Flare Takes Decisive Action: 2.1 Billion FLR Tokens to be Removed for Ecosystem Enhancement
Flare’s agreement with shareholders leads to a 2.1 billion token burn, preventing potential dilution and benefiting the entire community.
In a strategic move to strengthen its ecosystem, Flare, the distinguished blockchain for data, has unveiled plans to eliminate a whopping 2.1 billion FLR tokens from its supply. This initiative will permanently erase more than 2% of the total FLR supply from circulation, ensuring that community token values remain robust and offering a more enticing proposition for newcomers to the network.
Previously reserved for Flare’s initial supporters, these tokens have now been redirected for burning. This decision came after a collaborative agreement with these early backers on the implications of the Flare Improvement Proposal, FIP.01, particularly concerning token distributions to equity shareholders.
The burning mechanism is set in stages: an upfront elimination of 198,880,170.19 FLR, succeeded by a systematic monthly reduction of 66,293,390.06 FLR, culminating in January 2026. This phased burn means that original backers will only obtain a portion of their initial token share. These backers have already received the remaining tokens this week.
Reflecting on this pivotal move, Hugo Philion, Flare’s dynamic CEO and co-founder, stated, “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.”
In response to these developments, there will be a recalibration in Flare’s network tokenomics. The community’s token share is set to increase from 58.3% to a slightly higher 59.6%.
It’s worth noting that back in January, FIP.01 garnered immense support from the Flare community, with a staggering 94% approval rate. This proposal was envisioned to democratize token access and catalyze heightened participation from associated communities.
Following FIP.01’s green light, the 24.2B tokens set for public distribution are now being allocated among Wrapped FLR holders. This is being done over 36 monthly FlareDrops spanning three years. Seven FlareDrops have been rolled out, with the next one scheduled for October 13.
Positioned as a trailblazing blockchain for data, Flare is an EVM intelligent contract platform that pushes the boundaries of blockchain utility. With its unique integration of decentralized oracles, Flare stands alone in its optimization for decentralized data sourcing, covering a wide array of data types, from price time series to blockchain events and Web2 API data.
By facilitating developers with unparalleled access to a vast data repository in a trustless environment, Flare emerges as a pivotal utility layer in the blockchain sector, paving the way for innovative applications.