Creating a Stake and Staking Power

Rewards in FLEX are distributed using an internal weighting system called staking shares, often referred to as fShares.

fShares are not tokens. They cannot be transferred, traded, or sold. They exist only inside the protocol and represent how powerful your stake is compared to others.

Your share of daily rewards depends entirely on how many fShares you own relative to all other active stakes.

In simple terms, staking power is determined by four things:

• how much FLEX you stake • how long you lock it for • whether the stake is irrevocable • whether you hold bFLEX at the moment of creation

A simple, human-readable way to think about fShares is:

Staking Power (fShares) ≈ Amount of FLEX × Time Locked × Bonuses

Longer stakes are rewarded more than proportionally. This means one long stake is far more powerful than many short ones that add up to the same total time.

For example, staking 10,000 FLEX for 5 years is significantly more powerful than staking 10,000 FLEX for 1 year five times in a row.

Two additional bonuses can apply at creation:

If you hold at least one bFLEX, your staking power is doubled. Holding more than one bFLEX does not increase the bonus further. This bonus is checked only once, at stake creation.

If the stake is irrevocable, it receives an additional 25% power bonus on top of everything else.

All bonuses apply together and permanently define the stake’s power.

Share Price and Long-Term Advantage

The protocol uses a global fShare price to convert FLEX into staking power.

At launch, the fShare price starts at 0.1 FLEX, which means early participants receive more fShares for the same amount of FLEX.

The fShare price is designed to only ever increase and can never go down.

Each time a stake ends, the protocol evaluates whether the outcome of that stake implies a higher share price. If it does, the share price increases, with a strict cap on how much it can rise at once. This ensures smooth and predictable growth.

As the fShare price rises over time, new stakes receive fewer fShares for the same amount of FLEX. This structurally rewards early and long-term participants and prevents late entrants from gaining the same power with the same capital.

---

Earning Rewards

Once active, a stake earns rewards every FLEX Day.

There are two possible reward streams:

• FLEX rewards from protocol issuance • USDT rewards supplied externally through protocol activity

Each day, rewards are distributed proportionally based on fShares. If your stake represents 2% of all active fShares on a given day, you receive 2% of that day’s FLEX rewards and 2% of that day’s USDT rewards.

Rewards are calculated daily but accumulated internally until they are withdrawn or settled when the stake ends.