Flow Foundation to Buy Back and Burn 50 Million FLOW Tokens
The Flow Foundation has announced a plan to buy back and burn 50 million FLOW tokens as part of a broader strategy to strengthen the token's economics. The initiative also includes continuous token acquisition to improve liquidity and a new long-term inflation management policy. The actions are designed to demonstrate the foundation's commitment to the ecosystem's native asset.
- The buyback and burn, which permanently destroyed 50,343,896.87 FLOW tokens on February 23, 2026, represents approximately 3% of the total token supply. - This action is the final step in a remediation plan following a December 27, 2025 security incident where an attacker created counterfeit tokens. The Foundation is buying back and burning legitimate tokens to offset counterfeit ones that were mixed into the supply on decentralized exchanges. - Prior to this burn, the Flow Foundation had already destroyed over 87.4 billion counterfeit tokens in January 2026 as part of the recovery from the security breach. - The new inflation management policy aims to make the FLOW token net deflationary if the network can sustain a transaction rate of 250 transactions per second. - Flow's monetary policy includes an annual inflation rate to reward stakers, which transaction fees are designed to offset; if fees exceed the target reward rate, the surplus is held to counter future inflation. - The Flow blockchain was created by Dapper Labs, the company known for NBA Top Shot and CryptoKitties, to support large-scale consumer applications. - This tokenomics adjustment comes as the FLOW token faces delistings from major South Korean exchanges Upbit and Bithumb, scheduled for March 2026.
