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Saturday, 25 May 2024

Flare to Burn 2.1 Billion FLR Tokens to Support Ecosystem Health

The blockchain for data, Flare, has announced that it will burn 2.1 billion FLR tokens to support ecosystem health. More than 2% of FLR’s total supply will be permanently removed from circulation, preventing dilution of community token holdings and increasing incentives for new users to join the network.

The tranche of tokens that’s scheduled to be burned had been allocated to Flare’s early backers. These tokens will no longer be distributed after Flare reached an agreement with these entities on how the first Flare Improvement Proposal, FIP.01, should affect token allocations to equity shareholders.

198,880,170.19 FLR will be burned immediately with a further 66,293,390.06 set to be burned monthly until January 2026, when the FlareDrop process completes. As a consequence of the multi-year burn, backers will now receive a fraction of their original allocation. These remaining tokens were provided to the backers earlier this week.

Hugo Philion, CEO & Co-Founder of Flare, commented: “We are very happy to have reached an agreement with our shareholders and thank them for their support. It is right that investor token allocations should also be affected by the changes implemented in FIP.01. Without this burn, the investors would be able to claim approximately 3x their original allocation through the FlareDrops, unfairly diluting community holdings.”

“The 2.1 billion tokens we will burn account for almost 40% of the original token allocation for investors. This will reduce competition for FlareDrops and reduce the dilution of holdings of all ecosystem participants. It’s great news for the community.”

Flare’s network tokenomics will be updated to reflect the changes, with the community allocation rising from 58.3% to 59.6%.

FIP.01 was approved by the Flare community in January with 94% in favor. The proposal was designed to broaden access to token distribution and support greater network participation from connected communities.

Following the approval of FIP.01, the 24.2B tokens allocated to the public token distribution are being shared by all holders of Wrapped FLR across 36 monthly FlareDrops over three years. Seven FlareDrops have been completed, with the eighth available to claim on October 13.

Jillian Godsil
Blockchain Advocate, Founder, Conference Chair, Women in Blockchain Advocate, Keynote Speaker, Crypto Journalist, Broadcaster, CEO, Writer, Homelessness Advocate, Former European Parliament Candidate, Law Changer, Mother, Choir Member, Hill Walker, Dreamer

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