We announced our support for trading Spark [IOU] (XFLR) on December 21, 2020. Learn more about Spark and XFLR tokens in our frequently asked questions below.
What is Spark?
Flare aims to be the world’s first Turing complete Federated Byzantine Agreement (FBA) network. A protocol has been built on top of the Flare network to safely enable the trustless issuance, usage, and redemption of XRP on Flare, called FXRP. The general methodology of the protocol and the system that connects Flare to other networks is extendable to any non-Turing complete token. Flare’s token, Spark, will be created through a utility fork of the XRP ledger.. 100 billion Spark tokens will be created at the outset of the Flare network when it launches in 2021.
What is an IOU token?
IOUs allow users to buy, sell, and hold the native token of a blockchain that has not yet gone live with its final public network (“mainnet”). By creating markets for IOU tokens, price discovery for the underlying asset can occur before that asset becomes transferable over a live network. Once the underlying asset’s mainnet launches, users will be distributed an amount of the new asset corresponding to the number of IOU tokens they hold at a specified point after the mainnet launch date.
What is XFLR?
Spark [IOU] (XFLR) is a tradable IOU token on Poloniex that entitles the users who hold XFLR at a specified time in the future to receive Spark (FLR). Customers who held XRP during the Spark airdrop snapshot on December 11, 2020 at 11:59:59 PM UTC have received XFLR at a ratio of 1 XRP : 1 XFLR. The conversion ratio of XFLR : FLR will be dependent on the final amount we receive in the Spark airdrop. We will publish this ratio once the network launches and we convert XFLR to FLR.
How can I deposit or withdraw XFLR?
XFLR is an IOU token and cannot be deposited into or withdrawn from your account. Deposit and withdrawal functionality will be shown as “Disabled” in your Poloniex Wallet.
How do I claim my Spark tokens?
Once the Flare network launches, we will list FLR. The Flare network will be distributing FLR in incremental distributions over a vesting period. This means that all XFLR balances will be converted to FLR over time rather than all at once. Until we receive the full airdrop of FLR, we will continue to list Spark [IOU] (XFLR) and Spark (FLR).
Initially, the Flare network will distribute 15% of the total FLR airdrop to Poloniex and we will distribute the full amount of FLR we receive to XFLR holders. At that time, all eligible customers who hold XFLR will automatically receive FLR proportionally to their XFLR balance. As we distribute FLR to customers, we will deduct an equivalent amount of XFLR from their account. We will continue this process with each FLR distribution we receive until we have distributed 100% of the FLR airdrop amount.
How much FLR will I receive?
The amount of FLR you receive will be dependent on the final conversion rate from the Flare network. We will distribute all FLR tokens to XFLR holders proportionally at the time of distribution. For example, if you hold 5% of eligible XFLR on our platform during the snapshot, you will receive 5% of the FLR tokens Poloniex received after conversion. If you do not hold XFLR when we convert XFLR to FLR each month, you will not receive FLR tokens for that month.
Why would I want to trade XFLR?
The Spark airdrop has been highly anticipated for the XRP community. By trading XFLR, you can participate in FLR price discovery before the Flare network launches. Additionally, holding XFLR at the time of our future balance snapshot will gain you access to FLR mainnet tokens.
When does the Flare network go live?
While Poloniex can not guarantee a launch window for Flare, it is anticipated that the Flare mainnet will launch earlier in 2021.