Tokenomics#
Flare’s token economics support Flare’s ambition to connect the decentralized economy and drive broader adoption of web3. These tokenomics help to create a more balanced playing field where multiple connected ecosystems have an incentive to grow and participate with Flare. The adoption of FIP.01 on January 27, 2023 enabled this approach by changing the mechanism of the public token distribution.
Token Allocation#
At network genesis, 100 Billion $FLR tokens (100,000,000,000) were created.
They have been allocated to the following groups.
Note the delegation, claiming, and voting abilities of each, defined here:
- Can delegate: The entity can delegate tokens to the Flare Time Series Oracle to earn standard inflationary rewards.
- Can claim: The entity can wrap tokens to claim a portion of the FlareDrop.
- Can vote: The entity can use its tokens to participate in governance by voting on Flare Improvement Proposals.
Flare Partners#
| Entity | Total $FLR Allocation | Can Delegate | Can Claim the FlareDrop | Can Vote |
|---|---|---|---|---|
| Flare Networks Limited (FNL) | FNL builds tools, applications, and solutions designed to unify the decentralized economy using Flare’s native data infrastructure. They were the earliest Flare development partner and built the software that powers the Flare blockchain, which was subsequently handed off to the Flare Foundation to operate. | |||
| 12,500,000,000 (12.5 billion) | YES | NO | YES | |
| Flare VC Fund | A proactive investment entity designed to catalyze ecosystem growth, diversity, and participation by providing funds to carefully selected projects and communities. Flare Foundation and Flare Networks Limited each provide 50% or 5.0B of these tokens. | |||
| 10,000,000,000 (10 billion) | With tokens from FNL only | NO | NO | |
| SUBTOTAL | 22.5 Billion $FLR |
|||
Flare Community#
| Entity | Total $FLR Allocation | Can Delegate | Can Claim the FlareDrop | Can Vote |
|---|---|---|---|---|
| Flare Foundation (FF) | The foundation is a non-profit responsible for operating the Flare network ecosystem. Tokens to be distributed to community projects via the Ecosystem Support Program. | |||
| 9,787,578,628 (9.8 billion) | NO | NO | NO | |
| Initial Token Distribution | Airdrop of `$FLR` tokens to wallets that held `$XRP` tokens on December 12, 2020. | |||
| 4,278,738,206 (4.3 billion) | YES | YES | YES | |
| FlareDrop | Public distribution allocated to incentivize network participation. Can be earned by `$FLR` holders who wrap their tokens over a 36-month distribution period. | |||
| 24,246,183,166 (24.2 billion) | YES | YES | YES | |
| Cross-chain Incentives | Network participation incentive earned by users bringing cross-chain tokens to Flare. | |||
| 20,000,000,000 (20 billion) | YES | YES | YES | |
| SUBTOTAL | 58.3 Billion $FLR |
|||
Team, Advisors, and Backers#
| Entity | Total $FLR Allocation | Can Delegate | Can Claim the FlareDrop | Can Vote |
|---|---|---|---|---|
| Founding Team | The first team members who have been building Flare together since 2017. | |||
| 7,000,000,000 (7 billion) | YES | NO | YES | |
| Rest of Team | Subsequent team members who have joined Flare in the intervening years. | |||
| 1,500,000,000 (1.5 billion) | YES | NO | YES | |
| Future Team | Incentive pool for future recruits. | |||
| 3,000,000,000 (3 billion) | YES | NO | YES | |
| Advisors | Reserved for strategic advisors. | |||
| 2,000,000,000 (2 billion) | YES | YES | YES | |
| Backers | Contingent allocation for early backers of the project. | |||
| 5,687,500,000 (5.7 billion) | YES | YES | YES | |
| SUBTOTAL | 19.2 Billion $FLR |
|||
Inflation Amount#
| Entity | Total $FLR Allocation | Can Delegate | Can Claim the FlareDrop | Can Vote |
|---|---|---|---|---|
| Inflation | Monthly inflation amount that drives participation and supports decentralized third parties running core Flare infrastructure: Flare Time Series Oracle data providers (70%), network validators (20%), and State Connector attestation providers (10%). | |||
| N/A | YES | YES | YES | |
High-Level View#
The majority of tokens are destined for community ownership, whether by direct token distribution, network incentives, or through the Flare Foundation ecosystem programs.
