As the crypto market shows signs of stability XRP (XRP) holders can prepare for claiming the Spark (Flare) token, the native token of the Flare Network. As we previously reported, the Flare Network is about to be launched, but an exact start date of the “utility fork” has not been announced yet.
Utility fork means that Flare’s native token, an algorithmic stablecoin, is generated by a fork of XRP. XRP owners receive the Spark token in a 1:1 ratio, which in turn means that 100 billion Spark tokens are created. Hereby, Spark is an independent network, however, the two ledgers have a special relationship to each other.
The Flare Network integrates the Ethereum Virtual Machine so that smart contracts can be executed on Ethereum using XRP via FXRP.
Payments for a smart contract can thus be made and received in XRP via Interledger that is integrated into Flare. In this regard, Spark is used to collateralize FXRP. People who use Spark and provide it as collateral earn fees.
Flare supporting exchange list. https://t.co/GuLVEpGggM
— Flare (@FlareNetworks) November 24, 2020
What is Spark Token?
XRP labs founder officially makes announcement about airdrop of Spark Token. XRPL account holder will receive spark token, which is users need to be claimed on their wallet. However more nearly 300 million XRP HODL in XRPL accounts. Spark token is nothing but native token of Flare Network i.e. fork version of XRP Blockchain. Flare network introduced to integrate with EVM i.e. Ethereum Virtual Machine that enable execution of smart contract-based transaction.
XRP Labs members and XRP investor or supported will receive Spark token in 1:1 Ratio. XRP labs developing new tool for self-custodial XRP holder for their Ledger Wallet user. However, 45 billion tokens will be allotted to holding in self custody and store in exchange i.e. non XRP Labs holders. As per report more than 5000 accounts signed up for claiming spark token in just 1 week of announcement. Non-custodial XRPL accounts expected to receive Spark token after launching of Flare network. However, user need users to need to create wallet before snapshot.
Once snapshot is taken then user will have 6 months to claim Spark token and if not then that token will be burned. Flare Network will be behind this project and XRP labs already launched tool i.e. XUMM and XRPToolkit for allowing user to claim token. Flare is said to be first ever turning complete FBA Network focus on scalability and low-cost transactions.
We predict the spark token will mirror XRP 1:1 but only time will tell.
Airdrop alert: XRP holders can claim the Spark (Flare) token
As Wind has now explained, all persons holding XRP tokens in a non-custodial wallet, as well as at a few exchanges, will be qualified to receive the Spark token. In addition, any user holding XRP on an exchange that does not support the airdrop will be able to initiate a withdrawal to an XRP Ledger account, such as the XUMM wallet of XRP Labs.
Wind has developed a tool for XUMM and the XRPToolkit (for Ledger Nano users) for this purpose. According to Wind, the distribution of the Spark token will be as follows. First, XRP owners have to set up an account for the Flare Network. Each account will have a public address (usually “0x…”-like) and a private key. The private key and address can already be generated.
XRP ledger account holders have then to prove ownership of an account by signing a reference that points to the account in the Flare Network. This reference is stored in a “MessageKey” field at account level in the XRP Ledger. This means that the address of the “r…” account in the XRP Ledger points to your “0x…” account in the Flare Network. In this respect, it is important to know that no private key needs to be entered during the whole process.
As soon as the Flare Network is ready, the Flare team reads all XRP ledger accounts pointing to Flare Network accounts, checks the account balance and distributes the Spark (Flare) tokens in a 1:1 ratio.
For example, users with 1,000 XRP will receive 1,000 Spark (Flare) transferred to the created account in the Flare Network. The tool for users of XUMM and the XRP Toolkit (for Ledger Nano) is implemented on the website: https://flare.wietse.com/.
Wind explained this:
Using my tool you will be guided through the process of storing a reference on your XRP ledger account to your (probably: to be generated) account on the Flare network. You can already use the tool today, even though the Flare network isn’t ready yet, and the Flare team didn’t launch their Spark token distribution programme yet.
Last Friday, Bitrue was announced as the first exchange to support the utility fork that will distribute Spark tokens to all XRP token holders.
Ripple CEO Brad Garlinghouse expressed his enthusiasm for the Flare Network during the “Cryptocurrency Town Hall” a few days ago and explained that “Flare combines the best of XRP (VERY fast processing), Ethereum (Smart Contracts), and Avalanche (for consensus), helping to extend the benefits of XRP and allowing developers to create Smart Contracts for new use cases such as loans and DeFi”.
Receiving Spark tokens
XRP ledger account holders will need an account (private key & account) for the Flare network. Private key & account can be generated already, to be used in the future on the Flare network once the network is ready.
XRP ledger account holders will prove account ownership by signing a reference, pointing at their account on the Flare network. This reference will be stored in a “MessageKey” field on the account level on the XRP ledger.
This means your “r…” account address on the XRP ledger will point at your own “0x…” account on the Flare network.
Once the Flare network & team is ready (they will announce this in advance), they will read all XRP ledger accounts pointing at Flare network accounts, check their balance and distribute an equal amount of Spark tokens to the Flare network account pointed at in the XRP ledger account.
Users with eg. 1000 XRP in their own account on the XRP ledger will then own 1000 Spark in their other account on the Flare network.