On the 23rd of August 2022, the Flare network announced the Flare improvement proposal 01, which aims to improve token distribution, inflation rates, and the existing incentive structure.
The Flare network is a blockchain that enables secure Cross-chain interoperability. It is the first project using the Federated Byzantine Agreement protocol, set to launch in 2022. The Flare foundation will issue the FIP01.
The proposal involves changes in reward distribution and payout structure to improve the short-term and long-term inflation of the FLR token to ensure its success.
Recent changes have occurred, resulting in a rapid expansion of the Flare project. Expanding from a single entity and community to providing secure smart contract assets for developers who design cross-chain applications.
The new proposal is designed to maintain current AirDrop participants while making a place for new entries into the Flare ecosystem. This equality maximizes the rewards for so many members of the FLR community.
The proposal aims to maintain the initial distribution system, with 15% of FLR tokens distributed to AirDrop participants. In contrast, the remaining FLR tokens will be distributed to proxy delegates over three years.
The proposal also aims to reduce the inflation rate to 10% in year one and 7% in year two. A Cross-chain incentive structure is to calculate 3% per annum of FLR supply or 10% of FLR and distribute the lesser value of the two equally to all tokens staked.
If passed, individuals wouldn’t have to rely on centralized platforms for distributions, and those who delegate Flare tokens are set to receive more incentives. This provides a strong incentive to reduce unneeded liquidity and ensure equality between FLR holders.