Beyond Code: Participation and Control

Validators

All query results are subject to validation by a permissionless node network before being committed. Validators stake $FLUX, verify proofs, and finalize results into the commit layer. Misbehavior results in slashing.

Validators are responsible for:

• Verifying proof integrity and data consistency for each query

• Submitting validated results to the commit layer

• Maintaining network liveness and result finality

• Earning query-based rewards proportional to validation activity

• Risking slashing for incorrect, missed, or malicious validation

Capsule Authors

Developers who submit query logic can define invocation terms and earn $FLUX through usage fees. They do not operate infrastructure, but contribute reusable logic that powers the ecosystem.

Capsule authors can:

• Define reusable query logic, proof behavior, and schema structures

• Submit Capsules to the registry for public or permissioned use

• Set invocation pricing models and earn $FLUX based on usage

• Update and version Capsules as the data model evolves

• Build data primitives used across DeFi, oracles, analytics, and AI

$FLUX Token Holders

Protocol governance is driven by token holders through proposal-vote mechanisms. Governance scope includes validator parameters, incentive models, and treasury disbursement. Delegation and quadratic models are under design consideration.

Holders may:

• Submit and vote on onchain governance proposals

• Delegate voting power to other participants or automated policy agents

• Signal support for roadmap directions and ecosystem growth areas

• Participate in governance modules targeting specific protocol domains (e.g., validator policies, data fee structures)

• Earn incentives for active participation or delegated influence

Governance Framework

Governance is executed via the Flux DAO. Early stages use contract-based voting and multisig enforcement, with future upgrades toward modular governance modules that allow domain-specific policy control (e.g., per-Capsule rules or developer group permissions).

The DAO governs:

• Validator set criteria and staking thresholds

• Fee split models between developers, validators, and the treasury

• Allocation of grant capital for the developer onboarding or research

• Updates to Capsule registry policies or query permission systems

• Emergency parameters, such as slashing rules or system halts

Proposals follow a structured lifecycle—from submission with minimum token threshold, to review and voting, with successful votes triggering onchain execution via multisig or DAO executor modules.