News // 10th December 2020

Flare Network’s Spark Token Airdrop Investor FAQ


 What is the Flare Network?

The Flare Network is an Avalanche-based blockchain network focused on extending XRP’s utility by bringing Ethereum’s smart contract capabilities.  In particular, the network integrates the Ethereum Virtual Machine to provide advanced smart contracts on the XRP network.  


According to Flare’s whitepaper, “the Flare Network is a distributed network running the Avalanche consensus protocol adapted to Federated Byzantine Agreement and leveraging the Ethereum Virtual Machine”.  In other words, Flare does not rely on money or economic incentives to secure the network; it uses the Federated Byzantine Agreement (FBA) to reach consensus.  A more technical understanding of the Flare Consensus Protocol can be found here.


What is Flare’s native token?

The Spark token, which was created by an XRP utility fork, is the native token of the Flare Network. Like other tokens, it is primarily used for spam control of the network (i.e. to prevent spam attacks).  In addition, the Spark token can be used as collateral within decentralised applications (DApps), contributor to an oracle or as a governance methodology on the Flare network.  More information on Spark’s use cases can be found in Flare’s whitepaper


What is the timing for Spark airdrop?

The Snapshot Date - 12/12/2020

The Flare Network will snapshot XRP balances on December 12th, 00:00 UTC.  The snapshot is meant to capture the XRP holdings of individuals who want to participate in the Spark tokens airdrop. 


The Distribution Date - Q1-Q2 2021 (expected)

The actual distribution date is not yet decided, however, the airdrop itself is anticipated to take place when the Flare Network goes live.  According to Flare Network's blog, “at network launch, each account that has claimed Spark will receive 15% of the total Spark for which they are eligible.  The remaining Spark claimable will be distributed over a minimum of 25 months and a maximum of 34 months.”


How will Flare Network’s Spark airdrop affect XBT Provider Certificates?

The Issuer considers it important to refer investors to its Airdrop Investor FAQ - which can be found here - airdrops, like hard forks, are evaluated on a case-by-case basis.  As disclosed in the Issuer's Prospectus, the Issuer has discretion as to whether to participate in and/or distribute the proceeds of any airdrops or forks. 


Based on its experience with similar events in the past (e.g., the Bitcoin Cash fork available here), and after careful evaluation of regulatory requirements, operation feasibility, costs and expenses, amongst other things, XBT Provider will not distribute any Spark tokens or any possible proceeds from the sale of such Tokens to the Certificate holders.  



 


Sources: 

https://flare.xyz/app/uploads/2020/08/Flare_Version_1.0.pdf

https://blog.flare.xyz/

https://flare.ghost.io/flare-consensus-protocol-an-explainer/ 

https://cointelegraph.com/news/flare-proposes-new-bridge-to-allow-xrp-to-be-used-on-ethereum

https://academy.binance.com/en/articles/what-is-spark-flr-and-the-flare-network

https://gatehub.net/blog/flare-network-faq/

https://support.gatehub.net/hc/en-us/articles/360016639800-GateHub-will-support-Flare-Network-s-Spark-token

https://medium.com/dcentwallet/update-on-spark-token-distribution-c514195b1c48



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