Airdrops used to be an integral part of the cryptocurrency ecosystem. In recent years, this concept has seemingly lost some of its appeal. Flare Networks is bringing it back through its Spark airdrop for XRP users.
Rekindling the Airdrop Excitement
Over the past few years, there have been dozens of airdrops. Holders of a specific crypto asset would receive another one based on their current holdings. Especially Ethereum users have seen their fair share of new and unknown airdropped tokens. It is because of this approach the concept has lost a fair bit of its momentum. Other than a few efforts here and there, things have certainly dropped off a bit.
Flare Networks is intent on bringing back the excitement surrounding an airdrop. Its Spark token will be introduced to existing XRP holders. Flare is a utility token linked to Flare Protocol. The token is a pegged stablecoin primarily designed for DeFi use cases. As such, XRP will be entering the decentralized finance stage, albeit through a rather unusual approach.
To generate the stability of Flare, it will derive value partially from burning XRP. This creates further integration with Ripple‘s native ecosystem. Under the hood, the Flare Network uses XRP encryption and address schemes. This ensures users can access both assets through one single key. Overall, an interesting turn of events.
Who Will Receive Spark Tokens?
Any XRP owner can claim their Spark airdrop by simply setting their account up to receive it. The ones excluded from this airdrop are Ripple Labs and select previous employees, A fair distribution, considering how Ripple Labs still has billions of XRP under its control in escrow contracts. Allowing these tokens to receive Spark would be counterproductive across the board.
There will be a total of 45 Billion Spark tokens. Dividing these tokens will occur based on the XRP Ledger snapshot and the balances recorded within. Higher XRP balances will, by default, receive a larger portion of the airdrop. Several exchanges have yet to confirm whether they will support the issuance of Spark tokens, however.
In fact, only three exchanges have confirmed they will actively credit Spark tokens. AnchorUSD, Bitrue, and Uphold are confirmed at this point. Funds held on other exchanges may need to be moved to a native wallet before the airdrop occurs. It is possible more trading platforms will signal support, albeit they have very little time to effectively do so. Any tokens not collected or credited within six months following the issuance will be burned automatically.