This post was written by Neil on May 3, 2022
How many days until Flare Network launch?
Updated June 28th
The Flare Network audit performed by Trail of Bits is complete and passed with no vulnerabilities. According to Trail of Bits: “The audit did not uncover any significant flaws or defects that could impact the confidentiality, integrity, or availability of a Flare node or the network at large.”
With this milestone, Flare’s mainnet genesis will occur on or shortly after July 11th, 2022, subsequent to a final audit of the token distribution smart contract code taking place the week of July 4th.
The network will launch in “observation mode”, during which time it will be tested and become fully decentralised. At genesis, the Flare Foundation will operate all network validators. Next, FTSOs from Songbird as well as new FTSOs will be able to join Flare and start submitting FTSO data. Validation power will thus pass from the Flare Foundation to FTSO providers that operate validators. Upon completion of observation mode, FTSO data providers will validate the network and will earn validation rewards. Observation mode will last for a minimum of 8 weeks until the point at which sufficient validation power has passed to external validators such that Flare Foundation is no longer in control of the network i.e. not more than 33% of validation power is controlled by Flare. During observation mode, inflation and rewards shall be zero in order not to prejudice participants; furthermore, the network state may be rolled back at any time.
At genesis, all initial token balances will be created. The Flare Foundation will hold all tokens that are attributable to all Flare-related entities and team. These tokens will be distributed at the public token distribution event (see below). The only token transactions during this time will be made for operational purposes, including funding and delegating to FTSOs and for system testing purposes. Each Flare address will be published.
Public Token Distribution Event and Further Distributions
Upon exiting observation mode, the initial token distribution of 15% will take place. It is at this point that self-custody token recipients will be able to access and use their tokens and that exchanges can distribute the tokens to their users.
The remaining distribution will start subsequent to a governance vote, mentioned as FL02 in the Flare rollout details below, on how to conduct the distribution. The governance proposal will be published on or before mainnet genesis. The vote will take place on Flare at the earlier event where at least 75% of the initial distribution is capable of voting or 6 months from the public token distribution have elapsed. In the case where tokens have gone to exchanges, this means that the exchanges will have distributed the token and made it possible for users to withdraw them.
Inflation will commence after observation mode completion and will be set to 10% per annum calculated monthly on the total unlocked supply. The governance vote will then dictate future inflation.
The following roadmap outlines the anticipated order of events on Flare.
FL.01 Flare Launch: Main network launch and distribution of the initial 15% of tokens.
FL.02 Governance Update On Token Distribution: The team has been working on a governance proposal regarding the token distribution. The proposal intends to achieve three things:
Remove the risk of an exchange failing to pass on future token distributions.
Substantially increase the incentive to engage with the network.
Provide positive tax implications such that a majority of recipients can avoid generating a taxable event until they claim their token allocations and withdraw them from the system. This would give the recipient autonomy for when they wish to trigger a tax event.
The governance vote for this proposal will only take place once 75% of the initial 15% distribution is freely available to take part in the governance vote. In the case of exchanges, this means that the token will have been distributed and can be withdrawn from the exchange. The proposal details will be published with ample advance warning before Flare launches.
FL.03 FAsset A Launch: This version of the FAsset system enforces the Agent to hold 100% of the underlying token on the underlying chain. This allows for a lower collateral ratio on Flare than 2.5X. This is the version of the FAsset system that will most likely be used for “Self Minting”.
FL.04 Songbird Bridge Launch: This will allow all Songbird tokens to be bridged to Flare and vice versa.
FL.05 LayerCake Bridges Batch 1 Launch: The first batch of LayerCake bridges, likely with Terra & either Ethereum or Solana.
FL.06 FTSO Performance Upgrade: The FTSO system will undergo optimizations with the aim of increasing both the number of possible price series and the number of possible data providers into the 1000’s.
FL.07 FAsset B Launch: This version of the FAsset system uses a 2.5X collateral ratio on Flare, but allows the agent to hold less than 100% of the tokens on the underlying chain
FL.08 LayerCake Bridges Batch 2 Launch: The second batch of LayerCake bridges. These will focus on connecting Flare to all major smart contract chains and connecting key smart contract chains to each other.
The team at Flare recently held their first “Community Call” where they presented a complete overview of the network and what they aim to achieve with it’s launch.
It’s a really informative call, you can watch the full replay here.