What is Flux (FLUX)?

Deep Dive

1. Technology & Architecture

Flux operates a decentralized physical infrastructure network (DePIN) where users contribute hardware resources (GPUs, storage, CPUs) to form a distributed cloud. Its Proof-of-Useful-Work v2 (announced July 2025) replaced energy-intensive mining with practical computational tasks like AI model training and video rendering. The network uses a three-tier node system (Cumulus, Nimbus, Stratus) with varying hardware requirements and FLUX collateral stakes.

2. Tokenomics & Governance

FLUX has a fixed supply of 440 million tokens. Key mechanics:
- Node Rewards: 50% of block rewards distributed to node operators based on workload
- Developer Fund: 0.5 FLUX per block funds ecosystem development
- Cross-Chain: Parallel assets on 10+ chains (Ethereum, BSC, Kadena) enable DeFi integration

The Flux Decentralized Autonomous Organization (xDAO) lets node operators vote on protocol upgrades and treasury allocations.

3. Ecosystem Use Cases

Flux supports:
- Decentralized Hosting: Websites/dApps resistant to censorship (e.g., Kadena blockchain nodes)
- AI Infrastructure: Distributed GPU clusters for machine learning
- Enterprise Solutions: Hybrid cloud deployments combining Flux and traditional providers

As of November 2025, the network hosts 200+ applications and processes 1.2 million daily API requests.

Conclusion

Flux reimagines cloud infrastructure by decentralizing compute resources and incentivizing real-world utility through its token model. While its technical complexity and competition with hyperscalers pose challenges, Flux’s growing node count (+10,000 in Q3 2025) and partnerships with projects like Presearch signal traction. Can decentralized networks like Flux achieve critical mass against entrenched cloud providers while maintaining performance parity?