XRP token holders will receive more Spark (FLR) tokens from Ripple-backed cryptocurrency startup Flare Networks, which has revealed that it will launch a total of 45.8 billion FLR to XRP investors, after taking a snapshot of the red in December.
As previously reported, Flare Networks will not distribute tokens to accounts owned by Ripple, but will distribute tokens to Rippleworks, a charity founded by Chris Larsen, co-founder of Ripple. The tokens will be distributed at a rate of 1.0073 FLR for each XRP token that investors have at the time of the snapshot.
It is worth noting that Spark tokens will be used for governance in the Flare network through voting mechanisms, and token holders will be able to earn a return on their holdings by pledging Spark tokens as collateral to secure trustless issuance and redemption of FXRP, a built protocol. to "safely enable the trustless issuance, use and redemption of XRP in 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 get security from a token.
XRP holders will receive a second Flare Finance airdrop, built on the Flare blockchain and designed to power exchanges, stablecoins, yield agriculture, insurance, and asset-backed loans, through a blockchain snapshot of Flare Network.
In a series of tweets, detected by Daily hodl, Flare Finance revealed that a month after the launch of the Flare Network, it will take a snapshot of the balances of those who hold FLR and distribute DAOFlare (DFLR) tokens to holders.
1 month after the main network launch of the #FlareNetwork, #FlareFinance will snapshot all balances of those who hold $ FLR. 7-10 days after our snapshot, you will be proud owners of both $ FLR (Spark) and $ DFLR (DAOFlare)
– Flare Finance (@FlrFinance) December 11, 2020
To interact with the Flare Finance ecosystem, users will need to exchange their DFLR tokens for YieldFlare (YFLR) tokens, the official ones that will be used in the ecosystem. The Flare network, which will essentially bring Ethereum's decentralized applications, smart contracts, and decentralized finance to the XRP ecosystem, will launch this year.
It is backed by Ripple's investment arm, RippleX, formerly Xpring.