Mickey B Fresh premiered his first video titled “Unlocking Financial Energy” – The Discussion Begins. This serves as a great introduction into what Flare Networks is trying to accomplish with a focus on earning rewards via delegation of Spark (FLR) in the Flare Time Series Oracle (FTSO) and the minting of FXRP. Check out the video below:
Mickey featured two graphics in the video created by him, which we will now dive into deeper. The first of these is a representation of the Flare Networks integration with other blockchains and crypto assets. As you can see in the figure below, Flare is already integrated with XRP Ledger and the Litecoin blockchain, which allows XRP and LTC to be trustlessly minted as an f-asset on the Flare Network for a 5% fee to start until a governance vote is held to adjust this. The fee is paid in the native asset being minted to the agents running validators on the Flare Network and native asset’s chain. It rewards them for posting the collateral in FLR at a 2.5x value of the native asset being minted and for running the necessary infrastructure to act as validators. Minters of an f-asset will be able to redeem the native asset at any point in time for a nominal fee of around .1%. Additionally, Flare is looking to integrate the Bitcoin and Stellar blockchains most likely sometime after launch, which will require a governance vote from FLR holders. The figure also shows how Ether can be brought onto the Flare Network with the coming Flare Finance FlareWrap product. Finally, you can see an outflow from Flare back to the XRP Ledger, which represents the ability of assets minted on Flare to be traded on the XRPL Decentralized Exchange (DEX).
In the second graphic, we can see how rewards will be distributed through different pools on the Flare Network. The FTSO rewards pool will act as an inflation mechanism for all of Flare. The initial inflation rate is set at 10% per year from the originally minted 100B FLR. This means that 5B additional FLR will be minted in the first six months until a governance vote is held to determine the inflation rate going forward. Around 833M FLR will be distributed through the FTSO rewards pool per month in this initial time frame going toward FLR holders who provide accurate data feeds to the FTSO. The FLTC rewards pool will only go to participants who have minted FLTC, which comes from the native asset, Litecoin. This rewards pool will total 5B FLR that was diverted from the Flare Foundation. However, a certain undisclosed threshold will have to be met for rewards to flow from this pool to the minters of FLTC. And then this brings us to the general f-asset rewards pool, which will at minimum consist of 12B FLR to start with the possibility of up to 20B more unclaimed FLR being added to it by the end of 6/11/21. The general rewards pool will only go to minters of FXRP until more blockchain integrations with Flare are approved. However, we are unsure presently at what rate the rewards will be delivered from the general f-asset and FLTC pools. The rewards mechanism offers an extremely unique value proposition to those that take advantage early on to significantly benefit from the timed release of FLR tokens.
We see Flare as having the potential to act as the sun of the crypto solar system. It possesses the ability to deliver financial energy to dormant capital across the globe like the sun provides energy to its surrounding planets in turn bringing forth life. We hope that you find Mickey’s new channel informative and this website as a solid supplement to the knowledge covered in his videos.