Flamingo Finance has shared new information regarding the upcoming release of FLOCKS, including FLUND migration details and exit fee removal.
FLOCKS is an evolution of the FLUND concept as a single-sided staking option. FLOCKS seeks to improve on FLUND by incentivizing long-term holding over short-term trading. Holders will receive a share of fees derived by Flamingo in the form of dividends, and will gain vote weight after the team integrates governance capabilities.
FLOCKS migration
Existing FLUND holders are the only users that will be able to enter FLOCKS before the start of Epoch 1. This opportunity will be available for approximately one week and ensures that investors will receive a 1:1 ratio of FLM (from FLUND) to FLOCKS. Migrating after the epoch has begun will cause an increasingly reduced conversion rate as dividends earned by the pool are accounted for in the swap.
For FLUND users seeking to maximize earnings before migration, Flamingo recommends remaining in FLUND until the migration week opens, then migrate before Epoch 1 starts to maximize dividends.
Users entering FLOCKS from other tokens will need to wait for Epoch 1 to start before they can make a purchase. As with FLUND migrations that occur after the migration window, the price of FLOCKS purchases will also take into account the share of dividends gained in the epoch at purchase time.
FLUND distribution and exit fee
Flamingo recently completed its Wave 3 modifications, the third round of four major planned adjustments to its liquidity pools. Due to changes in token distributions, FLUND now has income from several token sources that are not converted to FLM. Rather than updating the contract to fix this issue, the Flamingo team has decided to pay out these assets as part of the Epoch 1 dividends.
For FLUND holders that choose not to migrate, the exit fee has been removed. FLUND can now be sold on Flamingo without an extra fee, however the team has noted that FLUND purchases will be halted, so transactions should be considered irreversible.
Asset Support Initiative
The launch of FLOCKS corresponds with the start of the Asset Support Initiative, which seeks to partially compensate f- and p-asset holders affected by the Poly Network bridge exploit. Affected users will receive 50% of their losses in FLOCKS over two years after migrating to the updated assets via the Action Center.
The FLOCKS airdrops from the initiative will begin during Epoch 2. An exact time for the start of distributions will be announced closer to the time.
The original announcement may be read at the link below:
https://medium.com/flamingo-finance/flamingo-flund-flocks-update-531c4af219d9
