Flow Foundation to Buy Back and Burn 50M Tokens

- The 50.34 million FLOW tokens burned on February 23, 2026, were acquired between December 27, 2025, and February 22, 2026, using both open-market purchases and Flow Foundation treasury funds. This burn permanently removes approximately 3% of the total FLOW supply from circulation. - This token burn is a direct response to a December 27, 2025 security exploit where an attacker created a significant number of counterfeit tokens. Although the attacker only moved approximately $3.9 million in assets off-network, the burn of legitimate tokens is intended to counteract any potential dilution from the incident. - In addition to the burn, the Flow Foundation has committed to purchasing at least another 50 million FLOW from the open market to be held in its treasury as a long-term investment in the ecosystem's health. - The token burn and buyback are part of a larger strategy for "long-term inflation management," which aims to make the FLOW token net deflationary if the network sustains a throughput of 250 transactions per second. - Following the announcement of the burn, the price of FLOW increased by 4.24% on February 24, 2026, to $0.0364, showing a positive market reaction despite a broader downturn in the crypto market. - This strategic move comes after a significant price decline for FLOW in early 2026, which saw the token's value drop to around $0.035 by late February, partly due to loss of investor confidence following the December security breach. - The Flow network recently surpassed 40 million unique user accounts and 950 million total transactions as of early February 2026, indicating continued user adoption on the platform. - Several major South Korean exchanges, including Upbit and Bithumb, announced the delisting of FLOW in February 2026, citing security concerns following the exploit, which impacted the token's liquidity and market access.