Flow controls: auto-management

To peduncle speculation and instead promote utility, there is a feature called “Flow Controls”. These flow controls manage the amount of NFC that can be converted to $LYNQ or transferred to other users (fans). In terms of how the flow controls work; they are based on token bucket algorithms5 and are designed to enforce per NFC<>value, per user, rate limits while allowing for bursts in activity.

Creators will notice these flow controls in the Convert, Redeem, and Send interfaces. In each, users will see an "up to" amount that will be less than their total balance when they are subject to limits applied by the flow control system. Concrete the flow controls include:

A configurable maximum of 5% of the total supply of a creator coin. Accrual towards that maximum allowance over 30 days.

At any given time, a user has an allowance limiting the amount of a creator coin that they can sell or transfer based on the above rules. Each time a sale or transfer is completed, that amount is deducted from the user's available allowance for that coin and accrual up to the maximum allowance continues. Additionally, there are configurable exemptions that allow for unrestricted transfers to and from specific addresses for each coin. These exemptions are designed to allow commerce and donations to happen without restriction.

The flow control calculation tracks the last time you (a creator or fan) performed an action and what your allowance was at the time of that action. When you return in the future to perform another action, your current allowance is calculated based on the time that has passed since your last action, your allowance at that time, and the current circulating supply of coins. This allowance is what the flow control will allow you to send or convert at this time. As previously described, there are instances where exemptions, such as “sends” to creators in their own coin, are not subject to this allowance.