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Here's How XRP Holders Might Receive Flare Tokens After Distribution Threshold Is Reached

Sat, 01/14/2023 - 14:06
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Tomiwabold Olajide
Voting on Flare proposal will start in one week
Here's How XRP Holders Might Receive Flare Tokens After Distribution Threshold Is Reached
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Flare Network has announced that the 66% distribution threshold for the vote on FIP01 has been surpassed. Voting on the Flare proposal will start in one week, and the voting period will last one week as well.

This FIP01 proposal, if passed, consists of a set of changes that would impact the distribution and inflation of the Flare blockchain's native token, FLR, together with changes in payout structure and recipients of the Cross Chain Incentive Pool.

In the voting phase, 85% of all FLR belonging to Flare entities and teams are escrowed and cannot vote; the Flare Foundation's related entities may not vote.

In a thread of tweets, Hugo Philion, co-founder and CEO of Flare Network, highlights the benefits and demerits of the proposal for XRP holders who participated in the 2020 snapshot.

He highlighted the demerits of the proposal: "FIP01 negatives for 2020 snapshot participants — FLR must be wrapped to receive the full and final distribution. Depending on participation, you may end with less than expected under the 2020 snapshot."

XRP holders would need to wrap their Flare tokens to receive full and final distribution.
On the other hand, the benefits are "it removes the risk of reliance on exchanges that may fail. Depending on participation, you may end up with more FLR than expected under the 2020 snapshot."

Receiving more FLR tokens is dependent on whether the level of staking on Flare is anywhere near the industry average.

FLR to be distributed over next 36 months

The total number of tokens allotted for public distribution is 28,524,921,372 FLR, regardless of whether FIP01 is approved or not. This equals a ratio of 1.0073 FLR for every 1.0000 XRP held.

Flare (FLR) Token Airdrop Distribution to XRP Holders Completed by Binance: Details

The Flare token distribution, which started on Jan. 9, marks the first 15% of the overall public token distribution; the Flare (FLR) tokens were distributed to eligible users at a ratio of 1 XRP to 0.1511 FLR. The remaining 85% will be allocated over 36 months.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.