What is Flux (FLUX)?

Deep Dive

1. Purpose & Value Proposition

Flux aims to decentralize the internet's backbone. It provides a suite of services known as Flux Cloud, which functions like a decentralized version of AWS or Google Cloud. This allows developers to deploy websites, blockchain nodes, games, and AI applications on infrastructure that is resilient, censorship-resistant, and operated "by the people, for the people" (Flux Official). It targets the massive and growing cloud computing market by offering an alternative where users control their data and applications.

2. Technology & Consensus

At its core, Flux utilizes a custom blockchain secured by a novel consensus mechanism called Proof-of-Useful-Work (PoUW). Unlike traditional Proof-of-Work (used by Bitcoin), which dedicates energy to solving random hashes, PoUW v2 directs the network's computational power toward processing real workloads, such as AI model training or application hosting (RunOnFlux). This transition, completed in October 2025, means only nodes providing useful services earn block rewards, making the network economically and environmentally sustainable.

3. Ecosystem & Token Utility

The Flux ecosystem is powered by its native FLUX token. The network consists of thousands of globally distributed FluxNodes, which are enterprise-grade servers that provide the actual compute, storage, and bandwidth. To run a node, operators must stake (lock) FLUX as collateral, aligning their incentives with network health. The token is also used to pay for services on Flux Cloud. A key innovation is parallel assets—FLUX tokens issued on other blockchains like Ethereum and Kadena—which provide liquidity and enable DeFi integrations across ecosystems (RunOnFlux). The community governs the project through a decentralized autonomous organization (xDAO).

Conclusion

Flux is fundamentally a decentralized infrastructure layer that turns cloud computing into a community-owned utility, secured by a consensus mechanism that rewards practical work. Will its model of useful work prove to be the sustainable engine for a user-owned internet?