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💥Flare Tokenomics💥
November 05, 2022
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Flare mainnet is approaching the public Token Distribution Event (TDE). This document provides a recap of the token distribution and token economics.

There are two possible versions of the tokenomics, dependent on whether Flare Improvement Proposal 01 (FIP.01) passes:

  1. The original distribution scheme, planned under different market conditions when the purpose of Flare was to provide a smart contract layer for XRP only.
  2. The proposal encapsulated in FIP.01, which factors in new market conditions and the far larger vision of Flare to present developers and users with a simple and coherent stack for decentralized interoperability.

Charts and descriptions are shared for both versions below. To avoid confusion, charts pertaining to the tokenomics after approval of FIP.01 have a green border, and those pertaining to a rejection of FIP.01 have a red border. This document covers each in turn. For more details of the specific differences between the versions, please see the FIP.01 blog article.

Headline Figures

Full details and vesting information are in tables further down, but TL;DR, the most important numbers to know are below. The figures are the same for both potential distribution versions.

Total token distribution on day 1:

  • 100 Billion FLR tokens.

Community FLR allocation:

  • 28.5 Billion FLR distributed direct to community members over 36 months.
  • 20 Billion FLR available for community members who bring value onto the Flare network by using Flare’s cross-chain bridges (FAssets & Layer Cake).
  • 9.8 Billion FLR allocated to the Flare Foundation for community & ecosystem initiatives.
  • TOTAL 58.3 Billion FLR.

Team, advisors & backers:

  • 5.7 Billion FLR to be provided to early stage backers, vesting from month 6.
  • 13.5 Billion FLR allocated to existing and future team members, plus advisors. The team is restricted from selling any FLR in the first 6 months, no more than 10% of their holdings in the first 12 months, and no more than 25% (inclusive of the initial 10%) of their holdings within the first 18 months.
  • TOTAL 19.2 Billion FLR.

Flare entities:

  • 12.5 Billion FLR allocated to Flare Networks Limited, which is responsible for native product development on Flare (e.g. Layer Cake bridges).
  • 10 Billion FLR allocated to the Flare VC Fund, which will invest in promising ecosystem projects.
  • TOTAL 22.5 Billion FLR.

Summary:

Chart: The majority of tokens are destined for community ownership, whether by direct token distribution, network incentives or through Flare Foundation ecosystem initiatives. This will not be affected by whether FIP.01 is approved or rejected.

Flare is the transactional token for Flare Network

  • NetworkFlare
  • Token nameFlare
  • TickerFLR
  • Genesis supply100 Billion
  • Decimals18
  • Genesis date14 July 2022
  • Anticipated Token Distribution Event (TDE)By 9 January 2023 🤑

Flare Token Utility

Flare is a Layer-1 blockchain built to connect everything. It presents a technology stack that will enable:

  • Scalable EVM-based smart contracts.
  • Highly decentralized price feeds.
  • Secure state acquisition from other blockchains.
  • Superior bridging for smart contract and non-smart contract assets.
  • Secured data relay.
  • Horizontal scaling through a fully interoperable multi-chain ecosystem.

Flare (FLR) is the network token and will provide support for each of these functions:

  1. Incentivized delegation to the Flare Time Series Oracle (FTSO) to support the provision of reliable decentralized price data.
  2. Collateral within Flare’s bridging applications, FAssets and Layer Cake, by operating as an Agent or Bandwidth Provider, respectively.
  3. Collateral for securing Data Relay.
  4. Collateral within third party decentralized applications built on Flare blockchains (cross-chain or solely native).
  5. Participation within network governance.
  6. Transaction fees in order to prevent spam attacks.

Definitions

* Explanations:

  1. Can delegate: Tokens that can be delegated to the Flare Time Series Oracle to earn standard inflationary rewards.
  2. Can earn: Tokens that can be wrapped in order to to receive a share of the public token distribution in the form of delegation incentives. This is only relevant if the governance proposal FIP.01 is passed by the community.
  3. Can vote: Tokens that can be used to participate in governance by voting on Flare Improvement Proposals.

Token distribution by exchanges

In both potential distribution outcomes, centralized exchanges have an important role to play in providing FLR tokens safely and efficiently to their customers. Flare has been communicating with the exchanges to assist them with their FLR integration and has requested confirmation that they will be ready to distribute FLR as close to the TDE date as possible.

