The FIP.01 vote starts at 07:00 UTC on Saturday 21 January. We have collated a number of community questions on the proposal. If your question is not answered here or in Flare’s governance documentation, please message us on Discord and we will endeavor to respond as fast as possible.
Is there a minimum number of votes or a minimum participation percentage required for the proposal to pass?
A simple majority is required. There is no minimum participation percentage.
Will the vote be 1 vote per address or 1 vote per wrapped FLR, i.e 100 FLR would be 100 votes?
1 WFLR = 1 governance vote.
Am I able to vote if my tokens are already delegated to the FTSO?
Yes you will still be able to vote using these tokens. The number of votes you receive is based on the amount of WFLR you hold. You have already wrapped your FLR in order to be able to delegate to the FTSO. All delegated WFLR will be included in the vote calculation.
If the vote passes, how would you calculate the number of tokens a person receives in the distribution?
Each month the rewards received would depend upon a person’s total wrapped FLR holdings as a percentage of all WFLR. This amount is calculated based on the average holdings across several random blocks during the month.
Will there be a way to “set it and forget it” for 36 months instead of logging in once a month to wrap?
Yes. Ecosystem partners are offering services (called automatic executors) that will claim your rewards to your account at regular intervals for a small fee. For the token distribution, this will happen once per month, but for the standard FTSO inflationary rewards, this is done once per epoch (every 3.5 days). Please see Bifrost Wallet, Flare Oracle and others for more information on this service.
Why have you changed the distribution from being a 100% airdrop?
There has been no change to the planned shape of the distribution. Since the public token distribution was first announced in 2020, it was planned as an initial 15% drop followed by smaller monthly distributions spread over three years.
Will I receive the same amount of tokens if this new proposal is passed?
If FIP.01 passes, the tokens you receive depend on how many WFLR you hold. Since FTSO delegation can earn you additional tokens, the amount you will receive from the distribution depends on the average delegation rate and the performance of the specific FTSO data providers you delegate to. With an average performing data provider and an average percentage of holders delegating, token delegators should receive more tokens over 36 months by the new method. Total percentage ownership will also be higher because the reduced inflation means there will be fewer tokens in circulation. Our ecosystem partner Flare.Space has produced a dapp where you can see how the proposed changes will affect the number of FLR you could receive.
Do I need to wrap the initial 15% and all subsequent monthly rewards in order to receive the maximum distribution?
The more FLR tokens a holder wraps, the greater share of the monthly distributions they will receive. Token holders would receive a share of the distribution every month for 36 months even if only the initial 15% is wrapped. However, if they also wrap all subsequent tokens received in the monthly distributions and the rewards received from delegating these tokens to the FTSO, their overall share will be much larger.
Is the token distribution in addition to the ‘normal’ rewards someone gets when wrapping & delegating FLR?
The inflationary rewards received from delegating to FTSO data providers are separate to the monthly distributions and will continue once the 36 month token distribution is complete.
Will the distributions received be added to the base on which future distribution rewards are calculated?
Each month your share of the distribution depends on the total number of wrapped Flare (WFLR) tokens you hold. The more you wrap, and therefore the greater share you have of all WFLR in circulation, then the greater share of the monthly distributions you will receive.
Is it correct to say that if someone sells their initial 15%, and another person buys and wraps it, they will receive the remaining 85%?
Any Flare tokens acquired and wrapped during the 36 month distribution period are eligible to receive a share of all remaining monthly distributions.
If I get 150 FLR and then wrap them into 150 WFLR, how many tokens will I have received by the end of 36 months if I continue to also wrap all additional FLR I receive as delegation incentive and normal FTSO rewards?
This depends on the average delegation rate and the performance of the specific FTSO data providers you delegate to. With an average performing data provider and an average percent delegating, you would in fact receive more than 1000 tokens over the 36 months. You can experiment with how different variables can affect your final token rewards using the reward simulator created by Flare.Space.
If I sell a portion of my tokens, am I still eligible to receive future distributions?
If you sell the first 15% and therefore do not hold any wrapped FLR, then you will not receive any future distributions. However if you only sell a fraction of your tokens, you will still receive a share of the remaining monthly distributions based on the amount of wrapped FLR that you still hold.
Exchanges & Wallets Questions
What happens if an exchange does not release the initial 15% by the time of the vote?
If your exchange has not released your tokens prior to the vote taking place, then unfortunately you will not be able to vote. But if the vote passes, as soon as you receive them, you will be able to wrap and receive a share of the remainder of the monthly distributions, plus the regular inflationary rewards from the FTSO if you also delegate to a data provider.
If I move my initial 15% from one wallet to another without delegating, do I automatically forfeit the remaining 85%?
If the vote passes, the wallet you choose to hold your WFLR in does not matter. You will be able to use whichever wallet holds your WFLR to claim your share of the monthly distributions. Future distributions are tied to the tokens, not the wallets that hold them. You only need to wrap your FLR to receive the distributions, but if you do not delegate to the FTSO then you would be missing out on the network rewards for supporting the provision of decentralized data.
What happens if a CEX delays the distribution of the initial 15% and holders miss a large number of epochs?
As long as tokens have been received by the time the vote is complete then you will have the opportunity to wrap and delegate and therefore receive the maximum rewards available to you. If you do not receive your tokens until after the monthly distributions have started, you will only be able to receive a share of the remaining monthly distributions.
How do I participate and receive the token distribution if my exchange doesn’t support wrapping and delegating of FLR?
Does moving my tokens off the exchange and into a different wallet count as selling?
No. You will likely need to do this to be able to wrap your FLR and receive the monthly distributions. The tokens can be claimed into whichever wallet is holding your WFLR during the previous month. If you split your tokens into two wallets, you will be able to claim the monthly distributions with both.
How does FIP.01 decrease the rate of inflation?
Previously, monthly inflation was to be calculated as 10% of the fully diluted supply annually. The proposal would adjust this to being calculated based on the lower figure of circulating supply. It will also cause the inflation rate to decrease over time, starting at 10% of circulating supply in year 1, then dropping to 7% in year 2 and then 5% for year 3 and beyond. A cap of 5B FLR per annum would also be implemented.