Flow Foundation to Buy Back 50 Million FLOW
The Flow Foundation has announced a plan to buy back and burn 50 million FLOW tokens. The initiative is part of a broader strategy to strengthen the token's economics, which also includes continuous token acquisition and long-term inflation management. The actions are designed to improve liquidity and demonstrate a commitment to the ecosystem.
- The buyback and burn of over 50.3 million FLOW tokens is a direct response to a December 27, 2025, security breach where attackers exploited a vulnerability in the Cadence runtime to forge tokens, leading to a loss of approximately $3.9 million. - In addition to the buyback, the Flow Foundation is acquiring another 50 million FLOW from the open market to be held in its treasury as part of a sustained investment in the token's long-term health. - This token reduction strategy follows the permanent on-chain destruction of 87.4 billion counterfeit FLOW tokens in January 2026, which were created during the December exploit. - The FLOW token's price experienced a significant downturn in early 2026, dropping from around $0.45 in September 2025 to approximately $0.035 by late February 2026, a decline exacerbated by the security incident. - Major South Korean exchanges, including Upbit and Bithumb, are delisting FLOW trading pairs on March 16, 2026, which is expected to reduce liquidity and increase selling pressure on the token. - Flow's long-term economic plan includes a transaction fee update that went live in December 2025, designed to make the FLOW token net deflationary when the network sustains a throughput of 250 transactions per second. - The Flow network's 2025 roadmap included the "Forte" upgrade, and the immediate focus for Q1 2026 is on network stabilization and economic repair following the recent exploit. - The genesis block of the Flow network, created in June 2020, contained 1.25 billion FLOW tokens, and the token has an uncapped maximum supply with a controlled inflation model.
