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Excited for FLR's official launch? Find out how the Flare Network is intending to be the next big spark for cross-chain interoperability.

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The Flare Network is designed to provide 

 (XRP). The native token of Flare Network is Flare (FLR), created to maintain consistent usage costs and facilitate decentralized finance (

) use cases. Here's a closer look at Flare Network and its native FLR token.

 (EVM) based interoperable blockchain system built on the 

 (PoS) consensus mechanism. Flare Network is made up of two interoperable protocols – State Connector and the Flare Time Series Oracle.

r allows for consensus on data from external blockchains to be made directly on-chain, and the 

(FTSO) is a decentralized oracle that provides off-chain time series data such as cryptocurrency prices, updated rapidly at a 3-minute interval. Put together, decentralized applications (

) on Flare Network can use timely information across blockchains easily, though the main use case for this network involves providing inputs for DeFi platforms.

The reason why Flare Network is widely anticipated by DeFi platforms — as well as crypto investors — is because of the difficulties of obtaining consensus in a standard decentralized system. The most advanced decentralized networks are tasked with implementing incentivization models and cryptographic proofs to display Byzantine fault tolerance and synchrony. Flare Network is well-equipped to handle these tasks as a 

 protocol with its own system of trusted nodes enabling true decentralization. The Federated Byzantine Agreement is a consensus mechanism that networks like 

Previously known as Spark (FLR), Flare Network's native token is now referred to as Flare (FLR). The purpose of this token is to make sure that spam attacks are prevented via transaction fees. After all, if transactions were completely free of charge, users would be able to spam and congest Flare Network with pointless transactions. 

FLR has several other uses apart from spam control and payments within the Flare Network. When wrapped into WFLR, it achieves more programmable functions like collateral in DApps on Flare blockchains, delegation to FTSO, and participation in governance. 

When it was still known as the Spark token, FLR had the additional function of providing data via an on-chain oracle. Combined with its delegation and governance uses, it could be used to build the Spark Dependent Application (SPA), which accommodated trustless token representations on different networks. An example would be the FXRP token, a trustless version of the XRP token. However, this application has since been made redundant with the introduction of FAssets.

Flare Network was set to be launched in phases. After over two years of development, Flare Network was finally launched on Jul 14, 2022 as a soft beta on a private observation mode. By Sept 30, Flare Network had commenced its public observation mode. 

15% of FLR tokens, amounting to 4,278,738,205 FLR, is slated for distribution via the Flare Network’s Token 

, Binance, and OKX, will be eligible to receive the FLR tokens. After the initial airdrop, the rest will be sent out monthly over 36 months. 

The total distribution amount is calculated based on a snapshot of XRP holdings on Dec 12, 2020. For every 1 XRP, 1.1511 FLR will be distributed. Hence, eligible XRP holders can claim more than one FLR token for every XRP token. The airdrop is slowly being rolled out, in order to make sure that users don't instantly sell all of their FLR tokens after receiving them (which would likely lead to a massive price drop).

While many XRP owners are interested in using Flare because of the utility created by these tokens, a small percentage of individuals are only looking to claim FLR because it’s essentially “free money.” Another step that’s been taken to mitigate the potential for negative effects from the airdrop involves limiting the amount of liquidity available on the market at any given time. The lengthy unlock process naturally reduces total liquidity.

To make sure that glitches and other technical issues are kept to a minimum during the Flare Network launch, the reputable firm known as 

 performed a comprehensive audit, which began on May 16, 2022 and ended after the first week of June. On Jun 16, the results of the audit were announced. The audit found no significant defects or flaws that could negatively impact the network, allowing for a proper launch on Jul 14, 2022.

2020 Flare Network Sees An Update in 2022

Flare Network was first introduced in 2020 and was meant to launch that same year. The purpose of the first iteration of Flare Network was to create a chain that would accommodate a few tokens from L1 networks that could be used alongside smart contracts. However, Flare Network quickly decided to pivot away from its original direction. By expanding their scope and performing additional research and engineering before the Flare Network launch, the Flare Network team was able to build something much more promising.

The latest Flare model offers advancements in cross-chain functionality with decentralized systems. Before now, token bridging was only possible by using systems that were mostly centralized. As such, token bridging was effectively a digital version of the standard banking model. Meanwhile, the fully decentralized options were considerably slower, which meant that investors were tasked with choosing between a slow system and an unsafe one.

Flare Network is designed to be an advanced network that features cross-chain interoperability. This system will facilitate a fully decentralized cross-chain future, which is considerably safer than the current alternative. The open protocols that Flare Network provides allow developers to create many different kinds of interoperability solutions. At the moment, Flare Network itself has developed two interoperability products, F-Assets and Layer Cake, with its third product, Relay, still in production. Flare Network’s goal is to connect everything, while still maintaining a decentralized system.

