Flare Network has released its tokenomics.
As we go deeper into the network’s first beta stage, which it projects to last for an estimated 6 to 9 months, Flare has released its tokenomics.
However, users will be disappointed to note that developers have shifted the distribution date again.
Flare Shifts Distribution Date
Flare Networks have shifted the distribution date for FLR tokens to around January 9, 2023, owing to a lack of exchange readiness. The network discloses this in an update to its Token Distribution Event (TDE) blog post.
It is worth noting that XRP holders have been anticipating the Flare Networks airdrop for over two years, following a wallet screenshot to reward holders as of December 2020. Notably, as reported by The Crypto Basic, the TDE was set for October 24 through November 6, provided the network saw a sufficient number of validators to become decentralized. Flare Networks set this threshold at 66% of the validator power independent of the Flare Foundation.
On October 28, Flare disclosed that the network was now decentralized, as 80% of the validator power was independent of the Flare Foundation, noting that distribution would start at a date agreed upon with exchange partners. The latest delay will allow for the necessary security and compliance reviews according to the network while giving exchanges several weeks of proof of the network’s decentralization.
Notably, Flare expects exchanges to be ready at the end of the month but projects January next year as a preferred date due to end-of-the-year celebrations.
As users continue to await the distribution of their tokens, Flare, in a tweet on Friday, revealed its tokenomics.
Total FLR tokens at Token Distribution Event: 100B
– Community allocation: 58.3B
– Team, advisors & backers: 19.2B
– Flare entities responsible for ecosystem and project investment: 22.5B
For more detail: https://t.co/WCHdNAyoSS pic.twitter.com/tyfrIhqZjE
— Flare ☀️ (@FlareNetworks) November 4, 2022
The network released two versions pending a vote on the first Flare Improvement Proposal (FIP.01). Notably, the critical difference between both is how the network distributes user rewards.
In the original version, XRP holders, as of the time of the screenshot, receive 28.5 billion of the total 100 billion FLR supply directly over three years.
However, in the new version, should the FIP.01 pass the governance vote, these XRP holders will only receive 15% of the 28.5 billion, amounting to about 4,278,738,206 FLR via the TDE. It will distribute the remaining 85% or 24,246,183,166 FLR over three years to users who stake their tokens.
While users have raised concerns about the reduced airdrop rewards, Flare networks have highlighted some of the proposal’s benefits:
- Distribution will be independent of exchange readiness.
- Inflation will reduce as the network plans to calculate it based on circulating supply instead of the initial 10% annually of the total supply.
- New users get a chance to get a share of the distribution.
Tokenomics breakdown per original version:
- Community allocation (58.3 billion FLR or 58.3%)
- Flare team, backers, and advisers (19.2 billion FLR or 19.2%)
- Entities for product development and investment (22.5 billion FLR or 22.5%)
Tokenomics break down in the Genesis month if FIP.01 passes after the TDE:
- Airdrop 35.7%
- Flare Foundation non-voting 16.2%
- Flare VC Fund non-voting 12.5%
- Flare Networks Limited 18.8%
- Advisors 2.5%
- Future team 3.5%
- Rest of the team, 1.9%
- Founding team 8.8%
Flare network discloses that voting on the proposal will happen latest by January 14, 2023, after 66% of the tokens eligible for the vote have reached recipients.
The network asserts that there will be a one-week notice period immediately after it reaches the set threshold, followed by a week of voting. As highlighted, Flare Foundation and Flare VC Fund will not be allowed to vote. Notably, a simple majority is required for the vote to pass.
Flare Networks believes that the changes proposed in FIP.01 are necessary for the network’s now broader vision.