Flare Announces 2.1B FLR Burn to Safeguard Community Holdings and Attract New Users

Flare Announces 2.1B FLR Burn to Safeguard Community Holdings and Attract New Users


Layer 1 Oracle network – Flare – is all set to burn 2.1 billion FLR tokens in a bid to support ecosystem health. This figure represents almost 40% of the original token allocation for investors.

After permanently removing more than 2% of FLR’s total supply from circulation, the developers behind the network expect to prevent the dilution of community token holdings while increasing incentives for new users to join

FLR Token Burn

According to the official announcement shared with CryptoPotato, the tokens slated for burning were initially earmarked for Flare’s early supporters. Following an agreement reached between Flare and these entities on how the first Flare Improvement Proposal, FIP.01, should affect token allocations to equity shareholders, these tokens will no longer be distributed.

A total of 198,880,170.19 FLR tokens will be immediately burnt, with an additional 66,293,390.06 set to be burned on a monthly basis until January 2026, when the FlareDrop process will conclude. Due to the multi-year burn schedule, backers will now receive a reduced portion of their initial allocation.

These remaining tokens were provided to the backers earlier this week. Commenting on the latest development, Flare CEO and co-founder Hugo Philion said,

“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.”

Following the news, FLR posted modest gains of nearly 3% over the past day, lifting the token’s price to $0.0092.

New Method for the FlareDrop Distribution

Flare initiated the airdrop of FLR across several major exchanges, such as Binance, OKX, Kraken, Bithumb, UpBit, Kucoin, and BitBank, on January 9th. The event marked one of the most large-scale token distributions in crypto history during that time.

However, after the initial 15% distribution was completed, the remaining 85% was decided to instead be shared by all holders of wrapped FLR, following the approval of FIP.01, which received an overwhelming 94% approval rate from the Flare community.

The main objective of the proposal is to expand access to token distribution and support greater network participation from connected communities.


Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.


Source link

Leave a Comment