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Flare Network has surpassed 1 billion $FLR tokens burned, enhancing ecosystem health with a 2.1B FLR burn plan, reducing dilution and boosting incentives.
The Flare Network team burned 66 million FLR tokens today, essentially bringing the total amount of burned FLR above 1 billion. This event is part of an ongoing strategy to enhance the health of its ecosystem by reducing token supply.
Another 66M $FLR burned – passing 1B total burn mark 🔥
Our multi-year burn strengthens the community (increasing their share to 59.6% by Jan 2026)
while $FLR continues to burn from fees & unclaimed rewards.
Viex tx: https://t.co/DPI1heAHgl pic.twitter.com/WNpN5hUd7C
— Flare ☀️ (@FlareNetworks) May 8, 2024
FTSO.AU, an infrastructure provider on the Flare Network previously called attention to the event, confirming in a post on X that the EVM-based Layer 1 blockchain is set to surpass a significant milestone by burning over 1 billion FLR tokens.
Ongoing Flare Token Burns
The Flare Networks team has actively pursued a deflationary token policy, burning unclaimed rewards and transaction fees to reduce the circulating supply of FLR. This includes a considerable tranche of tokens originally allocated to early backers, which will not be distributed as planned.
Instead, these tokens are being burned in alignment with the Flare Improvement Proposal, FIP.01, which impacts how token allocations to equity shareholders are handled.
Following the latest burn exercise, the Flare Networks team has now incinerated 1,042,485,039 (1.042 billion) FLR through various means, including transaction fees and unclaimed FlareDrops.
1,042,485,039 $FLR have been burned as a result of;
1. Transaction fees.
2. Unclaimed FTSO rewards and FlareDrops.
3. Token burn from early backers, for changes to relating to FIP.01🔥 https://t.co/uKqWlObcop 🔥 pic.twitter.com/s8KxqoK5Sp
— FTSO.AU ☀️ (@ftso_au) May 8, 2024
The planned burn of 2.1 billion FLR tokens represents more than 2% of the total supply and almost 40% of the initial allocation for investors. By removing these tokens from circulation, Flare aims to decrease competition for future distributions and uphold the value of community holdings.
FLR Market Movements and Community Impact
The recent token burns have played a role in the financial metrics surrounding FLR. Despite a slight price decline in the past 24 hours, FLR has seen an overall price increase of 4.58% over the past week. Currently, Flare’s market cap stands at $1.12 billion with a circulating supply of 39 billion FLR tokens.
The previous incineration exercise happened in February, when Flare Networks executed a substantial burn of 66.29 million FLR tokens. The FLR tokens were worth $1.94 million based on February’s market rates. Like the most recent transaction, this burn was transparently executed, with transaction details publicly shared to emphasize accountability.
In addition to these burns, Flare has seen increased adoption, highlighted by its recent listing on Bitvavo, the largest exchange in the Netherlands. This addition could help enhance visibility and accessibility of FLR, particularly within the European market.