u.today
Flare Network has announced that the 66% distribution threshold for the vote on FIP01 has been surpassed. Voting on the Flare proposal will start in one week, and the voting period will last one week as well.
The 66% distribution threshold for the vote on FIP01 has been crossed. The 1 week notice period starts now. Voting will start in 1 week's time and the voting period will last a week. Guides and information on how to vote will be released prior to the start of voting.
— Flare ☀️ (@FlareNetworks) January 13, 2023
This FIP01 proposal, if passed, consists of a set of changes that would impact the distribution and inflation of the Flare blockchain's native token, FLR, together with changes in payout structure and recipients of the Cross Chain Incentive Pool.
In the voting phase, 85% of all FLR belonging to Flare entities and teams are escrowed and cannot vote; the Flare Foundation's related entities may not vote.
In a thread of tweets, Hugo Philion, co-founder and CEO of Flare Network, highlights the benefits and demerits of the proposal for XRP holders who participated in the 2020 snapshot.
Network/ecosystem benefits of FIP01:
— Hugo Philion ☀️ (@HugoPhilion) January 14, 2023
- Incentivises network participation and new ecosystem entrants.
- Shifts FLR to those that participate from those that don't.
- Reduces overall inflation.
- Incentivises infrastructure providers.-> Safer, more decentralized network.
He highlighted the demerits of the proposal: "FIP01 negatives for 2020 snapshot participants — FLR must be wrapped to receive the full and final distribution. Depending on participation, you may end with less than expected under the 2020 snapshot."
XRP holders would need to wrap their Flare tokens to receive full and final distribution.
On the other hand, the benefits are "it removes the risk of reliance on exchanges that may fail. Depending on participation, you may end up with more FLR than expected under the 2020 snapshot."
Receiving more FLR tokens is dependent on whether the level of staking on Flare is anywhere near the industry average.
FLR to be distributed over next 36 months
The total number of tokens allotted for public distribution is 28,524,921,372 FLR, regardless of whether FIP01 is approved or not. This equals a ratio of 1.0073 FLR for every 1.0000 XRP held.
The Flare token distribution, which started on Jan. 9, marks the first 15% of the overall public token distribution; the Flare (FLR) tokens were distributed to eligible users at a ratio of 1 XRP to 0.1511 FLR. The remaining 85% will be allocated over 36 months.