XRP holders are expected to receive the Spark airdrop on December 12th. However, it is not so clear how users can participate. In this guide, we will share with you all you need to know about the Spark token airdrop to XRP holders.
If you are using Binance, you can be sure that you will receive Spark tokens if you hold XRP. As explained by the exchange, Binance will support the Spark Airdrop program for XRP holders. Binance will take a snapshot to users that hold XRP.
The Spark airdrop is going to be rewarded on a 1:1 basis to XRP holders. That means that if you hold XRP at the time of the snapshot on Binance, then you are going to receive Spark tokens.
Take into consideration that Binance will be suspending deposits and withdrawals after the Snapshot is complete. However, you still be able to trade XRP during the airdrop. According to the exchange, the airdropped Spark tokens will be calculated as follows:
“User A = (Amount of XRP held by User A at the time of snapshot / Total XRP held by Binance at the time of snapshot) * Total SPARK received by Binance for the airdrop”
Furthermore, take into consideration that you should hold at least 10 XRP in order to receive Spark tokens. Nevertheless, Binance informed that the token of the Flare Network will have to go through the same strict listing review. In short, even if Binance is supporting Spark airdrop, they might nos support Spark trading.
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How to Receive Spark Airdrop Using Ledger?
Although it is possible for Ledger Nano S users to receive their tokens, it may be faster and easier if you do so through Binance. Why? Simply because you need to link your XRP address to the Flare Network. This could definitely affect the privacy of your XRP address that you safely store in your Ledger Wallet.
If you hold XRP in your Ledger wallet, then you need to have an account on the Flare network. You will have to prove ownership of your wallet by signing a reference that points at an account on the Flare network. In this way, this reference will remain stored on your XRP Ledger. This will exactly be stored in a “MessageKey” field.
As soon as you do that, you will be able to receive the Spark airdrop on December 12th.
WARNING: NEVER provide others with your secret keys, passwords, secret numbers, mnemonic phrases, seed phrases or anything else to claim Spark tokens. If you want to claim Spark tokens, the best thing you can do is to use Binance.
If you want to know what is the Flare Network, you can read our guide about it in the next sections.
What is the Flare Network?
Now that you know how to claim Spark airdrop tokens, we can move to understand what is the Flare Network. It is worth mentioning that the Flare Network is one of the latest financial solutions to be released to the cryptocurrency market.
The Flare Network is the world’s first Turing complete FBA network. The main characteristics are the following:
- It is scalable and it does not need a native token to be safe
- The network is fully integrated with the Ethereum Virtual Machine
- It is very efficient due to its low transaction costs
The Spark token is going to be the native digital asset to this platform. Now that you have claimed Spark airdrop tokens, you can start using them on this platform (once it is launched).
What is the Spark Cryptocurrency?
As we mentioned before, Spark is the native token of the Flare Network. It provides collateral for the trustless issuance of assets from non-Turing complete chains. XRP will be the first cryptocurrency to be used on the Flare Network.
The Spark cryptocurrency will also contribute to the Flare time series oracle and network governance. By using the Spark cryptocurrency, users will be securing, improving and guiding the network.
Moreover, this token increases the utility of XRP and also the XRP Ledger (XRPL). The most interesting thing about this virtual currency is the fact that there was no Initial Coin Offering (ICO) and no competing interests.
Spark Cryptocurrency Price
There is no current information on the Spark Cryptocurrency Price. Once you claim Spark airdrop, you will be able to exchange these coins in supported exchanges. The price of the digital asset will fluctuate according to supply and demand.
The demand will definitely depend on the expansion of the Flare Network, availability and more. Moreover, the number of exchanges supporting the Spark airdrop would help the digital currency.
We just now need to wait until December 12th to have a better idea of its price. Moreover, if you want to own a larger number of Spark tokens, you will have to own more XRP. These XRP tokens can be purchased in Binance. You can buy XRP with Euro following this guide.
Benefits to the XRP Ledger
The official release of the Flare Network and the Spark airdrop will definitely help the XRP Ledger. This will bring Turing complete smart contracts to XRP. In this way, it will be possible to avoid centralisation and basis risks that are associated with synthetics.
With the new Flare Network, it will be possible to use smart contracts and “supercharge the usage and utility of the XRP and ILP ecosystems.”
Understanding the Flare Network
Let’s say that you want to use XRP in order to mint FXRP on the Flare Network. You will be able to do so as an “originator.” Other users on the Flare Network will then be providing Spark tokens as collateral to the FXPR system. These are called network “agents.”
By using the Flare Time Series Oracle (FTSO), it is possible to provide information about the XRP/Spark rate. With this information, the Flare Network will define how many FXRP can be issued. This will provide clear collateralization levels.
The originator will receive FXRP tokens depending on the collateral she used in XRP. Every single time there is a collateral reservation as in this case, there will be a 0.1% fee. This is going to be paid in Spark tokens and it will be calculated on the XRP value.
There should be 2.5 times the value of the XRP being minted into the FXRP. Everything will be locked in Spark tokens. The originator then will be able to spend 50 FXRP to buy derivatives and other financial assets. Flare Network is one of the most advanced networks to be released to the market.