How to Earn Money by Holding Crypto with Flare Network

Disclaimer: Ideas discussed in this article are not intended as financial advice. Investing in crypto markets involves inherent risks, including the loss of capital.

Stumbling upon the Flare Network and exploring their technologies was an eye-opening experience. In this article, I want to go over how people can purchase a cryptocurrency and hold it in order to receive idle monetary rewards without doing anything else. 

What is Flare Network?

Over the last 6 months I have been experimenting with a unique cryptocurrency network that offers a passive income strategy, namely the coin ‘Flare’. The Flare Network was built to allow different cryptocurrency blockchains, which normally operate independently, to share information and work together. Blockchains are large databases that store transaction data related to a cryptocurrency in a transparent and irreversible manner. Flare works towards achieving interoperability between these blockchains. However, this artsicle focuses on how Flare rewards their users through their incentive programs, apart from the Network’s technical purpose which is intended more for decentralized app developers. 

Reward Programmes

Flare users are rewarded for actively participating in the Flare ecosystem. Users have the ability to commit their Flare holdings to Flare’s blockchain network in exchange for rewards, while the liquidity they provide supports the operation of the aforementioned infrastructure. Flare implements this through 3 different programmes: 

• Staking
• Delegating
• The FlareDrops

To put it in simple terms, users first need to purchase some Flare, which is a cryptocurrency that is trading at $0.01507 per coin as of 20th October 2024. With a market cap of $760 Million, Flare ranks as the top 93rd cryptocurrency according to CoinMarketCap. 

Afterwards, users have two options: They can either stake their Flare, which helps support the security of the network, or delegate it to a chosen data provider that works to achieve the interoperability function. Understanding the ‘nitty gritty’ of how users receive these rewards is not too crucial, as the process is comparable to receiving interest on a savings bank account.

Users automatically receive the funds in their crypto wallets and have the ability to monitor their reward earnings through the Flare Portal interface. Your funds are ‘locked’ for a certain amount of time in exchange for rewards in the form of more Flare. Users maintain the ownership of their holdings and the ability to ‘unlock’ their funds, and stop receiving the rewards. 

Scalability

Many users choose to continuously partake in the programme in order to keep earning these rewards. As one would expect, holding larger quantities of Flare results in earning more rewards. If the holdings remain untouched by the user, the rewards would steadily increase and the total Flare token balance would compound over time. 

In addition to these models, Flare has another ongoing programme called FlareDrops. Holders of Flare are entitled to receive a monthly airdrop of Flare tokens, and this reward is much larger than the biweekly rewards gained through staking or delegating. With the first monthly distribution of airdrops taking place on March 17, 2023, Flare promised to keep giving out the FlareDrops across 36 consecutive months, up until January 2026.

My Experience and How Much I Have Earned

Having acquired a sum of 50,000 FLR, (short for Flare) I have been receiving the biweekly rewards and FlareDrops since May 2024, boasting an impressive 45.78% Annual Percentage Yield. (APY) Below is a table demonstrating the rewards I earned for the month of August, where I was delegating my FLR tokens.

Throughout August, holding $755 dollars worth of Flare has yielded me an additional $25.75 in the form of Flare tokens. To put things into perspective, I could withdraw these rewards – by swapping them back for USD at any crypto exchange such as OKX – or I could hold onto them and let my FLR balance grow over time. 

“So why not buy thousands of dollars worth of Flare and reap these awesome rewards each month?”

It’s important to remember that, although Flare creates value for its users through these initiatives, it is still prone to experiencing price fluctuations like any other cryptocurrency. While the amount of Flare rewards users may earn through these programmes will not diminish due to price fluctuations, the possibility of the token losing its dollar value itself is unavoidable.

At the current price, ( $0.01507) purchasing FLR tokens and staking them could generate a modest profit if prices hold steady. Participating in the program for several consecutive months could increase your holdings, but a dip in price might still result in a loss. Flare’s reward initiatives encourage users to hold their tokens, which helps reduce selling pressure of the Flare token and supports a more stable market.

The Future for Flare

I plan to keep participating in Flare’s programmes and receive these rewards for as long as I can. The number of users participating in Flare’s reward programmes are growing everyday, and you too can invest in some flare and earn these rewards through this guide. In terms of the future of Flare Network, I am excited for their upcoming projects and believe they can meet the expectations of their community.

Flare is still relatively new, slowly garnering the attention of different communities around the world and making its footprint on social media. Their track record of successful value creation tells me that great things are on the horizon for Flare, and a subsequent increase in the price of the token could go in-hand with the development of new tools and further innovations.

Featured Image: Coin Desk