Flamingo introduces direct buyback and burn model for FLOCKS token

Flamingo Finance has introduced a new buyback and burn mechanism for its FLOCKS token, shifting away from a model that previously focused on reducing the supply of FLM, the platform’s native utility token.

Beginning with Epoch 28, which ended on Oct. 13, 25% of income generated from the FLOCKS token will be used to repurchase and permanently burn FLOCKS itself. This marks a departure from the earlier model, where that same portion of income was allocated toward burning FLM.

According to the Flamingo team, the change reflects the platform’s evolving focus on FLOCKS as a central component for yield generation and community incentives. FLOCKS is a dividend-distributing, multi-asset token created by burning FLM. It provides holders with rewards sourced from platform activity, such as trading fees, interest on loans, and minting rewards.

The newly implemented mechanism is designed to execute gradual buybacks through limit orders on OrderBook+, with the intention of minimizing volatility and avoiding opportunistic trading behavior. No FLM will be burned while the price of FLOCKS remains below 1 FLM equivalent in value; instead, FLM reserves will be used to acquire and burn FLOCKS.

Once purchased, FLOCKS tokens will be permanently removed from circulation, reducing supply. The team stated this approach is intended to establish consistent buy-side activity without adding sell-side pressure, aiming to support long-term token utility.

As part of the transition, Flamingo confirmed that the Epoch 28 distribution will include a one-time bonus, attributed to both the implementation timeline of the new mechanism and recent market conditions.

The full announcement can be found at the link below:
https://medium.com/flamingo-finance/a-new-era-for-flocks-909ddee9e5f7

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