Flare community prepares for FIP01 vote

After a 66 percent turnout, Flare announced that voting would begin. After the seven-day notice period, holders of FLR, the native token of the Flare Network, can cast their votes on FIP01.

In spite of this new information, the Flare Foundation has stated clearly that the initial FLR distribution methods for the 4.278b FLR will not change. Fifteen percent of the total supply of FLR will have been distributed by the time voting begins.

While that happens, Flare is compiling resources for holders who want to exercise their voting rights. Flare will have determined the relevant inflation rate between the token distribution event of FLR and voting day.

The FLR tokenomics and distribution model will be modified due to the Flare Foundation's proposal FIP01. A simple majority of FLR holders is required for the proposal to be approved. Members of the Flare Foundation and the Flare VC Fund are not allowed to take part.

These entities must have escrowed their FLR holdings prior to the voting day, as required by the project guidelines. This ensures that only 15% of the total coins in circulation, held by retail FLR holders, will have a voice in the voting process.

The community and holders have strong feelings about FIP01. Despite this back and forth, Flare remains committed to this proposed improvement as essential to the project's future. Flare has become “a radically larger project than originally envisioned,” according to the team's assessment after two years of development. According to them, once FIP01 is implemented, token distribution will be altered

“in such a way 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.”

Should FIP01 be approved, FLR distribution will be altered. People wouldn't need to rely on centralized platforms like Binance or Uphold, according to the Flare Foundation, for receiving tokens, for example. Additionally, FLR holders will be allowed to delegate with a share of the FLR distribution. It implies that there is a greater likelihood of removing excess liquidity and increasing equity among holders.

The Flare Foundation also stated that users who decide to stake more FLR will stand to benefit from greater rewards than under the current system. Furthermore, according to Flare, FIP01 gives holders more control by enabling them to post taxes at a time that works best for them.