Flare blockchain developers will burn 2% of the total FLR token supply.
198,880,170 FLR will be burned immediately, with an additional 66,293,390 being burned monthly until January 2026.
The Flare data transmission blockchain team will burn 2.1 billion FLR tokens to support ecosystem development. Incrypted reported this in a press release.
“More than 2% of the total FLR supply will be permanently removed from circulation, preventing token ownership dilution among the community and strengthening incentives for new users to join the network,” the statement said.
The assets planned for burning were allocated to early Flare users. They will no longer be distributed after the company reached agreements with these organizations regarding how the blockchain improvement proposal (FIP.01) would impact token distribution among shareholders.
198,880,170 FLR will be burned immediately, with an additional 66,293,390 being burned monthly until January 2026.
The CEO of Flare, Hugo Filion, stated:
“We are pleased to have reached an agreement with our shareholders and we thank them for their support. It is right that investor token distribution should also be affected by the changes implemented in FIP.01. Without this, investors could claim an approximately threefold increase in their initial distribution through FlareDrops, which would unfairly dilute the community’s shares.”
According to Filion, the amount of burned tokens represents almost 40% of the initially allocated volume for investors.
At the time of writing, the FLR token is trading at $0.009329, according to Coinmarketcap.
Recall that in July, Binance burned 1,991,854 BNB tokens.
