The information about Frax Share (FXS) is. 

 

Frax Share (FXS) is the governance and value-accrual token of the Frax Finance ecosystem, a decentralized finance (DeFi) protocol known for its unique fractional-algorithmic stablecoin system. It was launched on the Ethereum blockchain in November 2020, with the goal of providing a scalable, decentralized, and algorithmic form of money as an alternative to fixed-supply digital assets like BTC. 

 

FXS serves as a non-stable, utility token that holds rights to governance and all utility within the Frax Protocol. It is designed to be volatile, with potential for both upside and downside, and its market capitalization is tied to the future expected net value creation from seigniorage of FRAX tokens, fees, and excess collateral. The token plays a crucial role in maintaining the stability of the FRAX stablecoin and ensuring the long-term success of the protocol.

 

The supply of FXS tokens is hard-capped at 100 million tokens at genesis, with no inflation schedule in the protocol. Over 60% of the supply has been distributed over several years to liquidity providers and yield farmers through various programs, including liquidity incentives and governance proposals. The distribution is designed to halve every 12 months, similar to Bitcoin's halving events.

 

FXS holders have the power to vote on proposals and make decisions related to the Frax Finance protocol, such as adjusting key parameters, fees, and other important aspects of the system. They can also stake their tokens to earn rewards in the form of FRAX, FXS, or other tokens, and provide liquidity to decentralized exchanges (DEXs) by depositing FXS alongside other assets like FRAX or USDC.

 

The Frax Protocol, including FXS, was created by American software developer Sam Kazemian, along with Travis Moore and Jason Huan, who noticed the lack of stablecoins combining algorithmic monetary policy and collateralization. The protocol is community-driven, fully decentralized, and emphasizes a governance-minimized approach, with no active management.

 

FXS is used as a secondary form of collateral for the FRAX stablecoin. When the price of FRAX deviates from its target value of $1, FXS is either minted or burned to help restore the peg. The token is available on major exchanges and DeFi platforms like Uniswap and can be stored in secure wallets such as Ledger for protection against theft.

 

Posts on X highlight the growing interest in FXS, with mentions of its role in governing the Frax Protocol, earning protocol revenue, and expanding into areas like fixed yield and L2 solutions. The token is seen as undervalued by some, given the revenue streams from stablecoins like frxETH and upcoming developments in the Frax ecosystem.