Proposed updated distribution

This will be the token distribution should Flare Improvement Proposal 01 (FIP.01) be successfully passed by community governance. The full details of the changes are available in the FIP.01 blog post. Important highlights are:

  • The 28,524,921,372 FLR public distribution will be split into two parts. The first 15%, which equates to 4,278,738,206 FLR, will be distributed during the Token Distribution Event (TDE) to wallets that held XRP on 12.12.20. The remaining 85% or 24,246,183,166 FLR will then be distributed in 36 monthly amounts directly to token holders who have wrapped their FLR into WFLR. There will be 35 monthly distributions of 2.37% of the total (676,040,637 FLR) and a final distribution of the remaining 2.05% of the total (584,760,871 FLR) in month 36.
  • Annual inflation will be calculated based on circulating supply rather than total supply in order to avoid excess liquidity in the early stages after TDE. Furthermore, instead of inflation running at 10% ongoing, it will be 10% in year 1, 7% in year 2, and then 5% from year 3 onwards.
  • The cross-chain incentive pool payout will be changed to include all cross-chain participants on Flare (i.e. Layer Cake as well as FAssets). The rate of payout will be adjusted from being split equally over 120 monthly payouts to being the lesser of 3% of circulating supply per year or 10% of the remainder of the cross-chain incentive pool. This will provide a better balance of payout as participation grows, while avoiding payouts escalating too high and therefore draining the pool too fast.

Vesting detail for proposed distribution update

Charts visualizing the token distribution should FIP.01 be approved by the community

Chart Y1: After the token distribution event (TDE), airdrop recipients are the largest single group of token holders.
Chart Y2: Although Flare team members can use their initial token distribution to participate fully in the network and support reliable FTSO data provision, they are restricted from selling any of the tokens they receive in the first six months, and no more than 25% within the first 18 months.
Chart Y3: 19.8% of the genesis total distribution is not permitted to vote in governance (Flare Foundation & Flare VC Fund).
Chart Y4: Once the 36-month token distribution is complete, there will be 93.9B FLR liquid and circulating.
Chart Y5: After the initial 15% distribution, the majority of entities receive the remainder of their allocation smoothly over 36 months. The slight bumps are due to the delayed distribution of backer tokens commencing in months 6 and 13.
Chart Y6: Due to the restrictions placed on team token sales described in chart Y2, until month 19 there are fewer liquid tokens than there are tokens able to participate in governance and delegate to the FTSO.
Chart Y7: After 36 months, 85% of FLR will be circulating (93.9B of a total 110.1B FLR).
Chart Y8: From token distribution, Flare always has below 50% vote power, with this percentage decreasing further throughout the distribution period. Flare’s vote power is calculated from the sum of unlocked tokens held by Flare Networks Limited plus the Team and Advisors.

Legacy distribution

The legacy token distribution will be followed if Flare Improvement Proposal 01 is not passed. The full details of the changes are available in the FIP.01 blog post. Important highlights are:

  • The entire 28,524,921,372 FLR public distribution will be carried out by airdrop over 36 months. During the Token Distribution Event (TDE) the first 15%, which equates to 4,278,738,206 FLR, will be provided by airdrop to wallets that held XRP on 12.12.20. There will then be 35 distributions of 2.37% of the total (676,040,637 FLR) and a final distribution of the remaining 2.05% of the total (584,760,871 FLR) in month 36, all to the same wallets that received the initial TDE distribution.
  • Annual inflation will be calculated as 10% of fully diluted supply per annum, resulting in far greater liquidity in the early stages of Flare’s growth than if FIP.01 is passed.
  • The cross-chain incentive pool will be paid out in 120 equal amounts over 120 months, equating to 166,666,667 FLR per month.

Vesting detail for the legacy distribution

Charts visualizing the token distribution should FIP.01 be rejected by the community

Chart N1: At token distribution in month 0, the distribution is the same for both possible versions of the tokenomics. This makes sense as this will happen prior to the FIP.01 governance vote.
Chart N2: Exactly as described in chart Y2, if FIP.01 does not pass, Flare team members are still restricted from selling tokens within the first 18 months.
Chart N3: The only difference between this version and if FIP.01 passes is whether the public distribution happens purely by airdrop or by airdrop plus delegation incentives. The totals are the same.
Chart N4: Due to higher inflation, the legacy approach means after 36 months there are 26.3B more FLR tokens in circulation. This is 28% higher than if FIP.01 is passed.
Chart N5: The far greater level of monthly inflation is visible in this chart. The slight bumps are due to the delayed distribution of backer tokens commencing in months 6 and 13.
Chart N6: Due to the restrictions placed on team token sales described in charts N2 and Y2, until month 19 there are fewer liquid tokens than there are tokens able to participate in governance and delegate to the FTSO.
Chart N7: Note the steeper gradient for inflation and much higher circulating supply throughout. If FIP.01 is rejected, 89% of FLR will be circulating after 36 months (120.2B of a total 134.8B FLR).
Chart N8: Similar to if the governance proposal is passed, Flare vote power starts below 50% and decreases through the distribution period.

Summary of public token distribution options

The total amount of tokens allocated to the public distribution is the same regardless of whether FIP.01 is passed or not: 28,524,921,372 FLR.

The first portion of these tokens (15%) will be distributed prior to the FIP.01 governance vote taking place. Therefore, at the Token Distribution Event, exchanges and self-custody wallets will receive 0.1511 FLR for every 1.0000 XRP held for both YES and NO vote tokenomics.

