How

The FTSO is enshrined in Flare’s core protocol, where Flare’s validators serve a dual role as both block validators and data providers. Every 1.8 seconds, with the creation of each block, FTSO uses a verifiable randomness algorithm to select a set of data providers to submit incremental feed updates. This selection process uses a stake-weighted algorithm – providers with more stake are more likely to be chosen, ensuring fairness.

FLR holders can delegate their tokens to data providers they trust, reflecting their confidence in the provider’s reliability and accuracy. Data providers who submit accurate feeds, closely matching the results of a commit-reveal process, are rewarded. These rewards are shared with the token holders who delegated to the successful providers.

This mechanism ensures that each FTSO feed is supported by around 100 independent data providers, selected by Flare users through delegated stakes, imposing a strict economic cost for misbehavior and maintaining the integrity of the data.

The FTSO offers up to 1,000 data feeds, with most of them available for free. This is enabled by the fact that it is built into the network, which unlocks design flexibility. Flare can then optimize the oracles for more efficient data handling and cost minimization.