The Spark Token (Flare Network’s Spark, FLR) is the native token of Flare Networks, a new company in which Ripple has invested. The Flare distributed network uses Avalanche consensus adapted to the Federated Byzantine Agreement. The Spark Token works with the Ethereum Virtual Machine. Thanks to this feature of Spark Token; With a scalable, secure and decentralized structure, it enables the use of smart contract applications in cryptocurrencies created on blockchains that do not have this feature.
So how does Flare Network work?
For example, let’s say you have 1000
; however, since the XRP Ledger does not have a smart contract feature like
tokens, you cannot use your XRP for transactions that require a smart contract. Using the Flare network with the new app, you can convert your 1000 XRP to 1000 FXRP to add a smart contract feature and execute your transactions. Currently, 75% of the volume of blockchain tokens cannot be used for decentralized financial transactions. Thanks to the Flare Network, this will be changed to other tokens, starting with XRP, to bring them to decentralized financial transactions and increase liquidity in the cryptocurrency world. In other words, as the coin with the fourth largest volume for Flare Network, we can say that it is an exciting step for the crypto money world in terms of bringing XRP to decentralized finance.
By the way, we can remind you that a similar application was carried out for bitcoin in 2019 with the Wrapped bitcoin (WBTC) token. WBTC, whose value is indexed to BTC at a ratio of 1:1, provided the opportunity to use the smart contract features used in the Ethereum network in this token, which is indexed to BTC. WBTC is important in that it was the first ERC20 token and was a precursor to other tokens.
When Will Spark Tokens Be Distributed?
Spark Token is not available for acquisition because it has not yet been distributed. However, Flare announced that the Spark Token distribution will take place on December 12 at 00:00 UTC by airdropping XRP holders according to the amount of XRP in their wallets. While participants will participate in the airdrop based on their XRP balance on Dec. 12, the distribution of the tokens is likely to take place in the first or second quarter of 2021 when the Flare Network launches.
How to Buy Spark Tokens?
The total supply of the FLR token is planned to be 100 billion, while up to 45 billion will be distributed with the airdrop, and the amount earned with the airdrop will be proportional to the amount of XRP held in the wallet. With the launch of Flare Networks, 15% of the airdrop will be distributed, and participants will be able to receive their remaining tokens in the next 25-34 months.
To participate in the Spark Token airdrop, it is enough to have XRP on an exchange that supports the airdrop. In addition, participants can request airdrops from their own Ethereum wallets by making the necessary configurations. The deadline for requesting the FLR Token airdrop is June 11, 2021.
What is the Value of a Spark Token?
It’s worth mentioning that since August, when the airdrop announcement was made, the gratuitous Spark Token distribution has increased the demand for XRP, reaching nearly three times the price of XRP in the process. Since only the XRP balances in their accounts on December 12 will be taken into account for the Airdrop and they do not need to hold XRP outside of this date when the balance will be questioned, it is possible to see selling pressure in XRP after December 12. As for the value of the Spark Token, we do not know it because it has not been released yet.