Flare, a data-focused blockchain, has said that it would burn 2.1 billion FLR tokens to promote ecosystem health. A permanent removal of more than 2% of FLR’s whole supply would prevent the dilution of community token holdings and boost the incentives for new users to join the network.
Early supporters of Flare received the portion of tokens that are set to be burnt. After Flare and these parties established an understanding about how the first Flare Improvement Proposal, FIP.01, should impact token distributions to equity owners, these tokens will no longer be delivered.
A total of 198,880,170.19 FLR will be burnt right now, and another 66,293,390.06 FLR will be burned each month until the FlareDrop procedure is finished in January 2026. Backers will now only get a portion of their initial allotment due to the multi-year burn. The supporters received these remaining tokens 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.”
The community allocation will increase from 58.3% to 59.6% in Flare’s network tokenomics to reflect the adjustments. 94% of the Flare community voted in favor of FIP.01 in January. The notion was created to encourage broader network engagement from connected communities and to open up access to token distribution.
All Wrapped FLR holders will split the 24.2B tokens that were allotted to the public token distribution when FIP.01 was approved over the course of 36 monthly FlareDrops over a three-year period. On October 13, the eighth FlareDrop will be ready for claim. Seven FlareDrops have already been carried out.