FLR Utility

FLR is the native token of the Flare Network and serves multiple roles that support the blockchain’s functionality, security, and governance. It is used to pay transaction fees, ensuring that every interaction on the network carries a cost, which helps prevent spam and protects network performance. FLR can be staked to support the network’s consensus mechanism, allowing participants to delegate their tokens to validators who maintain the network’s integrity and earn rewards for doing so. It is also used in the Flare Time Series Oracle (FTSO), where users delegate FLR to data providers who supply decentralized price feeds; both providers and delegators are rewarded based on the accuracy of submitted data. Within decentralized applications built on Flare, FLR functions as collateral for minting synthetic assets and interacting with DeFi protocols.

FLR Supply and Allocation

• Delegation Incentives – 24.2%
  Allocated to reward users who delegate their FLR to data providers in the Flare Time Series Oracle (FTSO). These incentives encourage decentralized data provision and help maintain the integrity of off-chain data feeds on the network.

• Cross-Chain Incentives – 20%
  Reserved for users and developers who bring assets from external blockchains (like BTC, DOGE, XRP) into the Flare ecosystem. These rewards promote interoperability and expand Flare’s use cases by enabling non-smart contract tokens in DeFi and dApps.

• Networks Limited – 12.5%
  Allocated to Networks Limited, the entity responsible for supporting the ongoing development and operations of the Flare Network. This portion may also cover ecosystem support, technical development, and infrastructure-related costs.

• VC Fund – 10%
  Set aside for venture capital and strategic partners. These tokens support investments in early-stage projects, developers, and ecosystem startups that can help expand adoption and innovation within the Flare network.

• Private/Pre-sale – 5.5% (5.68B FLR)
  Allocated to early backers and contributors. The distribution schedule is structured to prevent short-term selling pressure and align investor incentives with the long-term success of the network.

• Other – 33.3%
  Covers categories such as team allocations, community initiatives, ecosystem grants, reserves, and future governance decisions. This portion provides flexibility for long-term sustainability, growth incentives, and unforeseen requirements as the network evolves.

FLR Vesting Schedule

The FLR token distribution follows a structured 36-month vesting schedule designed to support long-term network growth, align incentives across stakeholders, and prevent sudden market dilution. Token allocations are gradually released across categories, with inflation serving as a consistent source of new FLR to fund network participation rewards such as staking and data provision. Cross-chain incentives unlock steadily to encourage users to bring assets like BTC and XRP into the Flare ecosystem, while delegation incentives are distributed throughout the period to reward participants in the Flare Time Series Oracle (FTSO). Airdropped tokens, distributed to eligible users, follow a scheduled release to promote sustained engagement rather than short-term speculation. Allocations for backers, advisors, and team members—including the founding and future teams—are subject to delayed unlocks and extended vesting periods, ensuring alignment with long-term success.

Flare Economic Design

The economic design of Flare is structured to support decentralized infrastructure through continuous incentives, long-term sustainability, and network alignment. Its model centers around controlled inflation, targeted token distribution, and reward mechanisms that fund critical network functions such as data provision, security, and cross-chain activity.

Flare does not rely on high transaction fees to sustain the network. Instead, it uses protocol-level inflation to fund essential roles like validators, data providers, and cross-chain asset onboarding. A fixed percentage of new FLR tokens is issued annually and allocated through on-chain reward systems to users who participate in delegation, staking, and ecosystem functions. This ensures that network participants are consistently rewarded for providing utility, even as transaction volumes vary.

Token distribution is designed to reduce concentration and increase utility over time. Instead of front-loading emissions or releasing large amounts of FLR at launch, most allocations follow structured vesting and unlock schedules that extend across several years. This gradual distribution supports ecosystem growth without creating excessive short-term selling pressure.

In October 2023, Flare announced a token burn program that will remove up to 21 billion FLR from the total supply by the end of 2026. This initiative is aimed at supporting ecosystem health by reducing inflationary pressure and reinforcing long-term token value. The burn targets unclaimed airdrop allocations and excess tokens from the FlareDrop distribution system, and the process is executed on-chain for transparency

Highlights

• FLR has multiple utility functions, including paying transaction fees, supporting staking and validation, delegating to data providers, and serving as collateral in DeFi applications on Flare.
• The token supply is capped at 103.26 billion FLR, with allocations designed to incentivize network activity, support development, and fund long-term ecosystem growth.
• Key allocations include 24.2% for delegation incentives and 20% for cross-chain integration, ensuring active participation in data provisioning and adoption by non-smart contract assets like BTC and XRP.
• FLR follows a 36-month structured vesting schedule, gradually releasing tokens across different categories to align incentives and prevent sudden market dilution.
• Flare’s economic model uses controlled inflation to reward active participants, replacing dependency on high transaction fees and ensuring the network remains secure and functional under varying usage conditions.