- The first FlareDrop Distribution shall happen next month on March 17, with 36 subsequent distributions later.
- The new distribution method helps users break free from centralized custodians and get greater control over their tokens.
In the latest development, Ripple partner Flare Networks announced the approval of the first of the 36 FlareDrop Distributions, scheduled next month on March 17 at 12:00 UTC. Flare Networks made the announcement through a tweet last Friday, February 10, while sharing a reference guide.
Following the approval of FIP.01, the first of the 36 FlareDrop Distributions will be available to claim on March 17 at 12:00 UTC. All the information about the effects of the proposal and the distribution timeline are in this reference guide.https://t.co/382svJYM2G#Flare pic.twitter.com/ocfogljuvt
— Flare (@FlareNetworks) February 10, 2023
With a 93 percent majority and a 17 percent voter turnout, the Flare community approved the first Flare Improvement Proposal. The FIP.01 is designed such that it aligns Flare’s tokenomics with other key ambitions of the Flare Foundation such as addressing the blockchain utility and interoperability issues.
The first of the 36 FlareDrop Distributions shall happen next month on March 17.
Adopting a New Method of FlareDrop Distribution
Initially, in December 2020, the platform intended the FlareDrop distribution for holders of XRP tokens. As per the previous plan, they were to receive 15% as an initial distribution and the rest over 36 months.
The initial distribution happened last month on January 9, 2023, during the Flare Token Distribution Event. However, following the approval of FIP.01, the distribution of the remaining 85% will be shared among all holders of wrapped FLR.
As per the initial plans, the split shall still happen in over 36 installments. This includes 35 installments of 676,040,637 FLR and one final installment of 584,760,888 FLR. In the initial 15% distribution the Flare community will receive a total of 28,524,921,372 FLR.
Every 30 days or monthly, each installment will proportionately allocate to wallets holding wrapped FLR (WFLR). Users shall claim these tokens within 90 days or the Flare platform would burn them. The official announcement notes:
Within every 30day FlareDrop Distribution Cycle, the mean WFLR balance will be calculated based on 3 random blocks chosen from the 23 days prior to distribution day. The received FLR will then be proportional to this average as a percentage of the total circulating WFLR.
By using the Flare Portal, users need to actively claim these tokens. Recently, Flare has also introduced facilities for safe automatic claiming by third parties allowing users to “set and forget”. Some wallets have already leveraged these facilities.
Benefits of New Distribution Method and Reduced Inflation
Flare Networks explains the benefits of its new distribution method with the major being removing the dependency on centralized exchanges for future distributions.
In the case of a centralized exchange, if the initial recipient wallets were in custody, users don’t get access to the tokens until the custodian releases them. Also, if the exchange suffers financial issues, it puts users at risk of future token loss. Under this new on-chain method, users get the freedom to decide where they want to receive their tokens. Wallets that hold WFLR tokens 23 days prior to the distribution will be eligible to claim their share of the installment.
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The new distribution method also broadens access and allows Flare-connected communities to benefit. “Only active network participants who are holding WFLR will receive future distributions. This will result in a transfer of tokens from people who are not interested in Flare as a project or a community, to those who want to participate or contribute,” the announcement notes.
Previously, the inflation of the Flare Network was set at 10% of the fully diluted supply. Now, it’s been changed to 10% of the circulating supply during the first year, 7% in the second, and 5% in the third year and onwards. This means over time, inflation tends towards 0%.
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