If FIP.01 passes, there will be no additional airdrops. The remaining public allocation of 24,246,183,166 FLR will be distributed in 36 monthly amounts directly to token holders who have wrapped their FLR into WFLR.

If FIP.01 does not pass, there will be 36 additional monthly distributions to each address that participated in the December 2020 snapshot. The first 35 of these distributions will be in the ratio of 0.0239 FLR for every 1.0000 XRP held at the time of the snapshot. The final distribution will be in the ratio of 0.0206 FLR for every 1.0000 XRP.

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Rank State Income needed for family of four (2026)

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Colorado and Vermont Make the Top 10

As expected, many of the highest income thresholds are concentrated in the Northeast and along the West Coast.

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Vermont rounds out the top 10 at $280,384, despite having the second-smallest population of any U.S. state. Meanwhile, nearby states like New Hampshire, Maine, and Rhode Island all fall outside the top 10.

Just Six States Come in Below $200,000

Despite the wide range in living costs across the country, only six states have a comfortable-income threshold below $200,000 for a family of four.

Mississippi ranks lowest at $187,533, followed by Kentucky. The states of Arkansas, Tennessee, Louisiana, and Alabama also fall below the $200,000 mark.

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The resulting intelligence becomes a shared network rather than a proprietary asset.
 
That vision is beginning to emerge.
 
Bittensor's Move Toward Physical AI
 
While many people associate Bittensor (@bittensor) with language models and AI services, parts of the ecosystem are increasingly exploring embodied intelligence and robotics.
 
One example is Kinitro, a subnet focused on incentivizing the training and evaluation of embodied AI systems. The goal is to create competitive environments where developers build robotic intelligence and are rewarded based on performance.
 
The broader Bittensor ecosystem has also expanded into compute marketplaces, distributed inference systems, bandwidth infrastructure, and AI coordination layers that could eventually support robotics workloads. Several subnets now focus on decentralized compute, confidential inference, data transfer, and model training, critical components for future robotic systems.
 
In other words, the pieces are starting to appear.
 
Not a decentralized robot network yet.
 
But the infrastructure that could support one.
 
Beyond Bittensor: The Rise of Physical AI Networks
 
Bittensor isn't alone.
 
Across the industry, researchers and builders are experimenting with decentralized approaches to physical AI.
 
New research published in 2026 introduced the concept of DAO-enabled decentralized physical AI, or DePAI. The idea combines robotics, decentralized infrastructure, AI models, governance systems, and human oversight into a single framework. Instead of centralized control, robots and physical infrastructure could be coordinated through transparent rules and distributed ownership models.
 
At the same time, developers are exploring decentralized operating systems for robots that allow machines to communicate directly with each other and with distributed compute resources. These architectures are designed to make robotic systems more resilient and less dependent on a single cloud provider.
 
The goal is not simply decentralization for its own sake.
 
The goal is resilience.
 
If one server fails, the system continues.
 
If one company disappears, the network survives.
 
If one participant leaves, innovation continues.
 
But Here's the Reality
 
Decentralized AI faces the same challenge every decentralized technology faces.
 
Big Tech has resources. A lot of resources.
 
Training advanced robotics models requires enormous compute budgets, sophisticated simulation environments, access to specialized hardware, and vast amounts of real-world data.
 
That's why many robotics startups still partner with major cloud providers and AI companies. It's often the fastest path to deployment.
 
And there are legitimate concerns about whether decentralized networks can maintain quality, reliability, and security at the scale required for industrial robotics. Even researchers studying decentralized AI systems have highlighted risks around concentration, incentives, governance, and network security.
 
The challenge isn't just decentralizing intelligence.
 
It's decentralizing intelligence while maintaining performance.
 
That's much harder.
 
The Most Likely Outcome
 
The future probably won't be fully centralized. And it probably won't be fully decentralized either. Instead, we're likely heading toward a hybrid model.
 
Large technology companies will continue providing chips, cloud infrastructure, simulation platforms, and foundational research.
 
At the same time, decentralized AI networks will emerge as alternative coordination layers where intelligence, data, and economic value can be shared more openly.
 
The companies building robots may use NVIDIA hardware.
 
Train on Azure.
 
Run foundation models from OpenAI.
 
But they may also participate in decentralized data networks, decentralized compute markets, and decentralized intelligence protocols.
 
The future of robotics could end up looking less like a monopoly and more like an ecosystem.
 
The Bigger Question
 
The real question isn't whether decentralized AI can eliminate Big Tech.
 
It can't.
 
At least not anytime soon.
 
The real question is whether decentralized AI can prevent a future where a handful of companies control every robot, every model, every dataset, and every decision made by the machines operating around us.
 
As robots become workers, assistants, delivery drivers, factory operators, and even economic agents, that question becomes increasingly important.
 
Because the battle for the future of robotics is no longer about hardware.
 
It's about who owns the intelligence.
 
And that battle is just getting started.
 
 

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