Flare Network’s much-anticipated airdrop to XRP holders appears to be set in stone, with a final plan for distribution confirmed.
Flare, which has planned for months to airdrop Spark (FLR) tokens to holders of XRP, is for the first time outlining how the distribution will happen.
Once the network goes live, Flare says that each eligible holder will immediately receive 15% of their claimable Spark tokens, and then claim an average of 3% per month, carrying on for a minimum of 25 months and a maximum of 34 months.
Flare says the slow rollout is designed to try and prevent excessive sell pressure or other negative effects on the Spark token.
“It has always been our stated position that the best people to provide capital to underpin the trustless issuance of FXRP on Flare are the people who own XRP. The only way to achieve this fairly is, in our opinion, the distribution of Spark that is taking place.
Rather than embracing Flare and Spark for the utility it creates, a certain percentage of people will wish to claim Spark only because they believe that it is ‘free money.’ To reduce the negative effects from this dynamic, the amount of liquidity that can be put into the market at any one time is therefore limited by the extended unlock process.”
Flare Networks and its native Spark token aim to essentially bring smart contract capabilities to various blockchain networks, starting with XRP and then Litecoin (LTC).
Flare previously said they would allow the community decide on how distribution should be done, but ultimately decided against it.
The previous decision to let the community decide on distribution was partially fueled by concerns over tax implications. Flare says anyone concerned about tax obligations can opt out of the 3% monthly distributions.
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Aron Alliston
