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Key Takeaways
- Flare is a Layer-1 oracle network that bridges the gap between blockchains and the internet, allowing developers to build interoperable applications.
- Flare distributed some of its FLR tokens to XRP holders on various exchanges in January 2023. The remaining tokens will be released over the next three years, with the allocation method decided by the community.
- While technical analysis suggests a potential price increase for FLR, reaching higher targets would require a large market cap.
What Is Flare Network (FLR)?
Flare Network (FLR) is a Layer-1 blockchain designed to bring smart contracts and interoperability to existing blockchains, specifically targeting those that lack this functionality.
How Does Flare Network (FLR) Work?
Underlying Technology
Layer-1 EVM Blockchain
Flare is a Layer-1 blockchain that utilizes the Ethereum Virtual Machine (EVM), which makes it compatible with existing Ethereum smart contracts and developer tools.
Proof-of-Stake (PoS)
Flare uses a Proof-of-Stake consensus mechanism to secure the network. Users who stake their FLR tokens help validate transactions and earn rewards.
Core Protocols
Core Protocols
State Connector
This protocol allows Flare to access information from other blockchains securely. This enables developers to build dApps on Flare that leverage data from external chains.
Flare Time Series Oracle (FTSO)
This protocol provides decentralized price feeds and data streams to dApps on Flare. Unlike centralized oracles, FTSO eliminates the risk of a single point of failure for data.
Key Functionalities
Interoperability
Flare acts as a bridge between different blockchains, allowing them to exchange data and assets.
Smart Contracts
Developers can leverage the EVM compatibility to build secure and scalable smart contracts on Flare.
Data Availability
dApps on Flare can access reliable and decentralized data through the State Connector and FTSO.
Flare Network (FLR) Token And Tokenomics
Tokenomics
The FLR token is the native cryptocurrency of Flare Network. It is used for:
- Staking
- Governance
- Transactions
- Data access
Token Details
Max Supply ∞
Circulating Supply 36,784,030,644 FLR
Current Price $0.03534
Market Capitalization $1,298,557,080
This information is current as of March 28th, 2024, and the token’s price, market value, and available supply may fluctuate.
Distribution
- Initial distribution (15%) – The first 15% (around 4.28 billion FLR) were airdropped in January 2023. This airdrop was based on a snapshot of XRP holdings on December 12th, 2020.
- Remaining distribution (85%) – The remaining 85% (around 24.25 billion FLR) are being distributed over 36 months (3 years) in a process called FlareDrop.
- Schedule – These FlareDrops happen every 30 days, starting on March 17th, 2023, and ending on January 30th, 2026. You can claim your tokens on the Flare Network website during the designated claim window.
- Eligibility – To be eligible for a FlareDrop, you must have held Wrapped FLR (WFLR) for 23 days before the claim day.
- Unclaimed tokens – Any FLR not claimed within 67 days of a distribution gets burned.
Where Can I Buy Flare Network (FLR)?
Bybit – This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.
Coinbase – Coinbase is an American-based cryptocurrency exchange that allows you to buy cryptocurrencies using various payment methods, including bank transfers, debit cards, and wire transfers.
Kraken – A reputable exchange known for its security and compliance, Kraken offers a lot of trading pairs with various funding methods, including bank transfers and stablecoins.
Flare Network Technical Analysis And Price Prediction
Looking at the weekly chart, we can see that FLR flipped bullish in October 2023 and has been on an upward trend. However, right now, we are at resistance at the $0.045659 mark, and we need to break and close above that price level to continue to the upside. Once the $0.045659 price level has been established, then we can look for the next higher targets, such as $0.079157 and $0.259622.
However, we also need to consider the token’s market cap and tokenomics. Realistically speaking, for FLR to reach $0.259622, it would need a market capitalization of roughly $9.55 billion at its current circulating supply.
Additionally, FLR’s total supply will constantly grow until 2026 due to the ongoing distribution of remaining tokens, which could put downward pressure on the token’s price, making some of the predicted price targets harder to reach.
Final Thoughts
Flare Network aims to enable smart contracts on existing blockchains to access real-world data. Flare’s long-term success will depend on developer adoption and the ability of the FTSO system to deliver reliable data securely. It’s still in the early days, so it’s important to carefully consider the risks and potential rewards before investing in this project.
Via: 2Usethebitcoin.com
