XRP token holders are set to receive Spark (FLR) tokens from the Ripple-backed cryptocurrency startup Flare Networks, which has revealed it will airdrop a total of 45.8 billion FLR to XRP investors, after taking a network snapshot back in December.
As CryptoGlobe reported, Flare Networks will not distribute tokens to Ripple-owned accounts but will distribute tokens to Rippleworks, a charitable organization founded by Chris Larsen, a co-founder of Ripple. The tokens will be airdropped at a ratio of 1.0073 FLR per each XRP token investors held at the time of the snapshot.
It’s worth noting 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.
XRP holders will receive a second airdrop from Flare Finance – built on the Flare blockchain and designed to power swaps, stablecoins, yield farming, insurance, and asset-backed loans – via a snapshot of the Flare Network’s blockchain.
In a series of tweets, spotted by Daily Hodl, Flare finance revealed that one month after the Flare Network is launched, it will take a snapshot of the balances of those who hold FLR and distribute DAOFlare (DFLR) tokens to holders.
To interact with the Flare Finance ecosystem, users will then have to swap their DFLR tokens for YieldFlare (YFLR) tokens, the official ones to be used on the ecosystem. The Flare network, which will essentially bring Ethereum’s decentralized applications, smart contracts, and decentralized finance into the XRP ecosystem, will launch this year.
It’s supported by Ripple’s investment arm RippleX, formerly Xpring.
Featured image via Pixabay.
