Flare Announces Plan to Distribute 100,000,000,000 Spark Tokens to XRP Holders
Flare Network’s long-awaited airdrop to XRP holders could be ready with a final plan confirmed.
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Flare, which has been planning to distribute Spark (FLR) to XRP holders for months, will reveal how the distribution will be for the first time. summarized.
Flare says that once the network goes live, each qualifying person will immediately receive 15% of their Spark tokens, followed by an average of 3% per month, continuing for a minimum of 25 months and a maximum of 34 months. He also says that this slow rollout is designed to avoid excessive selling pressure or other negative effects on the Spark token:
“There has always been a point where we make it clear that XRP holders are the best people to provide capital to support the reliable issuance of FXRP on Flare. The only way to ensure this fairly is the Spark distribution that we think will take place.
Rather than adopting Flare and Spark for the benefit it creates, a certain percentage of people will want to claim Spark simply because they believe it’s ‘free money’. To mitigate the negative effects of this dynamic, the amount of liquidity that can be released at any given time is limited by the extended unlock process.”
Flare Networks and its native token Spark aim to bring smart contract capabilities to various blockchain networks, starting with XRP and then Litecoin (LTC).
Flare previously said that they would let the community decide how the distribution should be done, but as a result, they made the opposite decision. The previous decision by the community on distribution was partly driven by concerns about tax implications. Flare said anyone who is concerned about their tax obligations can opt out of the 3% monthly distribution.