Ripple-backed cryptocurrency startup Flare Networks has announced it plans to airdrop Spark (FLR) tokens to Litecoin (LTC) holders and bring smart contract capabilities to the cryptocurrency often referred to as the silver to bitcoin’s gold.
According to a tweet the startup published, Flare will be integration LTC ahead of the network’s launch in Q2 of this year, which will allow LTC to be used “trustlessly on Flare with Ethereum style smart contracts.”
Flare has added more details will be revealed next week, and although a lot is still unclear this likely means developers will be able to use Litecoin on the Flare network to be able to create decentralized applications (dApps) similar to those found on the Ethereum network.
This would allow developers to bring the decentralized finance (DeFi) ecosystem to LTC holders without having to create a tokenized version of the cryptocurrency on the Ethereum network. Flare has revealed it will reduce the token allocation for the Flare Foundation by 5 million Spark (FLR), so the tokens can be airdropped to LTC participants.
The Flare Foundation is a non-profit organization, and has written in its constitution it must be wound down and all of its Spark tokens burned if token holders agree its existence is no longer beneficial to the network.
Spark tokens are to be used for governance on the Flare network through voting mechanisms, and token holders will be able to earn a return on their holdings by committing Spark tokens as collateral to secure the trustless issuance and redemption of FXRP, a protocol built to “safely enable the trustless issuance, usage, and redemption, of XRP on Flare.”
Flare is set to airdrop 45 million FLR to XRP token holders. The network integrates with the Ethereum Virtual Machine (EVM) and does not derive safety from a token. Flare is supported by Ripple’s investment arm RippleX, formerly Xpring.
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