More than 81,500 XRP accounts, with a total of more than 17.5 billion XRP between them, have already been configured to receive the Spark token airdrop from the Flare Network, which will distribute the tokens to XRP holders in a ratio of 1: 1.
The Spark token will be used for governance on the Flare network through voting mechanisms, and token holders will be able to obtain a return on their holdings by committing Spark tokens to guarantee the issuance and redemption of FXRP, a protocol created for “ securely to allow XRP to be issued, used and redeemed without confidence in Flare. “
Token holders will also be able to get a return on their holdings by contributing data to Oracle’s Flare. The Flare Network itself is part of the Ethereum Virtual Machine (EVM) and does not derive titles from a token.
This will essentially bring Ethereum’s decentralized applications, smart contracts and decentralized finance to the XRP ecosystem. It is supported by Ripple’s investment arm, RippleX, formerly Xpring. The next airdrop saw the price of XRP go up, along with the number of accounts being created.
Speaking to CoinDesk, Jehan Chu, managing partner of Hong Kong blockchain investment firm Kenetic Capital, said:
“With the imminent launch of Flare, an XRP smart contract utility fork, the duo will attempt to challenge Ethereum’s dominance in decentralized finance and decentralized applications.”
There will be a total of 100 billion Spark tokens and 45 billion may be redeemed by existing XRP holders, excluding Ripple Labs itself. Major cryptocurrency exchanges, including Coinbase, Binance, OKEx and Bitstamp, have revealed that they will support airdrop. Those who took care of themselves saw their claim windows extended until June.
Another 25 billion tokens will go to Flare and 30 billion to a non-profit foundation called the Flare Foundation. The Foundation, it is worth mentioning, wrote in its constitution that it should be closed and all its Spark tokens burned if the token holders agree that their existence is no longer beneficial to the network.