News
Flare Network reaches milestone with over 1 billion FLR tokens burned
Flare Network has surpassed 1 billion FLR tokens burned, improving ecosystem health with a 2.1 billion FLR consumption plan, reducing dilution and increasing incentives.
The Flare Network team burned 66 million FLR tokens today, essentially bringing the total amount of FLR burned to over 1 billion. This event is part of an ongoing strategy to improve the health of its ecosystem by reducing the supply of tokens.
Another 66 million $FLR burned – exceeding the total burn limit of 1B 🔥
Our multi-year commitment strengthens the community (increasing their share to 59.6% by January 2026)
While $FLR continues to burn for unclaimed commissions and rewards.
Viex tx: https://t.co/DPI1heAHgl pic.twitter.com/WNpN5hUd7C
— Flare ☀️ (@FlareNetworks) May 8, 2024
FTSO.AU, previously an infrastructure provider on the Flare network attracted attention at the event, confirming in a post on X that the EVM-based Layer 1 blockchain is set to surpass a significant milestone by burning over 1 billion FLR tokens.
Continuous burning of Glow tokens
The Flare Networks team has actively pursued a deflationary token policy, burning through unclaimed rewards and transaction fees to reduce the circulating supply of FLR. This includes a sizable tranche of tokens originally allocated to early backers, which will not be distributed as planned.
Instead, these tokens are burned in line with Flare’s proposed enhancement, FIP.01, which impacts how token allocations to equity shareholders are handled.
After the latest burning exercise, the Flare Networks team has now incinerated 1,042,485,039 (1.042 billion) FLR through various means, including transaction fees and unclaimed FlareDrops.
1,042,485,039 $FLR were burned due to;
1. Transaction Fees.
2. Unclaimed FTSO and FlareDrop Rewards.
3. Token burn by early backers, for changes related to FIP.01🔥 https://t.co/uKqWlObcop 🔥 pic.twitter.com/s8KxqoK5Sp
— FTSO.AU ☀️ (@ftso_au) May 8, 2024
– Announcement –
THE programmed burning of 2.1 billion FLR tokens represents more than 2% of the total supply and almost 40% of the initial allocation to investors. By removing these tokens from circulation, Flare aims to decrease competition for future distributions and support the value of community holdings.
FLR market movements and community impact
Recent token burns have played a role in the financial metrics surrounding FLR. Despite a slight decline in prices over the past 24 hours, FLR has seen an overall price increase of 4.58% over the past week. Currently, Flare’s market capitalization stands at $1.12 billion with a circulating supply of 39 billion FLR tokens.
The previous incineration exercise occurred in February, when Flare Networks performed a substantial burn of 66.29 million FLR tokens. FLR tokens were worth $1.94 million based on February market rates. Like the most recent transaction, this burn was performed transparently, with transaction details shared publicly to emphasize accountability.
In addition to these burns, Flare has seen increased adoption, highlighted by its recent launch list on Bitvavo, the largest exchange in the Netherlands. This addition could help improve the visibility and accessibility of FLR, particularly within the European market.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
-Announcement-