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Frax (prev. FXS) serves as the scarce commodity asset and native gas token for the Fraxtal blockchain. It operates under a fixed emission schedule, with validator-based security planned for a future hardfork. The token features a burn engine and a tail emission structure that gradually reduces annual inflation to support ecosystem growth.
Frax serves as the scarce commodity asset for the Fraxtal blockchain. It functions as the native gas token on Fraxtal (following the North Star hardfork) and is intended to secure the network by running validators, a capability planned for a future hardfork. The token operates under a fixed, unchangeable emission schedule, making it the exclusive native monetary unit of the Fraxtal blockchain and its ecosystem.
Frax is not a governance token; rather, it acts as base money on Fraxtal. It is issued natively on the Fraxtal L1 blockchain, meaning it has no origin on Ethereum or other chains, though wrapped bridged variants exist. While external projects may utilize Frax for staking or governance within their own systems, the asset itself does not confer governance rights and remains the sole asset of the Fraxtal blockchain.
Within Frax Finance’s DeFi stack, Frax is used as a restakable asset to provide cryptoeconomic security and voting power for managing specific protocol parameters (e.g., veFRAX). These mechanisms are built on top of the Frax asset but do not alter its core utility. This mirrors how restaked ETH grants voting rights and security to a protocol without giving that protocol control over ETH’s supply or peg stability. Similarly, DeFi protocols using Frax for security do not control the Frax asset itself.
Commodity-like Properties
Frax Burn Engine (FBE)
The FBE permanently destroys a portion of Frax tokens, treating them as a consumptive commodity within the ecosystem. Current sources feeding the FBE include:
Additional contracts will be integrated as Fraxtal infrastructure develops. Projects aiming to contribute to the FBE can submit a pull request to add their contracts to the infrastructure list.
Tail Emission
FRAX follows a tail emission schedule aimed at sustainable growth. Per FIP-428, the token begins with an annual inflation rate of 8%, which drops by 1% each year until it hits a floor of 3% after 6 years. These controlled emissions fund community initiatives, Fraxtal ecosystem expansion, team growth, and the DAO treasury, ensuring continuous funding while gradually lowering inflation.