Floki发文回应香港证监会评论：高APY源于将TokenFi大部分供应分配给Floki质押者
Floki It has been noted that the Hong Kong Securities and Futures Commission (SFC) placed the Floki and TokenFi staking projects on the “suspicious” list on January 26, 2024 due to the excessively high annual interest rates of these two projects.
The reason for this is a misunderstanding of how Floki’s staking APR is calculated and how Floki maintains sustainably high returns. Floki is committed to maintaining compliance and values its relationships with regulators.
Floki outlined several steps it has taken to comply with regulators expectations and explained how its high APR works.
Floki posted a disclaimer on its website warning Hong Kong citizens that there was no way to participate in the staking program until issues with regulators were resolved; it also took technical steps to ban Hong Kong IP addresses from accessing the staking service. In addition, offline promotions in the jurisdiction were also suspended in mid-December 2023.
Why is the annual rate of return too high?
The core issue of concern to the SEC is the significantly higher annual yield (APY) offered by Floki and TokenFi staking programs.
As opposed to traditional models of increasing supply or providing marginal returns from a limited pool of tokens, Floki plans to operate on a unique premise. It rewards participants with $TOKEN, the native token of its tokenization project TokenFi.
TokenFi is no ordinary platform, but a pioneering project in the emerging tokenization industry, which is expected to reach $16 trillion by 2030. Larry Fink, CEO of asset management firm BlackRock, calls tokenization the future of the market and believes it is bigger than a Bitcoin ETF.
The APY of the Floki staking project is so high because the majority of TokenFi’s supply is allocated to Floki stakers. Floki distributes the majority of the TokenFi supply to Floki stakers. This ensures a sustainably high APY and also ensures that true supporters of the project receive the majority of the tokens, not just VCs or early buyers.
Sustainability and decentralization
High returns naturally raise sustainability issues. While APY is indeed affected by market conditions and potential demand for $TOKEN, it is designed to adjust itself.
Rewards are based on market capitalization, and in the case of TokenFi, market capitalization has experienced significant growth since its inception as the market considered it a project with great potential.
The Floki and TokenFi staking systems run independently on the blockchain, meaning they can continue to run and users remain in charge even when the team is away. The same rules apply to everyone, showing a strong focus on fairness and decentralization.
Importantly, $TOKEN’s value comes from the growth of TokenFi and people’s trust in it. Therefore, the annual interest rate will change as the market value of the token changes. Simply put, the rewards brought by staking demonstrate the community’s enthusiasm for TokenFi, not the instability of the token.
Participate in supervision
Despite the regulatory challenges, the Floki team emphasized that they are committed to working with regulators to address their concerns.
Floki believes that cooperation with regulators is not adversarial but collaborative, both in spirit and in practice. “Our approach is to strike a balance between innovative financial products and responsible participation in the regulation of the digital asset space.”
About TokenFi
TokenFi is Floki’s sister token and all-in-one tokenization platform that allows users to easily launch tokens or tokenize real world assets (RWA). TokenFi is committed to transforming the trillion-dollar tokenization industry by providing a user-friendly interface that requires no programming expertise.
