Flux (FLUX)

Intermediate
Updated Jul 8, 2026

What Is Flux?

Flux is a decentralized cloud infrastructure protocol that provides an alternative to centralized cloud services. It offers computing, storage, and hosting capabilities distributed across a global network of community-operated servers called FluxNodes.

The platform was originally derived as a fork of Bitcoin and has since evolved into a comprehensive Web3 infrastructure platform. In 2025, InFlux Technologies released ArcaneOS, a major security upgrade to FluxOS that introduced a secure live installer and an attestation system verifying OS integrity, monitoring activity, and enforcing runtime protections.

How Does Flux Work?

Flux operates on a distributed network of FluxNodes, which provide computing power, storage, and hosting services. Developers can deploy DApps, APIs, and other services directly onto these nodes. The network is secured by a Proof-of-Useful-Work v2 (PoUW v2) consensus algorithm, where nodes validate blocks by running real computational workloads such as hosting applications or AI processes. This replaced the previous proof-of-work mechanism in October 2025.

Under PoUW v2, traditional mining was eliminated entirely. Only nodes providing real computational work can validate blocks and earn rewards. Block time was reduced from 2 minutes to 30 seconds. The network has a fixed 10% annual inflation rate for block emissions and a maximum supply of 560 million FLUX.

Node operators lock FLUX as collateral to participate and earn FLUX rewards for keeping their nodes online and contributing resources. FluxNodes are organized into three tiers based on hardware capacity and collateral requirements:

  • Cumulus: entry-level tier requiring 1,000 FLUX collateral, 2 CPU cores, 8 GB RAM, and 220 GB storage.

  • Nimbus: mid-tier with increased compute capacity, requiring higher collateral and hardware specs.

  • Stratus: high-performance tier requiring up to 40,000 FLUX, 8 CPU cores, 64 GB RAM, and 880 GB storage.

Operators running higher-tier nodes earn proportionally greater rewards. All nodes must pass a benchmark test before joining the network, and nodes that drop below the required availability threshold are deactivated by the protocol.

FluxEdge

FluxEdge is a peer-to-peer decentralized marketplace for GPUs and computing resources. It completed alpha testing in 2025 and supports private container deployment and multi-machine selection for renting multiple GPUs. FluxEdge expanded Flux's original DApp hosting use case to include AI and machine learning workloads, and the platform has partnered with projects like ThermAI to integrate AI-centric nodes that repurpose waste heat.

Fusion bridge

Flux also features a cross-chain bridge called Fusion, which enables FLUX tokens to move across multiple blockchains. This expands utility beyond the native network. The Fusion bridge allows FLUX to operate as smart contracts on other chains, broadening interoperability.

Key Features

Cloud interface

CLOUD is the consumer-facing interface for FluxCloud. Through this dashboard, users can access products such as WordPress hosting and FluxDrive, a decentralized storage service. The interface is designed for accessibility and is regularly updated as new services are added.

Home dashboard

HOME is the developer-focused dashboard for FluxCloud. It provides comprehensive access to advanced tools and backend infrastructure features, making it suited to technical users and node operators who need fine-grained control over their deployments.

What Is FLUX?

FLUX is the native token of the Flux ecosystem. Its tokenomics are designed around three core functions: collateral for node operators, payment for network services, and governance participation.

Node operators earn FLUX rewards for keeping their nodes online and contributing resources. The network follows a Bitcoin-like halving schedule. On August 6, 2025, Flux completed its latest halving, reducing block rewards from 37.5 to 18.75 FLUX.

Token holders can participate in protocol governance through XDAO, Flux's decentralized autonomous organization, by submitting and voting on proposals related to protocol upgrades, fee structures, and ecosystem development. FLUX functions as a governance token within this system.

FAQ

What is Flux crypto used for?

FLUX is used as collateral by node operators to participate in the network, as payment for services on FluxCloud, and as a governance token through the XDAO decentralized autonomous organization. Node operators also earn FLUX as rewards for their contributions.

How do FluxNodes work?

FluxNodes are community-operated servers that provide computing, storage, and hosting capacity to the Flux network. Operators must lock a set amount of FLUX as collateral depending on the tier they join (Cumulus, Nimbus, or Stratus). In return, they earn FLUX rewards proportional to their uptime and contribution level.

Is Flux a DePIN project?

Yes. Flux is categorized as a DePIN (decentralized physical infrastructure network) project because it incentivizes real-world hardware operators to contribute computing and storage capacity in exchange for token rewards. This model is similar to other DePIN protocols that decentralize wireless networks, storage, or compute.

What consensus mechanism does Flux use?

Flux uses Proof-of-Useful-Work v2 (PoUW v2), a consensus mechanism where nodes validate blocks by running real computational workloads such as hosting applications or AI processes. This replaced the previous proof-of-work (PoW) mechanism in October 2025. Unlike traditional PoW, where miners solve cryptographic puzzles, PoUW v2 ties block validation directly to useful computational output.

What blockchains does FLUX support?

FLUX is native to the Flux blockchain but can be bridged to multiple other chains via the Fusion cross-chain bridge. This allows holders to use FLUX across different blockchain ecosystems without being confined to a single network.