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HomeCrypto NewsFlare Networks Took Advantage of the XRP Community, Claims Ripple’s CTO

Flare Networks Took Advantage of the XRP Community, Claims Ripple’s CTO

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The chief technical officer of Ripple, David Schwartz, stated today in a Twitter thread that Flare Networks manipulated the XRP community to achieve publicity and then deserted them.

“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 Exec voiced this opinion while making fun of the alleged lack of incentives for holders to hang onto their airdropped FLR tokens in anticipation of future benefits. Consequently, Schwartz believes the team plans to offer only 15% of its pledge to the XRP community.

It’s important to note that, according to a press statement from the company, Flare Networks finished 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. Throughout the event, millions of XRP holders received around 4.279 billion FLR from the team. However, Coinbase customers at the time of the screenshot would have to wait till later, but the organization guarantees them that they will receive the airdrop in the first half of 2023. 

Notably, only 15% of the anticipated 28.5 billion of the 100 billion token supply have been distributed in the first round of airdrops.

Read also: Linqto Predicts Ripple Inventory to Sell Out in 24 hours

According to the original tokenomics, 28.5 billion FLR should have been distributed directly to XRP holders over a three-year period. The initial Flare Improvement Proposal (FIP.01) currently proposes that the XRP community receive just 15% of the tokens at the token distribution event and maintain the other 85% for staking rewards over the following three years. Notably, the governance vote has not yet approved this idea, which will begin on January 14.

Predictably, some community members are furious about the proposal because they think Flare Networks would break its promises after a two-year wait for the airdrop.

Schwartz has stated that despite the reservations voiced today, they do not render the project bad or the team dishonest and has added that Ripple similarly modified some of its commitments as XRP evolved. He added that he is just not thrilled with how the token distribution has turned out.

According to CoinGecko data, FLR is currently trading at $0.04471299, up 3.8% over the 24 hours but 71.2% off its all-time high of $0.150073.

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