Flare Network has decided to destroy 2.1 billion FLR tokens to strengthen its ecosystem and ensure fairness. This initiative aims to protect the community’s interests and represents a significant milestone in the evolution of Flare Network.
Flare Network has taken a pivotal step in bolstering the ecosystem’s vitality by burning 2.1 billion FLR tokens, or more than 2% of its total supply. Removing these tokens from circulation prevents any unwarranted dilution of community token holdings and encourages new users to join the network.
In the meantime, according to the announcement, Flare will promptly burn 198 million FLR and continue to burn 66 million per month until January 2026.
Hugo Philion, CEO and Co-Founder of Flare was pleased with this strategic decision and emphasized its significance. He has praised the agreement reached with the initial investors in the initiative.
Meanwhile, Philion thanks them for their support and emphasizes the need for token distribution to be equitable. He added that without the token destruction, early investors could have obtained significantly more tokens through FlareDrops, which could have diminished the community’s overall holdings.
Philion’s words emphasize the commitment to sustaining a balanced and equitable token distribution, which will ultimately benefit the Flare Network community.
Impact on Token Economics and Network Membership
This considerable token burn is not merely a symbolic gesture but a transformative action that alters the tokenomics of Flare network. Notably, the move intends to increase the community’s allocation from 58.3% to 59.6%, thereby enhancing the decentralized nature of the network.
In January, 94% of the community supported FIP.01, the Flare Improvement Proposal responsible for these modifications. This proposal seeks to increase access to token distribution and participation across interconnected communities.
Following the principles of fairness and community-oriented growth, early backers will receive a fraction of their initial allocation due to this strategic maneuver.
In response to the news, the price of Flare increased 2.06% to $0.00933, while its 24-hour volume increased 94.81% to $5.24 million.
