Flare Network Enters FLR Utility Era After 36-Month FlareDrops

As of January 30, Flare Network has officially concluded its FlareDrop program, ending a 36-month distribution schedule under FIP.01. FlareDrops were more than a token giveaway.

They wanted to increase ownership of the network, encourage participation, and reduce reliance on centralized custodians.With this phase completed, FLR is now in a stable phase where the value will come from how the network is used, governed, and the activity on the protocol, rather than token distribution.

Flare has developed into a full data and interoperability network over the past three years. Flare is now capable of supporting tokenized assets, real-world asset integration, and decentralized finance through FAssets, FTSO, and FDC.

The network is also exploring verifiable off-chain computation using Trusted Execution Environments (TEEs) for privacy-focused institutional applications.

Flare Network Achieves Significant On-Chain Scale

On-chain data reveals that it is a rather large network currently. It has approximately 860,000 active addresses and supports 500,000 transactions per day.

The Total Value Locked is about $200 million, and the stablecoin market cap is over $110 million. Partnerships with LayerZero, USDT, Sentora, Figment, and Ankr have added to its ecosystem.

The network is a primary hub for DeFi, which is XRP-centric. Over 90 million FXRP tokens have been created, and approximately 80% of these tokens are utilized in DeFi applications such as SparkDexAI, Kinetic Markets, BlazeSwapDex, and Enosys Global.

Large and professional-grade protocols are expanding the programmable asset tools of the network, such as FirelightFi for XRP staking and UpshiftFi for actively managed vaults.

FLR Consumption Tied to Network Usage and Burns

Since the FlareDrops are completed, there are no further programmatic distributions. The FLR in circulation is 85 billion, out of a total of 105 billion. Every year, the new supply is capped at 5 billion FLR.

Source: X

The use of FLR is increasing with the activity on the network. The use of Smart Accounts, FAssets, FXRP, and the upcoming FBTC requires oracles and checks for data via FTSO and FDC, which consume more FLR than a regular token transfer.

The ongoing burns, such as the 2.1 billion FLR multi-year plan and burn fees, ensure that the economy of the token remains sustainable.

In the future, the Flare Foundation plans to propose changes to governance in Q1 2026 to improve the use of FLR in securing the network, the split of revenue from the protocol, and sustainability.

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