Flare Networks, a blockchain company backed by the payments startup Ripple, is rolling out a new crypto asset for XRP holders.
In a new blog post, Flare Networks CEO Hugo Philion says XRP holders other than Ripple can use their holdings to claim 1:1 amount of Spark tokens. The cryptocurrency works with the Flare network, which is designed to allow XRP holders to use smart contracts.
“The Flare Network is a new Turing Complete Smart Contract platform… integrating the Ethereum Virtual Machine. Its native token, the Spark, is generated through a utility fork of XRP. Furthermore, Flare uses the XRP encryption scheme, which can facilitate the usage of XRPL and Flare for XRP users.”
According to Philion, Spark serves as the collateral for the issuance of FXRP tokens, which is the fuel that powers smart contracts on Flare. The Flare Networks executive also says the blockchain features a layer two solution that enables the “trustless issuance, usage, and creation FXRP.”
Philion notes that XRP holders are the ones who will most benefit from the FXRP system. He says 100 billion Spark tokens will be created to mirror the existing number of XRP.
The head of Flare Networks also highlights that Spark holders can generate returns on their tokens whenever they use the crypto asset as collateral to issue and redeem FXRP while providing data to Flare’s time series oracle. In addition, Spark acts as a governance token that allows holders to determine the future direction of the Flare Network.