The Flare community has approved the first Flare Improvement Proposal with a 93% majority and a 17% total voter turnout. FIP.01 is designed to better align the public token distribution with the ambitions of the Foundation to address blockchain’s utility and interoperability issues. The remaining 85% of the token distribution, totaling 24.2B FLR, will now be shared proportionally among all holders of Wrapped Flare (WFLR), allowing anyone to participate.
Flare is an EVM-based Layer 1 aiming to make blockchain more useful by providing decentralized access to high-integrity data from other chains and the internet. Flare sees its role within the decentralized economy as powering connectivity, providing developers with the tools and the tech stack to build the next generation of interoperable dapps that will allow assets, information and liquidity to flow freely between all chains.
The previous version of Flare’s tokenomics, conceived 24 months ago, was designed to support the delivery of a single utility for a single blockchain. With Flare’s offering now larger than originally envisioned, adjustments were needed to the method of allocation and distribution of the remaining public tokens in order to better support the long term sustainability of the network.
Of the 100B genesis FLR tokens, 58.3B are destined for community hands, with 28.5B of these allocated to the direct public token distribution, also known as the FlareDrop Distribution. The first 15% of these public tokens, or 4.3B FLR, was successfully distributed on January 9 this year to wallets that held XRP during a snapshot completed in December 2020. Prior to FIP.01, the remaining 85% of these tokens were to be provided over 36 months to these same recipients.
Following the approval of FIP.01, the 36 monthly distributions will be made available on-chain, in a decentralized manner, to all wallets that hold Wrapped Flare (WFLR). Almost 700M FLR will be proportionally shared by WFLR holders each month, totalling 24.2B FLR over the three years.
The approved proposal delivers a range of benefits for the Flare ecosystem and community. It removes the reliance on centralized exchanges for future distributions. It also substantially decreases the monthly inflation of the network and caps maximum token emissions per year.
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