The first layer oracle network – Flare – is set to burn 2.1 billion FLR tokens in an effort to support the health of the ecosystem. This number represents approximately 40% of investors’ original token allocation.
After permanently removing more than 2% of FLR’s total supply from circulation, the developers behind the network expect to prevent dilution of the community’s token holdings while increasing incentives for new users to join.
Burn FLR code
According to the official announcement shared with CryptoPotatoThe tokens scheduled to be burned were initially allocated to early Flare backers. After an agreement has been reached between Flare and these entities on how Flare’s first improvement proposal, FIP.01, will impact token allocations to equity shareholders, these tokens will no longer be distributed.
A total of 198,880,170.19 FLR tokens will be burned immediately, with an additional 66,293,390.06 to be burned on a monthly basis until January 2026, when the FlareDrop process ends. Due to the multi-year burn schedule, backers will now receive a reduced portion of their initial allotment.
These remaining tokens were presented to backers earlier this week. Commenting on the latest developments, Flare CEO and co-founder Hugo Philion said:
“We are very pleased to have reached an agreement with our shareholders and thank them for their support. It is true that investors’ token allocations should also be affected by the changes implemented in FIP.01. Without this burn, investors will be able to claim approximately 3 times their original allocation through FlareDrops , which leads to the unfair weakening of community property.
Following the news, FLR posted modest gains of around 3% over the past day, bringing the token’s price to $0.0092.
A new way to distribute FlareDrop
Flare began airdropping FLR across several major exchanges, such as Binance, OKX, Kraken, Bithumb, UpBit, Kucoin, and BitBank, on January 9th. This event marked one of the largest token distributions in cryptocurrency history during that period.
However, after the initial 15% distribution was completed, it was decided to instead share the remaining 85% by all encapsulated FLR holders, following approval by FIP.01, which received an overwhelming 94% approval rate from the Flare community.
The main goal of the proposal is to expand access to token distribution and support greater network participation from connected communities.
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