Initial token distribution: Macro view of total $FLR allocation.
Token Description#
$FLR is the transactional token for the Flare Network.
| Attribute | Description |
|---|---|
| Network | Flare |
| Token name | Flare |
| Ticker | FLR |
| Initial supply | 100 Billion |
| Decimals | Up to 18 |
| Genesis creation date | July 14, 2022 |
| Token Distribution Event (TDE) | January 9, 2023 |
| FIP.01 acceptance: | January 27, 2023 |
Flare Token Utility#
Flare is an EVM-based Layer 1 that gives developers decentralized access to data from other chains and the internet. This access enables new use cases and monetization models, while allowing apps to serve multiple chains through a single deployment.
$FLR is the network token and provides support for each of these functions:
- Incentivized delegation to the Flare Time Series Oracle (FTSO) to support the provision of reliable decentralized data.
- Collateral within decentralized applications built on Flare blockchains (cross-chain or solely native).
- Participation within network governance.
- Transaction fees to prevent spam attacks.
Public Distribution#
Here are important highlights of the public token distribution, updated following approval of Flare Improvement Proposal 01 (FIP.01). The full details are available in the FIP.01 blog post.
The 28,524,921,372 $FLR public distribution is split into two parts:
- The first 15%, the initial Airdrop, which equates to 4,278,738,206
$FLR, was distributed during the Token Distribution Event (TDE) on January 9, 2023 to wallets that held XRP on December 12, 2020. - The remaining 85% or 24,246,183,166
$FLR, the FlareDrop, are being distributed over 36 monthly amounts directly to token holders who have wrapped their$FLRinto$WFLR. There will be 35 monthly distributions of 2.37% of the total (676,040,637$FLR) and a final distribution of the remaining 2.05% of the total (584,760,871$FLR) in month 36.
Inflation Calculation#
Annual inflation is calculated based on circulating supply and changes as the first 3 years progress:
- 10% in year 1.
- 7% in year 2.
- 5% from year 3 onwards.
Vesting Detail#
Vesting occurs when the full rights to an asset are gradually acquired over a pre-determined schedule. One cannot exercise any of the rights to each portion of the asset until its agreed-upon vesting date, thus incentivizing participation and strengthening the community. Additionally, the future right to an asset cannot be taken away unless stipulated in the vesting agreement, such as the requirement for employee status on a vesting date.
Flare tokens are subject to vesting schedules as follows.
| Entity | $FLR Amount in Genesis | Vesting Schedule |
|---|---|---|
| Flare Networks Limited (FNL) | 12.5 billion | Subject to 36-month vesting schedule, with 15% on token distribution event (TDE) and the remainder vesting in 35 monthly amounts of 2.37% of the total and one final amount of 2.05% of the total in month 36. |
| Flare VC Fund | 10 billion | |
| Flare Foundation (FF) | 9.8 billion | |
| Initial Token Distribution | 4.3 billion | The initial airdrop was completed during the token distribution event, January 9, 2023. |
| FlareDrop | 24.2 billion | Subject to a 36-month vesting schedule, with the full amount vesting in 35 monthly amounts of 2.79% of the total and one final amount of 2.35% in month 36. |
| Cross-chain Incentives | 20 billion | The lesser of 3% of circulating supply or 10% of the cross-chain incentive pool, calculated per annum and distributed pro rata per month. |
| Founding Team | 7 billion | Subject to 36-month vesting schedule, with 15% on token distribution event (TDE) and the remainder vesting in 35 monthly amounts of 2.37% of the total, and one final amount of 2.05% of the total in month 36. No tokens permitted to be sold within the first 6 months. A maximum of 10% of vested tokens permitted to be sold within months 7-12. A maximum of 25% of total vested tokens (including any already sold) permitted to be sold within months 13-18. |
| Rest of Team | 1.5 billion | |
| Future Team | 3 billion | |
| Advisors | 2 billion | |
| Backers | 5.7 billion | Backers have different vesting schedules. Allocations are contingent upon certain conditions being met and are, therefore, not guaranteed. |
| Inflation | N/A | Year 1: 10% of circulating supply calculated per annum and distributed pro rata per month. Year 2: 7% of circulating supply. Year 3+: 5% of circulating supply. |
Supply Metrics#
The first three charts show month 0 $FLR data and the remaining charts show $FLR trends over 36 months and at 36 months. The charts visualize aspects of these metrics:
- Total Supply: Initial supply at genesis + inflation.
