Flare Network burns 66 million FLR tokens as part of a deflationary program aimed at boosting long-term holder value.
Points
- Flare Network burns 66 million FLR tokens as part of a deflationary program.
- The burn is part of a 2.1 billion token program running until January 2026.
- The initiative aims to prevent unfair dilution of community holdings.
- Despite the burn, FLR’s price has dropped over 45% since June 2024.
Flare Network, a layer-one blockchain that builds decentralized data infrastructure, has announced the monthly burn of 66,293,390 FLR tokens. This burn is part of a larger 2.1 billion token program set to run until January 2026, aimed at ensuring value addition to community token holdings.
According to Hugo Philion, the CEO and co-founder of Flare Network, the 2.1 billion FLR token burn, representing around 40% of the original allocation to early investors, is designed to prevent unfair dilution of community holdings. By reducing the total supply of tokens, the burn program seeks to enhance the value of the remaining tokens for long-term holders.
“Without this burn, the investors would be able to claim approximately 3x their original allocation through the #FlareDrops, unfairly diluting community holdings,” stated Philion.
Despite the ongoing token burns, FLR’s price has not seen a significant uptick. Since June 2024, the price has dropped over 45%, currently trading around $0.01615. The small-cap altcoin, with a fully diluted valuation of about $1.66 billion and a daily average traded volume of around $10 million, has faced considerable challenges in recent weeks.
Technically, FLR’s price closed last week below the support/resistance level of around $0.0183, which coincides with the 0.786 weekly Fibonacci Retracement. However, the weekly Relative Strength Index （RSI） approaching the 30% level suggests that the digital asset is largely oversold.
解説
- Deflationary program: A strategy where a portion of the token supply is permanently removed from circulation to increase the value of the remaining tokens.
- Fully diluted valuation: The market capitalization of a cryptocurrency if all possible tokens were in circulation.
- Fibonacci Retracement: A technical analysis tool that uses horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before the price continues in the original direction.
- RSI （Relative Strength Index）: A momentum oscillator that measures the speed and change of price movements, indicating overbought or oversold conditions.