FIP.03: Launch the secondary FTSO reward band on Flare

FIP.03 proposes the addition of a secondary reward band for the Flare Time Series Oracle on the Flare network. This is the same change that was successfully implemented on Songbird after community approval of STP.02.

The objective of the extra reward band is to support increased decentralization of the FTSO system by increasing the number of data providers that receive rewards and are therefore able to cover their infrastructure costs.

The secondary reward band has been live on the Songbird canary network since March 2023. The Flare analytics team recently released a report reviewing the impact of the change. The report shows that the introduction of the secondary band increased the percentage of rewarded providers from approximately 25% to 66%, creating a positive impact on decentralisation of the FTSO on Songbird. This increase was achieved without significantly affecting the quality of the prices provided by the system.

Following the success of the implementation on Songbird, FIP.03 recommends making the same update on Flare. This illustrates the central purpose of the canary network, where a technology update was completed and validated on Songbird before a potential implementation on Flare.

Read the full details on the Governance Proposal Repository. Wrap your FLR before 22 June to participate in the vote. Voting will commence several days later on the Flare Portal.