The creators of the Flare blockchain recently declared their intention to burn 2.1 billion FLR coins in order to promote ecosystem growth and general well-being. By permanently removing more than 2% of FLR’s total supply from circulation, community token holdings won’t be diluted and there will be more motivation for new users to join the network.
Early backers of Flare were given access to the tranche of tokens that will be burned. After Flare and these parties agree on how the first Flare Improvement Proposal, FIP.01, should impact token distribution to equity shareholders, these tokens will no longer be delivered.
A total of 198 million FLR will be burned right away, and an additional 66 million will be burned each month until January 2026.
FLR’s market price at the time of writing was $0.0094. The entire worth of all the tokens burned, based on current values, will be close to $20 million.
Hugo Philion, the CEO and co-founder of Flare, said in a statement, “We are very happy to have reached an agreement with our shareholders and thank them for their support.” “The investors would be unfairly diluting community holdings by being able to claim approximately three times their original allocation through the FlareDrops without this burn.” FIP.01 was approved by the Flare community