Over 81,500 XRP accounts, with a total of over 17.5 billion XRP between them, have already been set up to receive the Spark token airdrop from the Flare Network, which will distribute the tokens to XRP holders on a 1:1 ratio.
Spark tokens will be used for governance on the Flare network through voting mechanisms, and token holders will be able to earn a return on their holdings by committing Spark tokens as collateral to secure the trustless issuance and redemption of FXRP, a protocol built to “safely enable the trustless issuance, usage and redemption, of XRP on Flare.”
Token holders will also be able to earn a return on their holdings by contributing data to the Flare time series oracle. The Flare Network itself integrates the Ethereum Virtual Machine (EVM) and does not derive safety from a token.
It will essentially bring Ethereum’s decentralized applications, smart contracts, and decentralized finance into the XRP ecosystem. It’s supported by Ripple’s investment arm RippleX, formerly Xpring. As CryptoGlobe reported the upcoming airdrop has seen the price of XRP surge, along with the number of accounts being created.
A total of 100 billion Spark tokens will exist, and 45 billion will be claimable by existing XRP holders, excluding Ripple Labs itself. Top cryptocurrency exchanges, including Coinbase, Binance, OKEx, and Bitstamp, have all revealed they will be supporting the airdrop. Those who self-custody have seen their claim windows get extended until June.
An additional 25 billion tokens will go to Flare, and 30 billion are going to a non-profit foundation called the Flare Foundation. The Foundation, it’s worth noting, has written in its constitution it must be wound down and all of its Spark tokens burned if token holders agree its existence is no longer beneficial to the network.
Featured image via Pixabay.
