1/ I was recently asked this question about $FLASH in our telegram group. I wanted to share my response here 👇
2/ ETH pays miners for securing the network.
Every day, $ETH holders are optionally accepting dilution to subsidize the value of the network.
Bitcoin does the same thing.
3/ $FLASH is not much different in that holders are helping subsidize the protocol. The major different is that instead of paying miners/validators for securing the network, we are paying stakers for stabilizing the Flash protocol and primary asset.
4/ The more you help stabilize it (staking takes tokens out of circulation) the more efficient the protocol becomes in the goal of providing instant5, upfront, yield.
5/ Flash is young, so the token is extremely volatile. However, as more Flash is staked, the more stable it becomes. The more stable it becomes, the more confidently people can stake for upfront yield.
Another example could be the traditional US Dollar.
6/ Every day, we are being inflated away. From stimulus checks to artificial printing, there is nothing we can do about this. Those closest to the "printers" are the ones getting wealthier while the responsible individuals (savers) see their buying power reduced each and everyday
7/ Flash is the opposite in that, allowing the users to be closest to the printers.
If you actively participate (stake), your percentage of the network grows relative to everyone else.
8/ Flash has a long way to go to prove this model is sustainable and a viable alternative to traditional yield tokens, but this is the thesis we are built upon.