- Initial Supply: Unlocked distributed tokens + all locked tokens. 100B
$FLRcreated at genesis. - Circulating Supply: Unlocked distributed tokens. Tokens provided through the initial token distribution event, FTSO delegation rewards, and FlareDrops and vesting schedules.
- Liquid Supply: Sellable. Circulating Supply at liberty to be sold.
$FLR token distribution.
Example: The Flare team can't sell their tokens immediately, but they can use them to earn FTSO rewards. Their tokens are circulating, but not liquid.
Month 0 $FLR#
Circulating $FLR#
The recipients of the initial token distribution (Airdrop) are the largest single group of token holders. These tokens are available for network participation.
Please note that the Flare Foundation and Flare Networks Limited amounts also include the unlocked backers’ tokens because this is before their distribution commences in month 6.
Month 0: Circulating $FLR token distribution (12.0B $FLR).
Liquid $FLR#
Although Flare team members can use their initial token distribution to participate fully in the network and support reliable FTSO data provision, they are restricted from selling any of the tokens they receive in the first 6 months, and no more than 25% within the first 18 months.
As per the Circulating $FLR chart, the FF & FNL percentages include the unlocked but as yet undistributed backers’ tokens.
Month 0: Liquid $FLR token distribution (10.0B $FLR).
Total $FLR#
80.2% of the initial total distribution (100B at genesis) is permitted to vote in governance, leaving 19.8% that is not permitted to vote (Flare Foundation & Flare VC Fund).
Month 0: Total $FLR token distribution (100B $FLR).
36-Month $FLR#
Circulating and Liquid $FLR#
Once the 36-month token distribution is complete, there will be 93.9B $FLR liquid and circulating.
Month 36: Circulating and liquid $FLR token distribution (93.9B $FLR).
Distribution Schedule#
After the initial 15% distribution, the majority of entities receive the remainder of their allocation smoothly over 36 months. The tokens are available for network participation, including governance and delegation to FTSO, but they are not liquid.
36-month $FLR token distribution schedule.
The slight bumps are due to the delayed distribution of backer tokens commencing in months 6 and 13.
Liquid Supply#
Due to the restrictions placed on team token sales described in the Liquid $FLR chart above, until month 19 there are fewer liquid tokens than there are tokens able to participate in governance and delegate to the FTSO.
36-month $FLR liquid token distribution schedule.
Circulating Supply#
After 36 months, 85% of $FLR will be circulating (93.9B of a total 110.1B $FLR).
$FLR token supply over 36 months.
Vote Power#
Vote Power is the weight applied to a community member's vote, proportional to the amount of wrapped Flare or Songbird tokens ($WFLR or $WSGB) it holds, plus any amount delegated to it.
From day 1, the Token Distribution Event (TDE), Flare has had below 50% governance vote power, with this percentage decreasing further throughout the distribution period.
Flare’s vote power is calculated from the sum of unlocked tokens held by Flare Networks Limited (FNL) plus the team and advisors.
36 Month Trend: Vote power.