State Of Flock Q2 2025

What Happened

Protocol updates included the launch of gmFLOCK, AI Arena v2 with Delegation Pools, and the FLock OFF subnet on Bittensor.

Partnerships and integrations during Q2 included Base’s Model Context Protocol, Alibaba Cloud’s Qwen, Infini, SpoonOS, and DIMO + Beacon.

In Q2 2025, FLock introduced gmFLOCK as the staking unit for AI Arena participation. gmFLOCK is a non-transferable token generated by locking FLOCK for a user-selected period of up to 365 days, with longer lockups receiving higher multipliers. Training Nodes, Validators, and Delegators must now convert FLOCK into gmFLOCK to participate and earn rewards. The transition away from the prior staking model contributed to a sharp decline in the overall staking ratio, as previously staked tokens had to be re-locked under the new system.

FLOCK’s staking ratio declined in Q2 2025, falling from 41% at the end of Q1 to 33% by quarter-end. The ratio peaked at 53% on May 15 before a sharp correction in late May brought it back to the low-30% range, where it stabilized through June. The shift reflected weaker staking incentives, and the introduction of gmFLOCK in late April, which added an extra conversion step for participation. Staking rewards decreased from $2.7 million in Q1 to $1.9 million in Q2, reducing the financial appeal of remaining locked. At the same time, FLOCK’s price rose 167% over the quarter, likely encouraging some holders to unstake to realize gains or provide liquidity. The decline in staking increased the amount of liquid supply available in the market, amplifying the impact of price appreciation on market capitalization.

Market Context

Circulating market capitalization increased 235% QoQ to $30 million, while FLOCK’s price rose 167% from $0.06 to $0.15.

FLock.io (FLOCK) is a decentralized AI development platform that combines blockchain infrastructure with privacy-preserving federated learning. Its architecture is built around three core components: AI Arena, where models are collaboratively trained; Moonbase, a marketplace for publishing and using models; and FL Alliance, a federated learning framework that coordinates contributors with onchain incentives.

Market Capitalization

FLOCK’s circulating market capitalization increased 235% in Q2 2025, rising from $9 million to $30 million, while the token price grew 167%, from $0.06 to $0.15. The larger increase in market capitalization relative to price is due to circulating supply expanding over the quarter through staking rewards, ecosystem incentives, or scheduled token releases. The addition of Uniswap liquidity on Base also broadened market accessibility, increasing the share of tokens actively circulating. As a result, both higher valuation per token and a larger circulating supply contributed to the overall market cap growth.

Why It Matters

Key Insights

Training and delegator nodes increased in Q2 2025, with training nodes up 29% QoQ to 185 and delegators up 21% to 1,280. Validators grew 17% QoQ to 247, while training and validation submissions each declined 52% QoQ.

Details

FLock was featured in CB Insights’ AI 100 list and received the IEEE Global Blockchain Conference Best Application Award.

Primer

In traditional federated learning, models are sent to local devices for training, and only the updated parameters (not the raw data) are shared back. This preserves privacy but often depends on centralized servers and leaves challenges around incentives and security. FLock addresses these limitations by using blockchain for decentralized coordination, verifiable governance, and transparent incentives, allowing communities to propose, train, and deploy AI models in a trust-minimized way.

This design supports FLock’s broader vision: to democratize the AI lifecycle from data sourcing and model design to training, validation, and deployment. The platform is anchored in ongoing academic research, with multiple peer-reviewed publications in venues such as IEEE journals and NeurIPS workshops. For a full primer on FLock, refer to our Initiation of Coverage report.

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Key Metrics

Financial Overview

Staking Ratio

Previously, staking FLOCK was required for all participants in AI Arena and was essential for role eligibility, task access, and incentive alignment. Participants in active tasks fell into one of three roles:

Training Nodes staked FLOCK to develop or fine-tune models using private data, earning rewards based on the quality and ranking of their submissions.

Validators staked FLOCK to evaluate models using standardized datasets, with validation frequency influenced by stake and subject to rate-limiting.

Delegators staked FLOCK on behalf of Training Nodes or Validators and received a share of rewards, with payouts time-weighted and dependent on performance and reward-sharing ratios.

Staked tokens functioned as collateral to discourage dishonest behavior. Smart contracts automatically distributed rewards, and slashing penalties applied for protocol violations.

Network Overview