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HomeCrypto NewsRipple CTO Suggests Flare Networks Used And Dumped The XRP Community

Ripple CTO Suggests Flare Networks Used And Dumped The XRP Community

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Schwartz has expressed misgivings over the FLR airdrop.

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In a Twitter thread today, Ripple chief technology officer David Schwartz opined that Flare Networks used the XRP community to gain notoriety and discarded them afterward.

“I feel bad saying this,” Schwartz wrote. “I love the project and want the best for it and want to believe the best about it. But my honest opinion is that they leveraged the XRP community to grow and weakened their promises drastically when they felt they didn’t need it anymore.

The Ripple executive expressed this view as he poked holes at the perceived lack of incentives for holders to keep their airdropped FLR tokens for future rewards. Consequently, Schwartz now believes that the team only intended to give 15% of what it promised to the XRP community.

It bears mentioning that Flare Networks completed its first round of airdrops to XRP holders at the time of a screenshot in December 2020 by 11:59 pm UTC on January 9, per a press release from the team. During the event, the team distributed about 4.279 billion FLR to millions of XRP holders. Meanwhile, Coinbase users at the time of the screenshot will have to wait till later, but the team assures them that they will receive the airdrop within the first half of 2023.

Notably, the first round of airdrops represents 15% of the promised 28.5 billion of the 100 billion token supply.

Per the original tokenomics, XRP holders, at the time of the screenshot, should have received the 28.5 billion FLR directly over 3 years. However, the first Flare Improvement Proposal (FIP.01) now suggests that the XRP community only receives 15% during the Token Distribution Event while keeping the remaining 85% for staking rewards over the next 3 years. Notably, this proposal is yet to pass the governance vote, which is scheduled to kick off on January 14.

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Unsurprisingly, the proposal has sparked outrage in some quarters as some community members believe Flare Networks plans to go back on their promises after the 2-year wait for the airdrop.

Despite misgivings expressed today, Schwartz has asserted that they do not make the project bad or the team dishonest, adding that Ripple also adjusted some of its promises as XRP evolved. He clarified that he is just not excited by how things have played out with the token distribution.

At press time, FLR is trading at the $0.04371299 price point, up 4.2% in the last 24 hours but 71.2% lower than its peak of $0.150073 per CoinGecko data.

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Ammara
Ammarahttps://thecryptobasic.com/
Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

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