Flare Tokenomics Update, Supporters Commit to Increasing Ecosystem Investment

The Flare blockchain has recently performed impressively, with its native Token FLR increasing by over 100% in the past month. On February 23, Flare announced its latest tokenomics plan, revealing new agreements with some early supporters. These supporters voluntarily extended the Token vesting period from 2024 to the first quarter of 2026 and agreed to limit the Token sale volume to no more than 0.5% of the 30-day average trading volume.

To promote the sustainable growth of the ecosystem and incentivize developers, supporters have also committed to reinvesting at least 50% of the token sale proceeds into Flare ecosystem projects over the next two years. Based on the current market value, this could bring up to $47 million in reinvestment to the ecosystem. This initiative is expected to alleviate the excess liquidity of FLR Token, increase the influx of funds into DeFi protocols, and provide new investment momentum for ecosystem projects.

The Evolution of Flare Tokenomics

Flare initially completed an airdrop snapshot for Ripple holders in December 2020. As the project expanded, Flare gradually transformed into a decentralized data acquisition optimization smart contract platform aimed at meeting the data application needs of most blockchains. In November 2022, Flare released a new tokenomics plan and the FIP.01 proposal, which outlined the token distribution plan.

According to FIP.01, the publicly issued 28,524,921,372 FLR tokens are divided into two parts: 15% (4,278,738,206 tokens) are immediately distributed to airdrop recipients, and the remaining 85% will be distributed through FlareDrop over 36 months.

In the latest agreement, early investors agreed to the following key terms:

1. Extend the Token vesting period to the first quarter of 2026.
2. The average daily sale of FLR is restricted to no more than 0.5%.
3. Reinvest 50% of the token sale proceeds into the Flare ecosystem
4. Accept comprehensive supervision and accountability system

These measures ensure that early investors will still receive the originally planned 2% of the Token supply, but the initial allocation has been reduced by 68%, and the vesting period has been significantly extended. This demonstrates the founding team's alignment with community interests and their commitment to responsibly supporting the development of the Flare network.

The reinvestment plan will support multiple ecological projects, including lending protocols, decentralized exchanges, automated market makers, synthetic assets, cross-chain bridges, and native stablecoins.

In addition, another group of supporters had previously agreed to burn approximately 2.1 billion FLR, of which about 400 million have been burned so far, and in the future, 66 million will be burned each month until January 2026. Currently, all Flare supporters will receive a total of 3,100,811,195 FLR, slightly above 3% of the initial total supply.

These measures not only help stabilize Token prices and increase market transparency, but also enhance community confidence, encourage long-term participation, and promote the sustainable development of the project.

Flare Network Functionality Continues to Expand

Flare is committed to becoming an EVM smart contract platform that supports the next generation of decentralized applications. Currently, its ecosystem has over 150 partners covering multiple fields, including NFTs, DeFi, and the metaverse.

In 2023, Flare achieved important milestones such as token distribution, listing on major exchanges, and the approval of the FIP.01 proposal. Currently, Flare has 435,000 wallets, over 10,000 active users, and more than 5 million token holders. 3 billion FLR are staked to 82 validators, with 76% of the token supply participating in the ecosystem.

In 2024, Flare will launch multiple new features:

• FTSO expansion supports 1000 data sequences
• Flare data connector enables cross-chain data access
• The FAssets interoperability application will be launched soon.
• LayerCake bridging protocol connects to other smart contract systems

Flare has a solid foundation in technical construction. The FSP protocol optimizes network integration, FAsset expands liquidity for non-smart contract chains, FTSO provides stable oracle services, and LayerCake ensures cross-chain security.

As a Layer 1 public chain of multi-chain solutions, with the development of the community foundation and increased investment from early supporters, the Flare ecosystem is expected to continue to innovate and develop, with promising prospects for the future.