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- Ripple’s partner Flare Network has declared its intention to permanently remove 2 percent of its total token supply to support the ecosystem.
- This decision would remove the dilution of community token holdings and ensure that new users join the network successfully.
Ripple partner Flare Network has announced that it is taking initiatives to permanently remove 2.1 billion FLR tokens from circulation. This represents 2 percent of the total Flair supply.
According to the report, the move is to support the overall health of the network and improve the ecosystem. On top of that, it will remove the dilution of community token holdings as well as the increasing incentives for new users to join the network. For now, the batch of tokens in line to be burnt have been handed over to the early backers of Flare. This implies that once the network reaches an agreement with the entities on the first Flare Improvement Proposal, FIP.01, and how it will affect token allocation to equity holders, the asset will no longer be distributed.
Hugo Philion, CEO and co-founder of Flare, spoke about this:
We are very happy to have reached an agreement with our shareholders and thank them for their support. Without this burn, the investors would be able to claim approximately 3x their original allocation through the FlareDrops, unfairly diluting community holdings.
The report further discloses that 198 million FLR would be burnt immediately. After this, 66 million FLR would be burnt monthly until January 2026.
More on Flare Network’s Partnerships
Recently, Flare Network announced a strategic partnership with a group of developers working on decentralized solutions and blockchain projects, Oracle Daemon. David Pangerl, CEO and founder of Oracle Daemon commented on this:
We have been building on Flare from the start, and with this collaboration, we will develop several important new tools to benefit the growing network.
The collaboration was meant for Oracle Daemon developers to create auto-claiming executors to enhance the token-claiming process. Also, they were to develop and advance data provider analytics tools designed for data providers.
I’m most excited about the advanced data provider analytics. Flare is the only blockchain focused on giving developers access to quality data at scale, so whatever we can do to support and optimize the data provision process will be beneficial for the whole network.
Finally, they were to ensure that the multi-wallet management tool is enhanced for users to view and manage funds across multiple wallets.
As of press time, Flare had a neutral market sentiment and was trading at $0.009282. In the last seven days, the asset has fallen by 13 percent. In the last 24 hours, Flare has declined by 2.7 percent.
Flare has partnered with Rationarium, an enterprise software provider to ensure that a full-stack ERP solution is implemented for Web 3.0. In February this year, the first 36 FlareDrop Distributions were announced after a 93 percent majority approved the decision. The initial distribution was said to have happened on January 9, 2023, during the Flare Token Distribution Event.
FLR currently has a 24 trading volume of $3,980,154 and a market cap of $235,355,187.
