It has been made rather easy by the fork causing a 1:1 drop of Spark to XRP.
While the price of the Spark token at its airdrop time is unknown - but expected to be less than the price of XRP - the amount that will be airdropped is known. Spark token and the Flare Network could well be a solid choice for DeFi going forward, which would drive the price up. The DeFi space has exploded in 2020 and looks to be finding its foundation going forward. Looking at the role of the token and its place in the burgeoning ecosystem, there is certainly room for a utility token that bridges to Ethereum and offers another path to DeFi.
Currently, XRP is experiencing a big price surge thanks in part to the Spark announcement and is trading at around $0.62. The official website claims that there is no fixed value for spark token, but there is evidence of a number of exchanges supporting this project which will mean a marketshould bloom for it.Īs has happened with forks in the past, the price of the newly forked coin is bound to be a lot lower than the token it was forked off. In terms of a starting price when it goes live and is available to the general market, the prediction is quite speculative currently as there is no set price.
#WHEN WILL SPARK TOKENS BE DISTRIBUTED FREE#
How much is the XRP fork worth?īecause many people will be receiving this free token airdrop by the simple virtue of holding XRP, there will be a lot of questions about its value at launch - and even how its value will change after the airdrop. The final figure to be determined by the airdrop will become clearer when a snapshot is taken on December 12 when it will be determined how many Sparks one will get based on how many XRP they hold. The balance 55 billion Sparks will go to Flare Networks Limited and Flare Foundation. This means that with XRP having 45 billion, 45 billion out of a total of 100 billion Sparks will be airdropped to XRP holders - just under half of the tokens. However, there is a set amount of Spark tokens that will be created - and that figure is 100 billion. The current circulating supply of XRP is around 45 billion. This means of distribution indicates that the creation of Spark Tokens airdropped will of course closely mirror what is currently available in XRP. The initial issuance of Spark Tokens will be given to those who currently hold XRP in the form of an airdrop. The Spark tokens do have their roots in XRP though as FXRP is minted on Flare from XRP on the XRP Ledger and because of this, it can then be settled back to the XRP Ledger. When there is an issuance of FXRP and the oracle system is used, there are opportunities where a level of cash flow can be provided to Spark token holders. These tokens will also be used to generate useful data on Flare through an oracle system, and they are also used for network governance and spam prevention. The role of the token is to colaterize the trustless issuance of FXRP on Flare. This allows the new network to deploy existing Ethereum applications on Flare and allows the network to be integrated in decentralized Finance. The Spark token comes from a new company, called the Flare Network, which is a distributed network running the Avalanche consensus protocol adapted to Federated Byzantine Agreement and leveraging the Ethereum Virtual Machine. However, Spark token is quite different from this, and actually has nothing to do with Ripple. What is Spark token?Ĭurrently, XRP’s main utility has been towards cross border payments and internal banking settlements as this is the aim of Ripple, the parent company. The amount of XRP dictates the amount of Spark that a person will have. Spark is being handed out only to people who have an XRP balance at 00:00 GMT on 12/12/20. Because FXRP is minted on Flare from XRP, on the XRP Ledger, and can then be settled back to the XRP Ledger, there is something to look forward to for XRP fans and holders