Flare Network update for exchange partners

Flare Network update for exchange partners

Dubai, 9 September 2022 - With Flare mainnet genesis completed on 14 July 2022 and the network currently in Observation Mode, we want to provide an important update to all our exchange partners on a number of topics.

We look forward to working with you all to implement the Flare token distribution. If there are any questions, please reach out through our existing Telegram conversations.

Flare Token

The native token of Flare Network is to be called Flare, with the ticker FLR. It will not be called Spark.

Launch Status

When the Flare Foundation controls less than 33% of network validation power, the network will be sufficiently decentralized, Observation Mode will conclude, and the public Token Distribution Event (TDE) can occur. This is expected to happen in late September 2022. Further updates will be provided as we approach TDE.

Once token distribution is complete, Flare’s two key native interoperability protocols, State Connector and the Flare Time Series Oracle will be available to decentralized application builders:

> State Connector is the first consensus protocol purpose built for external blockchain data, which means it can use decentralized consensus to prove the state of other blockchains back to decentralized applications on Flare.

> The Flare Time Series Oracle (FTSO) is a highly decentralized oracle that uses the network to secure reliable decentralized price data provision to applications on Flare.

Native Delegation For Exchanges

We are establishing a playbook and white label solution to offer native FTSO provider delegation for exchanges. This will enable you to offer your customers additional utility and a native reward mechanism utilizing the Flare ecosystem.

Airdrop Ratio

Once 66% of the initial public token distribution is available to token holders, Flare Foundation will trigger a governance vote on Flare Improvement Proposal 01 (FIP.01). This contains a set of proposed changes that will be made to 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. The full detail is available in the FIP.01 blog post.

The important part for exchanges is that there are therefore two possible long term versions of FLR tokenomics and two possible airdrop implementations, dependent on whether the proposal is passed by the community or not.

Two possible public token distribution methods

The total amount of tokens allocated to the public distribution is the same regardless of whether FIP.01 is passed or not: 28,524,921,372 FLR.

The first portion of these tokens will be distributed prior to the FIP.01 governance vote taking place. Therefore, for both YES and NO vote tokenomics, at the Token Distribution Event, exchanges and self-custody wallets will receive 0.1511 FLR for every 1.0000 XRP held.

If FIP.01 passes, there will be no additional airdrops. The remaining public allocation of 24,246,183,166 FLR will be distributed in 36 equal monthly amounts directly to initial token holders who have wrapped their FLR into wFLR and delegated to the Flare Time Series Oracle.

If FIP.01 does not pass, there will be 29 additional monthly airdrops to each address that participated in the December 2020 snapshot. The first 28 of these airdrops will be in the ratio of 0.0302 FLR for every 1.0000 XRP held at the time of the snapshot. The final airdrop will be in the ratio of 0.0101 FLR for every 1.0000 XRP.

Exchange Website Content

It will be confusing for your customers if you have out of date Flare information on your websites. Please use the below detail to update your website.

About Flare

Flare is a new blockchain which presents developers with a simple and coherent stack for decentralized interoperability: scalable EVM-based smart contracts; highly decentralized price feeds; secure state acquisition from other blockchains via the first consensus protocol purpose built to acquire external data; superior bridges for smart contract and non-smart contract tokens; secured data relay; and horizontal scaling through a fully interoperable multi-chain ecosystem.

The Flare Token

The native token that will be distributed is called Flare, with the ticker FLR. We are no longer using the name Spark. This is to avoid confusion with an existing project, and therefore protect the community from interaction with the wrong token.

Flare is a crypto asset used on Flare Network for:

  1. Transaction fees in order to prevent spam attacks.
  2. Incentivized delegation to the Flare Time Series Oracle (FTSO) to support the provision of reliable decentralized price data.
  3. Collateral within Flare’s native bridging applications, FAssets and Layer Cake, by operating as an Agent or Bandwidth Provider respectively.
  4. Collateral for securing data relay.
  5. Collateral within third party decentralized applications built on Flare blockchains.
  6. Participation within network governance.