Arthur Hayes shared the Flop Network yellow paper, identified as v0.5.0 draft. Some sections of the document are still marked as planned.
Genesis supply and initial allocation
According to the yellow paper, Flop Network will start with a genesis supply of 2.48346 billion FLOP. The entire amount is allocated to miners, validators, and Agent airdrops, with no VC presale or auction.
Block rewards halve every 730 days
Block rewards start at 96 FLOP per block and halve once every 730 days. The schedule runs 96→48→24→12→6→3, for a total of five halvings over 10 years. After the fifth halving, issuance remains fixed at 3 FLOP per block.
The reward split is set at 75% for miners, 10% for validators, 10% for Agents, and 5% for stakers. The paper also notes that the detailed distribution policies for the Agent and staking reward pools have not yet been determined.
Subsidies for Flop Labs and the foundation
Separate from block rewards, Flop Labs and the foundation will each receive an independent subsidy of 8 FLOP per block. Those subsidies decline on the same halving schedule and fall to zero after the fifth halving. Over 10 years, the cumulative distribution is estimated at about 1.955 billion FLOP.
Supply does not cap after the fixed-reward stage
The yellow paper says total supply does not stop growing once the network enters the fixed-reward phase. Around year 12, cumulative issuance is projected at about 11.921 billion FLOP. Around year 14, that figure rises to about 12.11 billion FLOP. After that, the network will continue adding 3 FLOP per block permanently, or about 94.608 million FLOP a year.
Target fee distribution
For protocol fees, the target allocation is 80% to miners, 10% to validators, and 10% burned.
Consensus and verification design
The paper also describes the protocol’s core technical structure. The consensus layer uses a BFT-DAG model that combines BABE block production with AlephBFT finality. The finality committee is set at 100 validators.
Its main verification mechanism, PoUI, or Proof of Useful Inference, is built as a four-layer verification stack. That includes optional TEE hardware proofs, mandatory TOPLOC activation commitments, independent optimistic re-execution with slashing, and on-chain settlement with ZK aggregation.