The rollout phase of the three interoperability products mentioned above is coordinated directly by the Flare Network team. To make sure that the Flare ecosystem has the level of connectivity that it requires to grow and thrive immediately after launch, Flare Network is providing developers with a comprehensive incentive program, the 

, and has also developed a canary network, 

, for the testing of their products and protocols.

The Flare Network and the FLR coin have already been met with optimism by the crypto community because of how the system works, and what it will do for cross-chain interoperability. Once Flare Network is introduced, interoperability without any amount of centralization becomes possible. This network is designed to integrate EVM, a system that can convert smart contracts into a list of instructions that computers can properly read. As such, the network can run Turing-complete smart contracts. This term means that nearly every type of computational task can be run as long as the system has enough memory for the process.

Once the network is up and running, it will create a well-realized ecosystem of DApps, which ensures that smart contract networks can properly scale. Flare Network is based on Avalanche, a consensus protocol that works well with the Federated Byzantine Agreement mentioned above. Because of how this system is designed, it doesn't rely specifically on PoS to ensure that the network remains secure.

 outfits non-smart contract blockchain tokens with smart contract functionality. Some of the tokens that can gain smart contract functionality with Flare include XRP, DOGE, BTC and LTC.

 is a unique addition to the Flare Network that helps to create decentralized bridges to connect smart contract platforms. For instance, Flare can be connected to Solana, though Flare actually doesn't even need to be part of the bridge. Third-party chains between blockchains secured by Flare such as Solana and Ethereum can also be bridged with each other. With Layer Cake, F-Assets can be used on Flare and any third-party chain integrated into Flare.

This feature of the Flare Network involves the safe and proper relaying of all types of information between any chains. The information that can be relayed includes off-chain data. These relays are secured via the State Connector. One use case involves a relay being set up between Solana and FTSO prices.

To gain a more in-depth understanding of the Flare Network, it's important to compare the FLR coin with the ETH coin which now uses the PoS consensus mechanism following the 

. With the move to PoS, validators who are responsible for staking this token will essentially provide security for the 

 Network as a whole. As such, Ethereum's security largely depends on how much of the token is currently staked. However, this requirement isn't necessary with the FLR coin.

By eschewing a mechanism like PoS, the FLR coin can have many different uses. This would be challenging, and potentially dangerous, for systems like Ethereum, which use the token for security reasons to expand its use cases. Because of the way the FLR coin was designed, it has more versatility without needing to take security into account.

FLR was released in the markets on Jan 10, 2023 at $0.04. FLR is considered to be an inflationary token. FTSO will pay out any newly minted FLR coins. Based on its original token distribution plan, the annual inflation is set at 10% each year of all FLR tokens.

However, Flare Network has initiated a governance proposal regarding its token distribution, the 

proposal, to reduce both short-term and long-term inflation. Should the proposal be passed, the inflation will be adjusted to 10% in year 1, 7% in year 2, and 5% in year 3 onwards, capped at 5 billion FLR tokens per year. 70% of the tokens are allocated to its FTSO rewards, 20% to its validator rewards, and 10% to the default Attestation Provider Set of the State Connector.

, which begins with the main launch of the network as well as the distribution of the first 15% of FLR coins. The next phase of development involves the FIP.01 proposal as mentioned above. The purpose of this proposal is not merely to improve the long-term economics of the token. There are many added benefits, such as increasing incentives for users to engage with Flare Network, eradicating the risk of an exchange not passing on token distributions, and better token liquidity management.

Keep in mind that the vote on the governance proposal is only set to take place after 75% of the 15% distribution occurs. The next step that the FLR coin and network will take involves the Songbird bridge launch, which allows Songbird tokens to bridge directly with FLR coins. The final stage of the road map involves the launch of batch two of Layer Cake bridges. These bridges will ensure that Flare is connected to every popular smart contract chain.

Flare Network’s system offers tangible cross-chain interoperability benefits that aren't available with any other network, providing all networks the ability to create decentralized bridges with one another. Even if a bridge doesn't lead to or from Flare, the Flare Network will be able to secure the bridge.

Since Flare Network’s FLR tokens already have strong connections to established cryptocurrencies, you can be confident in making an FLR investment. The many benefits of investing in FLR tokens include:

In general, it's impossible to predict Flare Network’s Flare token price over the next few years. However, the structure that the Flare Network has taken means that the FLR coin should be relatively consistent. FLR is comparable to other Layer 1 coins like ETH.

Looking specifically at ETH, it had consistent growth in the first few years that it was on the market. The value of Ether would eventually increase rapidly at the beginning of 2021. FLR is likely to have a similar trajectory, which means that the coin's market cap should grow at a steady rate over the next few years.

We hope that our guide to Flare Network has helped you understand what it is — and how its native FLR tokens are further advancing the industry and providing other networks with the opportunity to achieve fully decentralized cross-chain interoperability. 

Flare Network (FLR): A Spark for Cross-Chain Interoperability

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