Hey Fluxers, we are gearing up to fork the Flux blockchain, which will change how the network is secured and how contributors are rewarded. We are transitioning to Proof of Useful Work v2 (PoUW v2), where, post-fork, crucial network tasks such as block production and transaction validation will be performed by Cumulus, Nimbus, and Stratus FluxNodes, rather than relying on GPU mining.
Current Model
Traditional GPU mining is wasteful, with frequent overprovisioning leading to unused computing power. GPU mining consumes an unsustainable amount of electricity and wears out hardware faster.
Additionally, GPU mining poses centralization risks; mining pools accrue excessive hashrates that can be monopolized by miners with substantial resources. Lastly, the work miners currently perform doesn’t produce outcomes that end users can directly consume, unlike FluxNodes, which provide compute, storage, and deployment orchestration.
New Model
This soft fork will introduce PoUW v2, a node-centric alternative to GPU mining, in which FluxNodes handle all block production and transaction validation. The FluxNode infrastructure currently runs the full ecosystem stack and meets the network benchmark requirements for hardware performance.
PoUW v2 will introduce deprecating mining pools that simplify architecture, remove potential points of failure, and eliminate payout intermediaries, ensuring that contributors are rewarded directly.
Block Times
With the soft fork, Flux block propagation times will drop from 2 minutes to 30 seconds, resulting in 4x as many blocks per day and about 3x as many payout opportunities. A shorter block time will enable faster app registration and termination, as well as faster reward cycles for node operators.
Block Rewards
The soft fork will also adjust block rewards; with 30-second block times, 14 FLUX per block will be distributed as follows:
- 1 FLUX to a Cumulus node
- 3.5 FLUX to a Nimbus node
- 9 FLUX to a Stratus node
- And 0.5 to an ecosystem development fund allocated to the Flux Foundation.
This shift in reward distribution ensures that one node from each tier is always paid for every block generated, creating a predictable rotation for operators rather than payoutsin open-ended queues.
Emissions
Block emissions, the speed at which new FLUX tokens enter circulation, will transition from an abrupt halving to a measured output. PoUW v2 will introduce a 10% annual inflation rate to block emissions defined by a specific block height: every 1,051,200 blocks.
This emission adjustment is deterministic; node operators can anticipate it and know that reductions occur on-chain at definitive heights, not through dates that require off-chain validation.
Lastly, alongside the change in block emissions, PoUW v2 introduces a new maximum supply cap of 560 million FLUX, maintaining the token’s deflationary properties.
Conclusion
PoUW v2 is a move away from wasteful GPU mining towards work that actually provides utility and serves the network. By moving block production and transaction validation to FluxNodes, reducing block time to 30 seconds, establishing a predictable payout rotation for node tiers, and implementing a 10% annual supply reduction with a new fixed supply cap, a smoother experience is ensured for everyone involved in the Flux ecosystem.
Node Operators and builders will benefit from consistently hitting benchmarks and faster transaction confirmations as PoUW v2 lays out a transparent path for how contributors are rewarded and how new FLUX tokens will enter circulation.
As the soft fork approaches, review your node tier requirements and keep an eye on the official upgrade instructions to ensure your hardware and machine configurations are up to date. PoUW v2 is designed to make Flux simpler, faster, and fairer, redirecting contributions from burning cycles to delivered utility. The future runs on Flux.
