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“Well-designed incentives can spark public interest and drive long-term value,” notes Flare, which bills itself as the "blockchain for data." This ethos informs Flare’s strategy—empowering users to actively contribute to blockchain security and scalability while they reap tangible rewards.
In total, 58.3% of the genesis Flare token supply is allocated to community incentives, including its rFLR Emissions Program. Here’s how Flare incentivizes active contributions to its fast-growing, data-centric ecosystem.
All Flare (FLR) token holders can earn rewards by contributing to Flare’s network. Through staking, delegating, or participating in liquidity pools, users can support critical activities like securing infrastructure, delivering accurate data feeds, and enhancing decentralized finance (DeFi) liquidity. These contributions are incentivized through three main reward streams.
FlareDrops is a monthly token distribution program to reward active engagement on the Flare network.
The FlareDrop rewards schedule. Image: Flare
Flare is distributing 24.25 billion FLR (24% of the supply) over 36 months, ending in January 2026. FlareDrops rewards are based on the amount of wrapped FLR (wFLR)—an ERC-20 version of FLR used in DeFi— or staked FLR, held in the previous month.
wFLR enables participation in DeFi while keeping eligibility for FlareDrops intact. And, by spreading the rewards over three years, Flare ensures sustained participation and attracts new users to the network.
The Flare Time Series Oracle (FTSO) is the backbone of Flare’s data-driven ecosystem, delivering accurate, decentralized information to power applications on the network. By delegating FLR to data providers, holders earn rewards based on data accuracy and provider fees while supporting reliable network data.
Delegated tokens remain liquid and can be undelegated at any time, offering flexibility to participants.
Staking FLR tokens helps secure Flare’s proof-of-stake blockchain by incentivizing validators responsible for maintaining network integrity. Validators also act as data providers, contributing accurate FTSO data as a condition for earning rewards.
Staking typically offers higher rewards than delegation because the tokens are locked for a set period. However, the process requires manual restaking when the period ends, making delegation a more flexible option.
Building on Flare’s existing incentives, Flare’s rFLR DeFi emissions program encourages the provision of deep liquidity, large reserves of key assets—stablecoins, FLR, and Ethereum (ETH)— critical for maintaining stable and efficient transactions across its DeFi ecosystem.
Deep liquidity ensures that large transactions can be executed without causing significant price changes, and is essential for collateralized lending, decentralized exchanges (DEXs), and cross-chain asset integration. For FAssets—Flare’s trustless bridge enabling non-smart contract tokens in DeFi—deep liquidity is crucial. It provides the collateral and trading stability required to onboard non-smart contract tokens like Bitcoin (BTC,) XRP, and Dogecoin (DOGE) into Flare’s DeFi ecosystem.
The Flare Portal lists dapps eligible for rewards. Image: Flare
An initial allocation of 510 million FLR tokens—part of Flare’s 20 billion FLR incentive pool—has been distributed to DeFi protocols and liquidity pools, chosen for retaining community participation while driving DeFi innovation. They include SparkDEX, a DEX with concentrated liquidity pools; Kinetic, a borrow-and-lend platform; and Sceptre, Flare’s first liquid staking protocol.
"Users who provide liquidity or participate in supported activities within these dapps receive rFLR rewards distributed by participating protocols via the Flare Portal. As the program expands, Flare aims to increase monthly emissions and add further protocols and pools.
Once claimed, rFLR rewards vest over 12 months, with 1/12 becoming withdrawable each month. However, early withdrawal of unvested rewards incurs a 50% penalty, so users are encouraged to wait for full vesting to maximize their returns.
Flare offers a number of incentives to strategically integrate network security and scalability through active user participation, by attracting liquidity, incorporating non-smart contract assets like BTC, and engaging its community.
As well as securing the network, these incentives also underpin the plaform’s vision to expand DeFi’s horizons through a data-driven future, offering an array of possibilities for those willing to contribute and innovate.
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