Critical news came from the Reflexer Foundation, which is behind the RAI stablecoin recently praised by Ethereum inventor Vitalik Buterin. FLX, another governance-focused altcoin project by the Reflexer Foundation, has been repurchased from Paradigm. As a result of this development, the price of FLX jumped. Here are the details…
Strategic move made for altcoin
Team member of the Reflexer Foundation, reza.eth, made a strategic move in the cryptocurrency space, making an important announcement on the Reflexer Discord channel on September 7. There has been news that the Reflexer Foundation has successfully repurchased 150,000 FLX tokens from Paradigm for approximately $2.08 million. This development comes after Reflexer’s statement in May that they expressed their intention to distance themselves from Paradigm. What sets this buyback apart from the others is the way Reflexer handles purchased FLX tokens. Half of the 150,000 tokens are permanently out of circulation, signifying a commitment to reduce supply.
The remaining 50% of the tokens were allocated to the DAO treasury, enabling further development and initiatives in the Reflexer ecosystem. This strategic move reflects the evolving dynamics in the altcoin world. Stablecoins and their underlying protocols have been receiving increased attention lately. Reflexer’s approach to token redemption marks a solid ecosystem effort.
FLX price rises
On the same day, September 7, market data revealed a notable increase in the value of FLX, the native token of the RAI-based stablecoin protocol Reflexer. The token has crossed the $14.5 mark and is currently at $14.63. This represents a significant increase of 22 percent in just 24 hours. This increase in value not only underlines the appeal of Reflexer’s stablecoin offering. It also highlights the strong market sentiment surrounding their ecosystem. The cryptocurrency community watches with interest as Reflexer continues to chart its course in the crypto space.
Buterin announced his support for RAI
Separately, Vitalik Buterin, the founder of Ethereum, expressed his optimism about RAI, the first stablecoin on the Reflexer platform other than FLX. Buterin believes RAI has the potential to be an advocate for minority Liquid Staking Derivatives (LSDs), as we reported on cryptokoin.com. It also sees RAI as a possible solution to address Lido’s dominant position in the LSD ecosystem, where it currently controls more than 30% of the market.
Buterin shared these thoughts during a discussion on the Reflexer Finance Discord channel. He highlighted that RAI’s activist governance approach can be effective in supporting staked ETH while deliberately preferring non-dominant staked ETH. Buterin’s perspective marks a shift from his previous stance on the stablecoin ecosystem. Reza.eth, a member of the RAI team, said he agreed with Buterin’s vision. Emphasizing the need for more governance to support minority LSDs, Reza.eth added that a global agreement would be crucial to achieving this goal.
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