š FIP.01 - Flare Distribution, Inflation & Incentive Pool Proposal š
This proposal is issued by the Flare Foundation and if passed consists of a set of changes that will be made to the distribution and inflation of the Flare blockchainās native token, FLR together with changes in payout structure and recipients of the Cross Chain Incentive Pool.
Flare Improvement Proposal 1 is critically important for the long term success of Flare. Much has changed in the last two years. Flare is a radically larger project than what was originally envisioned. Instead of serving a single community with a single utility, Flareās protocols are now on the path to provide developers with scalable smart contracts, truly decentralized price feeds, secure state acquisition from other blockchains, superior bridging for smart contract and non-smart contract assets, secured data relay and horizontal scaling through a fully interoperable multi-chain ecosystem, starting with Songbird. Flare will present developers with a single, simple, coherent stack on which to build applications that are fully cross-chain capable.
To allow Flare to thrive, the token distribution, which was designed to build participation from a single community with a single utility, needs to change 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.
This proposal has been designed to preserve existing airdrop recipients' foundational place in the ecosystem and put those coming fresh to the ecosystem on equal footing. This maximizes the benefit for the most number of people within the active Flare community and ecosystem, supporting Flareās ambition to connect the decentralized economy and drive broader adoption of Web3 in general. It can help create a more balanced playing field where all the different ecosystems which Flare will help connect would have an equal incentive to grow and participate with Flare. The proposed changes and benefits include:
āIf FIP01 is successfully passed by the community, individuals will no longer be reliant on distributions from centralized platforms. If the level of staking on Flare is anywhere near the industry average, then those who delegate will receive more Flare tokens via the new proposal than the current system.
āThis proposal substantially lowers inflation and reduces the long term supply, meaning those that participate could end up with a meaningfully larger share of the token ownership as they would have more tokens with fewer in circulation.
āFIP01 enables anyone holding FLR to delegate and receive a share of the distribution, this makes the distribution transferable, generates a strong incentive to reduce excess liquidity and treats all those who hold FLR, however they obtain it, equally.
āIn some tax jurisdictions, this proposal makes it possible to defer the tax event of realizing Flare while still receiving the remainder of the token distribution, allowing better control of the timing of the tax liability.
āThese are just a selection of the benefits, please read the full proposal for more detail and supporting evidence. There are five sections - this introduction, the proposed changes, important voting information, rules for fairness, the rationale for the changes, and the mechanism by which they would be implemented.
https://flare.xyz/fip01/