Flare Network’s XRPFi Incentives Jump 34% as 10.2 Million rFLR Tokens Distributed Among Users

Flare Network distributed 10.2 million rFLR tokens to users in September 2025, a significant increase from the 7.6 million distributed in August. This 34% monthly growth shows that more people are using Flare’s pools and protocols to earn rewards while participating in XRPFi—decentralized finance built around XRP.

The rFLR token serves as Flare’s reward mechanism for users who provide liquidity to decentralized exchanges, lend assets, or participate in other DeFi activities on the network. The every-increasing distribution of the reward token each month indicates expanding user activity across Flare’s ecosystem.

What’s Driving the Growth?

Flare introduced FXRP, a smart-contract-compatible version of XRP, which for the first time allowed XRP-owners to interact with DeFi tools by using their asset in these applications. XRP lacks native support for smart contracts, but FXRP gets around this limitation by making a 1:1 parity-backed version to work on the EVM compatible network of Flare.

The first release capped the amount to 5 million FXRP in the first week to ensure stable network operation. To icrease wide-scale adoption, Flare offered rFLR rewards to large DEX pools on SparkDEX and BlazeSwap. There, it provided incentives of up to 50% per year for USDT/FXRP trading pairs.

This strategy worked and attracted a huge pool of new users from the retail and institutional landscape. Users can now lend, trade and borrow using XRP without leaving the ecosystem of XRP Ledger. With composability, FXRP can be seamlessly utilized on Flare DeFi apps – ranging from lending markets to stablecoin minting to liquid staking.

Institutional Acquisition Providing Much-Needed Momentum

And companies are finally taking notice. Everything Blockchain was the first public company to utilise Flare’s infrastructure for balance sheet optimization by adopting XRPFi for treasury yield management. MoreMarkets introduced an “XRP Earn Account” that lets you automatically deploy XRP into Flare’s DeFi strategies via the Firelight protocol, enabling the reward transition from XRP back to XRP seamlessly.

These institutional integrations are important as it shows that XRPFi is working outside of retail speculation. Companies dealing with serious money are opting for Flare’s infrastructure to generate yield to XRP holdings proving security and reliability on Flare’s platform.

Flare granted 2.2 billion FLR tokens to encourage the adoption of FAssets through lending services, DEXs, and yield products. This ecosystem of user-centric incentives is a sustainable reward system, backed by long-term incentives on users who are interested in participating in the ecosystem encouraging consistent growth instead of conventional farming practices.

What the Numbers Mean?

The jump from 7.6 million to 10.2 million rFLR distributed monthly is a 34% population increase in just 30 days. This growth rate implies that the ecosystem is still in the early stages of growth, where each new user or integration of a protocol leads to further network effects.

Flare’s total value locked surpassed $170 million earlier this year, demonstrating sustained capital trust beyond short-term yield farming. This increase in TVL, coupled with the rise in rFLR distribution suggests true ecosystem development versus short-lived incentive participation.

Conclusion

Flare Network’s nearly 35% growth in the distribution of rFLR shows that XRPFi is gaining real traction. By allowing XRP to play a role in DeFi by way of FXRP, Flare has opened new use cases for one of crypto’s largest assets by market cap. The increasing institutional adoption and expanding user base indicate that XRPFi could be a substantial part of the larger DeFi landscape, and finally give XRP holders the programmability they have been missing.

Source