Following an almost two-year wait, Flare has started distributing its FLR tokens to eligible XRP holders. The long-awaited distribution has generated massive discussion in the community as members interacted about the airdrop before the announcement.
Flare Begins Token Distribution
Starting Monday, Flare airdropped more than 4.28 billion FLR tokens to eligible XRP users who held at least one token during the December 2020 snapshot. Accordingly, Flare conducted the airdrop on a 1:1 basis, which implies that an FLR token is exchanged for every XRP held by users.
Furthermore, the airdropped tokens represent 15% of the total supply of the assets in the project, with the remaining distribution scheduled to begin in the next three years. In addition, FLR holders are also eligible to vote on how future airdrops will be distributed on the network’s governance platforms and participate in proposing changes to some aspects of the project.
At the start of the initiative, the tokens were priced at 5% because of the low liquidity on MEXC Global crypto exchange before increasing to 15 cents as top exchanges like OKX and Kraken joined the ranks, thereby boosting its liquidity.
However, data from CoinGecko revealed that the value tumbled to a low of 2 cents and was recently quoted at 4 cents on the same platform. Meanwhile, the asset has seen a spike in its trading volume earlier this week, with inflows reaching a massive $34 million.
At its inception, Flare sought to become a decentralized finance (DeFi) platform utilizing XRP tokens. But in a twist of events, the network has transitioned to a Layer-1 blockchain protocol and an Oracle solutions provider.
It is worth noting that Layer-1 refers to the base protocols like Ethereum and Solana. On the other hand, oracles are third-party platforms that provide services by fetching data from outside blockchain protocols to merge with internal blockchain protocols.
Will The Flare Network Be Widely Used?
As a DeFi-based platform, Flare Network can offer decentralized applications (dApps) timely information across the various blockchain protocols to aid their optimum performance. However, the primary use case for the network in the dApp ecosystem is to provide inputs for decentralized applications and their related platforms.
According to expert views, the network is widely expected by crypto investors and anticipated by DeFi platforms due to the challenges of gaining consensus in the DeFi space. Furthermore, advanced DeFi platforms will likely keep developing and implementing incentivized models and cryptographic proofs to enhance fault tolerance and network sync.
This is where Flare Network comes in, as it is well-equipped to handle the tasks as a Federated Byzantine Agreement platform. On the other hand, the Flare token (FLR) is designed to prevent spam attacks through transaction fees.
The token ensures that the Flare Network is free of congestion during transactions. Other use cases of the FLR include providing on-chain data, facilitating seamless payments, and building other trustless applications on different protocols.
Despite being a new token, the FLR has recently handled more than 268 million transaction requests.