Welcome back to Mickey B Fresh’s series on the Flare Network! In Episode 2, Mickey discusses the functions and economics behind the Spark (FLR) token. FLR is the native asset of the Flare Network. It serves as collateral for the minting of f-assets. Additionally, it possesses two detachable votes that allow it to be used for data estimates to the FTSO and in governance voting on parameters like the inflation rate, f-asset collateral ratio, and creation fee for f-assets.
Video Date: 1/29/21
Hi mickey B and Patty… Could you please answers these questions thanks…
1.Is Extra (FLR) only (created/Generated) to reward Governance Voters cryptographically in the protocol and cant be created to prompt supply on the market?
2. If i convert XRP to FXRP and put into a Flare Finance Pool if the value of my XRP goes from $0.50 to $1 will the automatically in real time give me more value in that pool
3. When i convert my XRP in to FXRP does my XRP leave me wallet and I no longer have the (right) to that XRP ?
Thanks so much you do a lot for this community
Alright let me try to break this down for you Luke:
1. All newly minted FLR after launch so anything over the initial 100B supply will be delivered through the FTSO rewards. It’s possible there could be a governance vote to restock the f-asset rewards pool after a couple of years but idk how likely that will be.
2. Liquidity pools are for earning fees from my understanding. If you put FXRP & FLR into a two-sided pool and the price of FXRP appreciates compared to FLR, then when you exit the pool you would end up with more FLR and less FXRP than you initially deposited. Basically, the value you put in the pool remains roughly the same throughout the life of your position. I would look into how impermanent loss works as I am still wrapping my head around that aspect.
3. If you mint FXRP, you know longer are in custody of your XRP but you have the right to reclaim it at any time of your choosing as the originator. Check out this link to see how a scenario would play out if the agent side of the transaction defaults on redemption of your XRP:
https://www.thedefistandard.com/flare-network/f-assets/
Lastly, you could always swap out of your FXRP into a stablecoin instead of redeeming the XRP if you were looking to sell which would be more efficient.
Great questions and let me know if anymore come up from what I said.
Hi mickey i was hoping you could answer a question for me.
I registered for the snap shot in november for spark tokens on my nano ledger x. However since then i have sold xrp and bought xrp and now i have twice as much xrp than i did when i registerd for spark snap shot in november last year. So do i need to register again so flare can see the new amount of xrp i own which is double the amount from the time of snapshot last year. I have read that we have until june 2021 to register. And I have also read that you can update your message key and flare address at any time before june 2021.
So does this mean on my xrp ledger account i should do the registration process again or would i need to use a different nano ledger and set up another account on it for xrp to do this.
I cant find a answer for this anywhere so your my last hope.
Fingers crossed.
Cheers
Hi Simon – the only XRP that is accounted for in the Flare, Spark airdrop was those in one of your wallets on 12/12/20. Anything added after the fact will not be counted. If you already went through the claiming process, then you are good to go. Otherwise, you can visit the sites below to do this for your nano ledger.
flare.wietse.com
xrptoolkit.com
Hope this helps. Thanks for visiting the site.
Thanks patty..
Scenario……
Luke… Converts (XRP 100 at $0.6 ) to (FXRP -5%) puts his FXRP into FlareFarm earns a little bit of yield all good….. Then XRP Rockets to $5 i’m stuck in the pool earning interest off my $0.6 XRP to FXRP conversion rate.
Week later……
Luke: Starts Crying and Converts his FXRP back to XRP and its only worth the ..$0.6 XRP… like when he first converted it… and not worth the $5 XRP its at now ?
Thanks so much for your time I’m new to DIFI there’s a lot to learn i think these are the questions on most newbies minds 🙂
Thanks patty I do understand now reading your blogs 👍 personally I wouldn’t jump in with minting all my xrp straight away I think it’s best to wait and see how it functions . For a new system that’s a lot of trust you give flare network . Thank you 🙏
thanks patty i finally got it after reading your blog 🙂 personally i wouldn’t convert all my Xrp to use fxrp early on with a new system i couldn’t trust the Flare network fully ..Thanks so much!
please can you remove the last comment i just put i dont want my last name there thanks
You will probably be happy to know that Flare Network is going through security audits currently. It should help with any concerns, but I definitely get where you are coming from.
Hey Mickey,
I follow your YouTube channel and l know that you always have great advice to give
I hold some XRP in a Xumm wallet, that participated in the snapshot in Dec 2020.
What is the best procedure for me to prepare to receive the spark tokens?
Will they be airdropped into the wallet or will I have to transfer them to an
exchange? If so which exchange do you recommend?
Hey Derek – the Spark will airdropped to the ETH address you used in the message key field of your XRP accounts. Bifrost will be a solid option as a “hot” wallet. Also, D’Cent seems to be one of the better hardware wallet options at this point.