Flare Tokenomics Update and Ecosystem Development

Recently, the price of Flare Token has continued to rise, with an increase of over 100% within a month. On February 23, Flare released an updated tokenomics plan and announced new agreements with some early supporters. These supporters voluntarily extended the token vesting period to the first quarter of 2026 and agreed to restrict the number of tokens sold.

To promote the sustainable growth of the ecosystem, supporters have committed to reinvesting at least 50% of the token sale proceeds back into Flare ecosystem projects over the next two years. Based on current market capitalization estimates, this could bring approximately $47 million in potential reinvestment to the ecosystem. This initiative is expected to reduce the excess liquidity of FLR tokens, increase the capital inflow into Flare DeFi protocols, and provide new investments for ecosystem projects.

Flare Latest Tokenomics

Flare initially completed airdrop snapshots for Ripple holders in December 2020. Subsequently, Flare gradually expanded the project's scale, aiming to establish a decentralized data acquisition optimized smart contract platform to meet the needs of most blockchain data applications. In November 2022, Flare released the tokenomics proposal and introduced the FIP.01 proposal.

According to the FIP.01 proposal, the initial allocation method of FLR Token remains unchanged, with a total supply of approximately 28.5 billion coins. Of this, 15% will be distributed immediately to airdrop recipients, and the remaining 85% will be distributed in the form of FlareDrop over a period of 36 months.

The latest protocol restricts token allocation and sales for early investors:

1. Extend the Token vesting period to the first quarter of 2026.
2. The restriction on the sale quantity of FLR shall not exceed 0.5% of the average daily trading volume over the past 30 days.
3. Commit to reinvesting 50% of the Token sale proceeds into the Flare ecosystem.
4. Accept comprehensive supervision and accountability mechanisms

These measures align the interests of early investors more closely with the development of the ecological network, helping to reduce market volatility and encourage long-term participation.

The reinvestment plan will support various Flare ecosystem projects, including lending protocols, decentralized exchanges, automated market maker protocols, synthetic assets, cross-chain bridges, and native stablecoin minting.

In addition, another group of supporters had previously agreed to burn approximately 2.1 billion FLR, and about 400 million have been burned so far. In the future, they will continue to burn 66 million each month until January 2026. Ultimately, the total amount of FLR that all Flare supporters will receive is slightly more than 3% of the initial supply.

Continuous Expansion of Flare Network's Functionality and Usability

Flare aims to address the insufficient off-chain data access issues faced by the blockchain industry, providing highly scalable, low-cost, decentralized, and low-latency solutions for emerging applications. Currently, the Flare ecosystem has over 150 partners, covering multiple fields such as NFT, DeFi, and the metaverse.

In 2023, Flare made significant progress in governance, currently having 435,000 wallets, with over 10,000 active users and more than 5 million token holders. 3 billion FLR have been staked to 82 validators, with 76% of the FLR supply participating in the ecosystem.

In 2024, Flare plans to launch all scheduled protocols and expand network functionality. The time series oracle (FTSO) will support 1,000 price and data series. The Flare data connector will allow smart contracts to access external data sources. The FAssets and LayerCake bridging protocols will open the door for Flare to other smart contract systems.

As a Layer 1 public chain that provides multi-chain solutions, Flare has a solid foundation in its technical construction. With the development of the community foundation and early supporters increasing their investment, the Flare ecosystem is expected to continue to innovate and grow.