Spark Token, the native token on the Flare network, will be distributed to all XRP holders on December 12, 2020.
Spark Token is the native token of Flare. A portion of the supply is airdropped to XRP holders – including those on Binance. All you have to do is hold your XRP on Binance, and you can get your share of the airdropped tokens.
The Importance of this event is Medium and could ensure quite some gain to the XRP holders and boost the ROI for their token.
FXRP is a trustless representation of the XRP token on the Flare Network. It can be created and redeemed by XRP holders through smart contracts.
The system also relies on participants who put up Spark Tokens as collateral and earn fees during the creation and redemption of FXRP. This, combined with the potential arbitrage opportunities, should ensure that the 1:1 peg between XRP and FXRP is maintained.
Remember when we talked about how Flare enables smart contract capability on networks that don’t natively support it? That’s exactly what’s going on with FXRP. It allows XRP to be used with smart contracts and without the need for a central party to issue wrapped tokens. In other words, in a trustless manner.
