There are three core ways in which you can earn a passive income with Flare's native protocols.
FTSO vote delegations
Validator staking
FlareDrop distributions
Let's explore each if these in a little more detail, so you can start earning rewards and compounding your wealth.
Before we get started, a point worth noting is that both $FLR and $SGB are inflationary tokens. That means the total supply increases over time. The Tokenomics page offers a more detailed summary of the inflation mechanisms in place on both Flare and Songbird.
On Flare, 70% of the total amount from the annual inflation is allocated to the FTSO rewards pool. Any $FLR token holder can earn a portion of these rewards, by participating in the FTSO system and delegating votes to a data provider.
The process of delegating your votes does not put your tokens at risk in any way. They are not locked for any period, so can be freely moved around at any time, bearing in mind that this would cause any delegations to be removed.
The same mechanism is in place on Songbird, allowing you to earn $SGB rewards. The key difference is that, on Songbird, 100% of the total inflation is allocated to the FTSO rewards pool.
UYS were part of the original set of data providers, when the Songbird network went live in September-2021. To-date, we have not missed a single epoch on either Songbird or Flare. The reward rates we offer are very competitive and you can delegate your votes to us, via the Flare portal. We are currently working on a new version of our delegation app and hope to release it very soon.
Similar to the FTSO system, a portion of the inflation is allocated to a validator staking pool. This is currently set at 30% of the total allocation amount.
You can earn rewards from this pool by staking your tokens against a network validator. In contrast to using you tokens to delegate votes to FTSO data providers, when you stake tokens against a validator, they are locked for a period of time. More details about the staking limits and other information can be found here.
UYS have been validating blocks on the Flare network since July-23 and were in the initial group of entities to do so, in phase-1 of Flare's transition towards becoming a Proof-of-Stake (POS) network. You can get started with staking using any of the following apps; FlareStake, Bifrost and Solidifi.
The third way you can earn rewards as a $FLR token holder, is through a distribution mechanism called FlareDrops.
To participate in FlareDrops, all you need to do is either wrap your $FLR tokens into $WFLR, or stake your $FLR tokens to a network validator. That's it! By doing this, you will get a proportional amount of the 24b $FLR tokens that have been allocated to this distribution pool. Tokens are distributed in monthly blocks, up until February 2026.
You can find much more information on the FlareDrop background, process and dates by checking out the Tokenomics page.
The above three ways in which you can participate in the Flare ecosystem and earn a passive income relate only to the core protocols built by the Flare Networks team. There are many additional ways in which you further participate, with third-party services and applications. A comprehensive list of the entities building on Flare and Songbird can be found at the Flare Builders site, which neatly categorises all the different projects they have listed.
So what next? Well, if you think you have enough information and want to get started straight away, then head straight to the Flare Portal, where you can stake, wrap, delegate and claim. As mentioned we are currently working on a brand new Rewards App that we should have live soon.
If you would like to learn more about the network and processes, then a good place to start is here. You can also reach out to us, via socials or email, if you have any specific questions, and our team would be happy to help.