- Ripple financially backed startup Flare Networks will distribute a total of 45,827,728,412 FLR to XRP hodler.
- In the process, tokens will be distributed at a ratio of 1 XRP to 1.0073 Spark Tokens (FLR).
As Crypto News Flash previously reported, Flare Networks is a fork based on the digital asset XRP. The startup is financially backed by Xpring, the investment arm of Ripple, and will greatly expand the scope of XRP. Specifically, the project has developed a bridge to the Ethereum virtual machine, making smart contracts available on the XRP ledger. The hype of the project was mainly carried by the announced Spark token airdrop.
Flare Network will distribute 45,827,728,412 FLR to XRP hodler
In a new blog post, Hugo Philion, CEO and co-founder of Flare Networks, announced new details that the December 11 snapshot revealed that a total of 45,827,728,412 Spark Tokens (FLR) will be distributed to all eligible participants of the airdrop. This means that the tokens will be distributed at a ratio of 1 XRP to 1,0073 Spark tokens. The amount for the airdrop is calculated as follows:
Spark claimable=XRP ownedXRP total – XRP Ripple – XRP NPE ∗Distribution Amount,
The nearly 45 billion tokens comprise about 45% of the total FLR supply and will be distributed when the company launches the mainnet next year. Through the airdrop, Flare Networks wants to draw attention to its own project as well as its new features. The big goal is to boost XRP’s use cases by increasing interoperability with other ecosystems.
More than 50 of the largest exchanges worldwide, including Coinbase, Binance or Kraken, as well as wallet providers like Ledger are participating in the airdrop and will credit their XRP hodlers with the corresponding amount in FLR without any further effort from the users. Jed McCaleb, as well as the 54,172,271,587 XRP held in Ripple’s escrow account, are excluded from the airdrop.
According to Shehan Chandrasekera, Head of Tax Strategy at CoinTracker, U.S. citizens must report the airdrop on their tax returns to sufficiently and transparently meet all tax requirements.
Another airdrop set for January
Another project independent of Ripple and Flare Networks with the similar name “Flare Finance” has also announced an airdrop for January. The goal of Flare Finance is to build a multi-token ecosystem by allowing users to deploy XRP as well as other digital assets. To celebrate the launch of the network, Flare Finance will also execute an airdrop. According to the latest announcement, the airdrop will take place just under a month after the official launch and thus probably in January 2021:
1 month after the mainnet launch of #FlareNetwork, #FlareFinance will take a snapshot of all balances of those holding $FLR. 7-10 days after our snapshot, you will be the proud owners of both $FLR (Spark) and $DFLR (DAOFlare).
DFLR tokens can be used for governance purposes or exchanged for “YieldFlare” assets. The YieldFlare (YFLR) token will be the official token of the Flare Finance ecosystem and will have a maximum supply of 110,000,000. Flare Finance aims to provide the fastest and most cost-effective DeFi experience for XRP/FLR users to leverage the superior architecture of Flare Networks and the XRP Ledger.
In total, there will be 6 different products, such as the decentralized exchange FlareX, a governance platform as well as FlareFarm, a platform for YielFarming. In addition, there will be a platform for lending and borrowing (FlareLoans), a stablecoin (FlareUSD), and a risk-based investment fund (FlareMutual).