On January 13th, Flare shared his preparations for voting on Flare Improvement Proposal 01 (FIP01) on Twitter.
Flair said the 66% threshold required to initiate the voting process has been achieved. As a result, holders of his FLR, Flare Network’s native token, will officially start voting for his FIP01 after a 7-day notice period.
Even in this development, the Flare Foundation clarified The original FLR distribution method of 4.278b FLR will remain intact. By the time voting begins, 15% of the total FLR supply will be distributed.
In the meantime, Flare is preparing guides and information for holders planning to vote. Between FLR’s token distribution event and Election Day, Flare will calculate the applicable inflation rate.
Details of FIP01
FIP01 is a proposal by the Flare Foundation that influences the FLR tokennomics and payout structure. A simple majority vote by FLR holders is required for this proposal to pass.
Flare Foundation and Flare VC Fund are prohibited from participating. According to project guidelines, these entities must have escrowed FLR holdings prior to Election Day. In this way, only retail FLR holders representing his 15% of all coins in circulation are allowed to vote.
FIP01 is controversial, judging by community and owner reaction. During the chat, Flare believes implementing this improvement is critical to the project’s long-term success. The team notes that Flare has grown over the past two years and is “a significantly larger project than originally envisioned.” The implementation of FIP01 will change the distribution of tokens to “provide every chain participant and newcomer to the space an equal opportunity to become a participant in the Flare ecosystem and help it grow.” they are adding.
What FIP01 Brings
There is a change in how FLR distribution is done if FIP01 is passed. For example, the Flare Foundation says it does not need to rely on centralized platforms like Binance or Uphold to receive tokens. FLR holders are also allowed to delegate and receive a share of the FLR distribution. This means it will likely clean up excess liquidity and increase fairness among holders.
Additionally, the Flare Foundation has indicated that users who choose to stake more FLR will receive more rewards than the current setup. In addition, FIP01 gives owners more control and allows them to pay their taxes when it suits them best, Flare explained.