Arthur Hayes, co-founder of BitMEX, has released further details on the Flop Network, a proposed decentralized marketplace for artificial intelligence computing power. In an essay titled "The Book of Genesis," published around August 19, 2026, Hayes described the project’s economic model, token distribution, and technical approach while framing the narrative in biblical terms.

The Flop Network aims to create a market where computing resources are priced according to actual floating-point operations, or FLOPs, rather than the varying token-based pricing used by current AI providers. The native token, FLOP, would serve as the settlement currency connecting AI agents, miners, and validators.

Core Design of the Flop Network

Under the proposed system, AI agents would purchase computing power and network services using FLOP tokens. Miners would supply internet-connected hardware to process inference requests and earn both block rewards and inference fees. Validators would verify that the requested work was completed correctly and help maintain network security.

Hayes named the mining mechanism Proof of Useful Inference, or PoUI. Unlike traditional proof-of-work systems that focus on hash calculations, this approach would reward miners for performing useful AI computations selected by the customer. The token itself is described as representing a direct claim on computing power, intended to establish a consistent spot price for FLOPs across different models, hardware, and locations.

Hayes argued that existing AI pricing models make cost comparisons difficult because each provider defines and charges for tokens differently. He positioned FLOP as a standardized unit that could function as “food” for autonomous AI agents, enabling them to access compute without relying solely on traditional payment systems. The essay also noted that agents would require decentralized storage for persistent memory to operate independently of centralized providers.

Token Distribution and Fair Launch Approach

Hayes stated that he has self-funded the Flop Labs development team, eliminating the need for a token presale or venture capital allocations. The project is planned as a 100% fair launch. Roughly 20% of the total FLOP supply is designated for testnet participants and other network contributors, to be distributed over a 10-year period.

A sizable airdrop is expected in the fourth quarter of 2026. The network’s genesis block is targeted for the first quarter of 2027. Hayes has indicated that the allocation is intended to reward those who contribute useful work to the network, though specific eligibility criteria, total token supply, and precise release schedules have not yet been disclosed.

Pending Documentation and Next Steps

A formal whitepaper has not been released. Hayes noted that the team continues discussions with stakeholders to finalize both the technical architecture and token economics. A simplified tokenomics infographic is expected in the near term, with a follow-up essay planned to address the creation of a spot market for compute pricing.

Key open questions remain, including the underlying blockchain, the exact method for validating nondeterministic AI outputs, security audits, and how ordinary hardware will compete with data-center equipment. The project website lists flop.finance as a resource for further information on participation through mining, validation, or community roles.

Timeline details released so far include the initial announcement of Hayes leading Flop Labs on August 18, 2026, confirmation that the whitepaper was still in progress on August 19, and the publication of the Genesis essay on August 20. The airdrop and genesis block targets remain the primary near-term milestones for potential participants.

The Flop Network proposal seeks to address what Hayes identifies as a gap in standardized, decentralized access to computing power for the emerging AI agent economy. Full operational details will depend on the forthcoming technical documentation and finalized tokenomics.