Spark is the native token of the Flare Network, a system meant to bring Ethereum-like functionality to the XRP Ledger.
“Flare’s token, Spark is created through what may be the first-ever utility fork whereby the origin network, in this case the XRP Ledger, benefits through increased utility,” according to the team behind the smart-contract project.
Flare is attempting to expand the utility of XRP by allowing users to run smart contracts on Ripple’s native asset. Investors and traders who hold Spark can also leverage the new token as collateral to redeem assets in Flare’s ecosystem.
More than 81,500 XRP-holding accounts have been set up to receive a total of 17.5 billion tokens from the Ripple-backed Flare Networks’ upcoming airdrop.
Crypto investors who register their XRP in an eligible account will receive free Spark tokens in a 1:1 ratio when Flare holds the “snapshot” day on December 12th.
However, an increasing number of exchanges have said they will support the airdrop and distribute Spark governance tokens pro-rata to their customers based on their XRP holdings. Coinbase, one of the last high-profile exchange hold-outs just announced on Saturday it will accommodate the airdrop.
“Supporting new networks and their projects is important for not only meeting customer interest, but also the continued growth of the crypto ecosystem,” said Coinbase spokesperson Crystal Yang.
“The amount of Spark you’ll receive depends on how much XRP you had in your account at the snapshot time,” according to Coinbase.
Meanwhile, those who self-custody or store their XRP in a non-participating exchange can still snag Spark. In a recent post, XRPL Labs founder Wietse Wind says that XRP ledger account holders must have a private and key account for Flare. Wind notes that all account holders should prove ownership to be eligible. Flare has extended the claim windows to June for those who practice self custody.
Lastly, recipients will retain ownership of their XRP holdings while receiving the new tokens.