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Flare Network has raised $11.3 million in its latest round of funding led by Kenetic Capital. Coinfund and Grayscale’s parent company Digital Currency Group were among other firms that participated in this round. The distributed network will utilize the proceeds to provide smart contract functionality to blockchains that do not support the feature out of the box.
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The round attracted several companies like LD Capital, cFund, Wave Financial, Borderless Capital, and Backend Capital. Litecoin founder Charlie Lee and Terra co-Founder Do Kwan also took part in it.
Flare Network Aims to Offer Smart Contract Utility to Blockchains
Flare Network is targeting its smart contract utility at blockchains such as Dogecoin, Litecoin, XRP, and XLM, all of which currently lack native support for it. Flare’s own token Spark (FLR) aids governance procedures, allowing individuals to carry out voting for networks that should be integrated with collateral for the issuance of coins by networks that lack smart contract utility.
The network’s CEO, Hugo Philion, believes that Flare has the potential to bring added utility to existing blockchains and ecosystems. He states,
“The investment brings into the Flare ecosystem key participants in the investment community, together with major exchanges, market makers, blockchain founders and entrepreneurs that have an interest in driving meaningful developments and participation on Flare.”
Philion declared that Flare would support smart contracts with the mainnet launch. He also added that a governance vote could be expected in the eighth week of operations, and weekly from there onwards until passage. According to the release issued by Flare Network, “F-asset” contracts for DOGE, XLM, XRP, and LTC are in simultaneous development. Philion suggested that adding additional assets to these blockchains through governance will also be easy since each of them will use “almost identical smart contracts just with maybe some parameter changes.”
Flare to Airdrop FLR Tokens to XRP Holders
Flare Network is also planning to airdrop FLR tokens to XRP holders who possessed the cryptocurrency on December 12, 2020. Around 100 exchanges are expected to participate in the airdrop.
The $FLR distribution will start when the Flare Network goes live. The team is working to make this happen SAFELY as soon as possible. It is dependent on finishing security testing. We expect this at the end of June +/- 2-4 weeks.
— Flare (@FlareNetworks) April 16, 2021
On the subject of whether users could expect any more airdrops in the future, Philion said,
“The distribution is taking place such that 15% of the total amount being distributed at inception is distributed at day one. The remaining 85% is then opted into through a burn mechanism and is distributed 3% per month over 28 months.”
In addition, he explained that there is a reserve of 25-30% of the initial supply which pays FXRP and FLTC holders daily. But the amount that it pays needs to be fixed.