Staking Rewards and Governance FLIPs

Hello Node Operators and Flow Community,

As node operators are a critical part of the Flow ecosystem it is important that staking continues to be a sustainable endeavor for all of you. With that in mind, a governance proposal was submitted by the Flow Foundation keep rewards at 5%.

The FLIP is available in the Flow FLIPs Repository and we encourage those interested to discuss its details on the associated forum post. We encourage all node operators and users to read the proposal and comment on the forum. There will be a public discussion at office hours on Thursday, June 30th.

The reward rate will not change until a governance FLIP detailing a change is passed. A governance FLIP is a new category of FLIPs that will establish a governance process for changing network parameters such as staking minimums, rewards rates and more.

Governance FLIPs are an extension of the existing FLIP process, which provide transparency to the decision making process, a consistent place and method of gathering community feedback, and documentation for the history of the Flow protocol and its governance changes. This new FLIP process is a work in progress and a complete proposal will be shared in the coming weeks.

Thank you.


The reward question is very tricky at this point for Flow because: on one side you would like to keep the rewards high to thanks to community to contribute to the network especially with Crypto winter here and the value of the Flow token has taken a massive hit, on another side, is there any justification to keep the inflation at 5% with the current Flow token utility ?
If we want to keep a decent reward rate, we need to tackle the Flow token utility question as well.

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Rewards at 5% is suicide in my opinion:

  • It is not possible to sustain this high rewards with fees.
  • There is no security risk as long as dapper continues to run all nodes. ( I don’t think it will change in next decade, let’s wake up from that dream )
  • With this much high staking rewards, there is no motivation to keep FLOW, this means there is no FLOW to spend on Dapps, which leads Dapps to use Credit Card instead of FLOW. ( You can simply check, how many accounts have 10 FLOW + balance free to use )
  • Dapps will not use FLOW will lead to death of FLOW token price.

There is some so called Flow Foundation, but I don’t have any information about what they do, how they do.

So I suggest 0% rewards, dapper sponsors to run nodes until community comes up with reliable reward plan. ( Eventually all rewards are going to Dapper anyway )

This will at least stop Flow Price downtrend because of inflation, there is no sense to have 105 FLOW after a year instead of 100 FLOW, when price went to half or quarter


You have to reward those who are running nodes right now. So probably lowering the rewards from 5% is a good step in the right direction, but cutting it to 0% is also a suicide.

Keeping a 5% reward rate with the current Flow utility will not make it

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@Redallica I agree but it is only problem when network is decentralized, now there is no danger like this. ( I mean no sane person is investing to run any node right now for sure with this high staking amounts )

I suggested 0% rewards till we find a sustainable model, and Dapper continues to run all network one way or another.

Currently there is no sink for FLOW token, transaction fees are symbolic, staking percentage is huge.

We need to accept currently network is not self sustainable.


Suggest to vote using to see Flow token holder’s opinions?


I’d love for the discussion of the actual FLIP to go onto the forum post specifically for that FLIP (FLIP-GOV-1: Maintain Staking Rewards).

Thanks bluesign for posting opinions there!

CC: @Redallica @dryrunner

I totally agree that FLOW needs a good enough economic model.

I think everyone wants to be rewarded for staking. And the percentage that is now is a very small percentage. I think it should be left for now. And talk about a decline after adding new staking options from third-party projects or after the team introduces new ways to stimulate the use of FLOW. But with super small commissions, there are not so many options left. It would probably be nice to follow some kind of quarterly or annual burning… but it’s too early to talk about it now. We need the growth of the ecosystem, the attraction of projects that will use FLOW. Raise funding for ISO, etc…