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Flare Network Will Burn 2.1B FLR to Support Ecosystem Health
Some 198 million FLR will be burned immediately with a further 66 million set to be burned monthly until January 2026.
The developer of Flare blockchain told CoinDesk on Friday that they will burn 2.1 billion FLR tokens to support ecosystem development and overall 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.
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The tranche of tokens that are scheduled to be burned had been allocated to Flare’s early backers. These tokens will no longer be distributed after Flare reaches an agreement with these entities on how the first Flare Improvement Proposal, FIP.01, should affect token allocations to equity shareholders.
Some 198 million FLR will be burned immediately with a further 66 million set to be burned monthly until January 2026.
At the time of writing, FLR was trading at $0.0094. Based on current prices the total number of tokens burned will have a value of around $20 million.
“We are very happy to have reached an agreement with our shareholders and thank them for their support,” Hugo Philion, CEO and co-founder of Flare, said in a statement. “Without this burn, the investors would be able to claim approximately 3x their original allocation through the FlareDrops, unfairly diluting community holdings.”
FIP.01 was approved by the Flare community in January with 94% in favor.
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