Flare community prepares to vote on FIP01

On Jan. 13, Flare shared on Twitter their preparation for the voting on Flare Improvement Proposal 01 (FIP01).

Flare said the 66 percent threshold needed to trigger the voting process had been achieved. Consequently, Flare Network’s native token, FLR, holders will officially start voting on FIP01 after the seven days notice period. 

Even with this development, the Flare Foundation clarified that the initial FLR distribution methods for the 4.278b FLR will remain as it is. By the time voting begins, 15% of the FLR total supply would have been distributed.

In the meantime, Flare is preparing guides and information for holders planning to vote. Between the token distribution event of FLR and voting day, Flare will have calculated the applicable inflation rate. 

Details of FIP01

FIP01 is a proposal by the Flare Foundation that will affect FLR tokenomics and payout structure. The proposal needs a simple majority vote from FLR holders to pass. 

The Flare Foundation and Flare VC Fund are barred from participating. Per the project’s guidelines, these entities must have escrowed their FLR holdings before voting day. This way, retail FLR holders, representing 15 percent of all coins in circulation, will be the only ones allowed to vote.

FIP01 is controversial, judging from the reaction of the community and holders. Amid this chatter, Flare believes implementing this improvement proposal is critical for the project’s long-term success. The team assesses that Flare has grown over the last two years and is “a radically larger project than originally envisioned”. FIP01 implementation, they add, will change token distribution “such that it offers participants from any chain and new entrants to the space an equal chance to become a participant in the Flare ecosystem and help it grow.”

What FIP01 brings

There are changes to how FLR distribution will be done should FIP01 pass. For instance, the Flare Foundation said people wouldn’t have to rely on centralized platforms like Binance or Uphold to receive tokens. FLR holders will also be permitted to delegate, receiving a share of FLR distribution. It means there is a better chance of mopping out excess liquidity and creating more equity amongst holders.

Furthermore, the Flare Foundation indicated that users who choose to stake more FLR stand to receive more rewards than in the current setup. Moreover, Flare explains that FIP01 empowers holders to have more control, allowing them to post taxes when it best suits them.