# Utility

The $FLC token is the native currency that powers the Floor Protocol ecosystem. It unlocks and fuels customized platform utilities for all users.

<figure><img src="https://4151815585-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fv5eIM8bG4ebEPYdTVefW%2Fuploads%2Ff10WdqFTivm274BJdgeX%2FFLC_token_graphics_new.jpg?alt=media&#x26;token=768e080a-2101-4779-8d0a-c3272a8292f7" alt=""><figcaption><p>Contract Address : 0x102c776DDB30C754dEd4fDcC77A19230A60D4e4f</p></figcaption></figure>

**Enabling Safeboxes**

By staking $FLC in their Flooring Account, users can create personalized Safeboxes to reserve NFTs for custom time periods. Higher $FLC stakes allow longer max durations and greater benefits.

**Unlocking VIP Perks**

Staking $FLC also determines a user's VIP status tier. Higher tiers unlock exclusive perks tailored to strategies from swift cash-outs to long-term stability and collector retention.\
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**Incentivizing Liquidity Providers**

The protocol rewards liquidity providers who add to $FLC and μToken exchange pools with $FLC mining rewards proportional to their share of the pool. These incentives robust liquidity vital for ecosystem growth.

**Managing the Treasury Reserve**

The protocol treasury accumulates a portion of all $FLC expenditures like fees and bids. These reserves help fund ongoing development, provide collateral, and maintain $FLC value stability. \
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The treasury may also provide Eco-system contributor grants to worthy contributors and projects.

**Maintaining Protocol Stability**

Random Vault redemptions normally have no fees. But if reserves dip too low, a [redemption fees](https://docs.fp.io/features/nft-fractionalization/vault/nft-redemption/dynamic-fees) in $FLC applies. This disincentivizes excessive withdrawals during periods of volatility.

**Facilitating Events**&#x20;

$FLC is required to initiate protocol events like auctions and raffles. As the platform's native currency, $FLC also serves as a discounted bidding option during these events.

* **Auctions:** Users can utilize $FLC tokens to place their bids on a wide selection of exclusive NFTs.
* **\[Coming Soon]**
* **\[Coming Soon]**

In summary, $FLC constructs Floor Protocol's economic framework by incentivizing beneficial platform interactions. This enables a dynamic, utility-driven marketplace.