Here’s How XRP Holders Might Receive Flare Tokens After Distribution Threshold Is Reached

Flare Net­work has announced that the 66% dis­tri­b­u­tion thresh­old for the vote on FIP01 has been sur­passed. Vot­ing on the Flare pro­pos­al will start in one week, and the vot­ing peri­od will last one week as well.

The 66% dis­tri­b­u­tion thresh­old for the vote on FIP01 has been crossed. The 1 week notice peri­od starts now. Vot­ing will start in 1 week’s time and the vot­ing peri­od will last a week. Guides and infor­ma­tion on how to vote will be released pri­or to the start of voting.

— Flare ☀️ (@FlareNetworks) Jan­u­ary 13, 2023

This FIP01 pro­pos­al, if passed, con­sists of a set of changes that would impact 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.

In the vot­ing phase, 85% of all FLR belong­ing to Flare enti­ties and teams are escrowed and can­not vote; the Flare Foun­da­tion’s relat­ed enti­ties may not vote.

In a thread of tweets, Hugo Phil­ion, co-founder and CEO of Flare Net­work, high­lights the ben­e­fits and demer­its of the pro­pos­al for XRP hold­ers who par­tic­i­pat­ed in the 2020 snapshot.

Network/ecosystem ben­e­fits of FIP01:
- Incen­tivis­es net­work par­tic­i­pa­tion and new ecosys­tem entrants.
- Shifts FLR to those that par­tic­i­pate from those that don’t.
- Reduces over­all infla­tion.
- Incen­tivis­es infra­struc­ture providers.-> Safer, more decen­tral­ized network.

— Hugo Phil­ion ☀️ (@HugoPhilion) Jan­u­ary 14, 2023

He high­light­ed the demer­its of the pro­pos­al: “FIP01 neg­a­tives for 2020 snap­shot par­tic­i­pants — FLR must be wrapped to receive the full and final dis­tri­b­u­tion. Depend­ing on par­tic­i­pa­tion, you may end with less than expect­ed under the 2020 snapshot.”

XRP hold­ers would need to wrap their Flare tokens to receive full and final dis­tri­b­u­tion.
 
On the oth­er hand, the ben­e­fits are “it removes the risk of reliance on exchanges that may fail. Depend­ing on par­tic­i­pa­tion, you may end up with more FLR than expect­ed under the 2020 snapshot.”

Receiv­ing more FLR tokens is depen­dent on whether the lev­el of stak­ing on Flare is any­where near the indus­try average.

FLR to be distributed over next 36 months

The total num­ber of tokens allot­ted for pub­lic dis­tri­b­u­tion is 28,524,921,372 FLR, regard­less of whether FIP01 is approved or not. This equals a ratio of 1.0073 FLR for every 1.0000 XRP held.

The Flare token dis­tri­b­u­tion, which start­ed on Jan. 9, marks the first 15% of the over­all pub­lic token dis­tri­b­u­tion; the Flare (FLR) tokens were dis­trib­uted to eli­gi­ble users at a ratio of 1 XRP to 0.1511 FLR. The remain­ing 85% will be allo­cat­ed over 36 months.