Flare (FLR)

N

Field

Content

General information

S.1

CASP Name

BB TRADE ESTONIA OÜ

S.2

Relevant legal entity identifier

984500L05A5D0E66Q610

S.3

Blockchain network name

Flare

S.4

Name of the crypto-asset

FLR

S.5

Consensus Mechanism

Federated Byzantine Agreement (FBA) / Probabilistic Proof of Stake with FTSO and State Connector

S.6

Incentive Mechanisms and Applicable Fees

Flare's consensus mechanism is built upon a novel combination of FBA and a probabilistic consensus protocol. This system achieves high throughput and fast finality.

Incentives:

Validators: A set of validators secure the core ledger by agreeing on transaction order and validity, earning FLR rewards for their participation. 

Flare Time Series Oracle (FTSO) Data Providers: A crucial component of Flare, FTSO providers submit real-world data (e.g., cryptocurrency prices) to the network. FLR token holders can "wrap" their FLR and delegate their vote power to these FTSO providers, who then receive rewards in FLR for accurate data provision. These rewards are shared with delegators.

State Connector Attestation Providers: These entities attest to external blockchain states, enabling cross-chain interaction, and are also incentivized in FLR. 

All these participants are crucial for the network's functionality and are economically incentivized to act honestly.

Fees: Transaction fees on Flare are paid in FLR and are designed to be low and predictable. All transaction fees are burned (removed from circulation), contributing to a deflationary pressure on the FLR supply and acting as a spam prevention mechanism. This design ensures that Flare is both highly functional and extremely energy-efficient.

S.7

Beginning of the period to which the disclosure relates

2024-01-01

S.8

End of the period to which the disclosure relates

2024-12-31

Mandatory key indicator on energy consumption

S.9

Energy consumption

~50,000 kWh per calendar year

S.10

Energy consumption sources and methodologies

The energy consumption of the Flare Network is primarily from the electricity used by its validator nodes, FTSO data providers, and State Connector attestation providers, along with supporting full nodes and RPC infrastructure. As it does not use energy-intensive Proof of Work, its energy footprint is minimal. Methodologies for estimation typically involve: 

Hardware power draw: Analyzing the typical power consumption of robust server hardware used by these various node types.

Node count and uptime: Scaling this hardware consumption by the number of active participants in each role and their continuous operational uptime.

Flare's novel consensus and oracle system are designed for computational efficiency, resulting in a very low overall energy demand.

Supplementary key indicators on energy and GHG emissions

S.11

Renewable energy consumption

n/a

S.12

Energy intensity 

~0.0183 kWh per transaction

S.13

Scope 1 DLT GHG emissions – Controlled

0 t CO2eq per calendar year

S.14

Scope 2 DLT GHG emissions – Purchased

~23.75 t CO2eq per calendar year

S.15

GHG intensity 

~0.0087 kg CO2eq per transaction

S.16

Key energy sources and methodologies

The energy sources for Flare's node operators (validators, FTSO providers, State Connector providers) reflect the diverse electricity grid mixes of their global distribution. These include a combination of conventional sources (e.g., natural gas, coal) and renewable/sustainable sources (e.g., hydro, solar, wind, nuclear), depending on the geographic location of the operators. Methodologies for assessing this would involve:

Geographic identification: Attempting to identify the physical locations of active network participants.

Grid mix data correlation: Integrating this location information with publicly available datasets on national/regional electricity generation mixes and their associated carbon intensity factors (e.g., from IEA, Ember, regional energy authorities).

S.17

Key GHG sources and methodologies

The predominant source of Greenhouse Gas (GHG) emissions for Flare is Scope 2 (indirect emissions from purchased electricity). Methodologies for estimating these emissions involve:

Energy consumption * Emission Factor: Multiplying the estimated total electricity consumption of the Flare Network (S.8) by the carbon intensity (grams of CO2 equivalent per kWh) of the electricity mix used by its node operators.

Focus on operational emissions: Calculations primarily focus on the operational energy usage of the various node types, which constitute the main energy-consuming components of the chain. Emissions from hardware manufacturing (Scope 3) are typically outside the scope of such operational reports.