What you need to know about the upcoming Spark token airdrop

What you need to know about the upcoming Spark token airdrop

The Flare Network is a new blockchain protocol that is scheduled to launch in the first half of 2021. As part of the initial distribution, the network’s native token called Spark (FLR) will be distributed for free to current XRP-holders.

What is an airdrop?

This kind of initial free distribution of a new protocol token is called an “airdrop”. An airdrop is a promotional instrument, where newly created tokens are sent out for free (or in return for a small service) to certain wallet addresses. The intent behind an airdrop is to generate awareness as well as facilitate the usage of the new tokens. Network effects play a crucial role in the success of a new protocol or application, and giving away tokens for free boosts the number of people initially owning and using the token significantly.

A good example for an airdrop is the one that was performed by Uniswap in September 2020. Uniswap, a decentralized exchange for digital assets, introduced their own token called UNI. The token resembles a revenue claim and voting rights associated to the Uniswap protocol. As part of the initial UNI distribution, 400 UNIs (worth around USD 1’500 today) were airdropped to every address that had at least once interacted with the Uniswap protocol.

How does the Spark token airdrop work?

From a total of 100 billion Spark (FLR) tokens that will be created, 45 billion will be distributed to existing XRP holders. A snapshot of the XRP ledger will be taken on December 12th, 01:00 CET and each XRP holder will be eligible to claim 1 Spark (FLR) for every XRP they hold at that point in time. 15% of the claimable amount will be distributed on the launch date of the Flare network (mainnet), with the rest distributed on a monthly basis over the 25-34 months following the launch.

What does this mean for Sygnum clients?

For Sygnum clients who hold XRP, we will make the process of benefitting from the Spark token airdrop as convenient as possible. Sygnum will participate in the Spark token Airdrop Program and claim the corresponding amount of Spark (FLR) tokens on our clients’ behalf. The Spark (FLR) tokens will be made available to our clients once the Flare network is launched and the distribution mechanism in place.

As Spark (FLR) is a new token, no predictions can be made about the initial value/price for 1 FLR. Sygnum has no influence on the price of FLR nor the Flare Network, and consequently cannot guarantee their future value.


This document is purely for educational purposes and has been issued by Sygnum Group. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a marketing communication. It does not constitute an offer or a recommendation to subscribe, purchase, sell or hold any security or financial instrument. It contains the opinions of Sygnum Group, as at the date of issue. These opinions and the information contained herein do not take into account an individual‘s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes personalized investment advice to any investor. Therefore, you must verify the above and all other information provided in the document or otherwise review it with your external advisors. Some investment products and services, including custody, may be subject to legal restrictions or may not be available worldwide on an unrestricted basis. The information and analysis contained herein are based on sources considered as reliable. Sygnum Group uses its best efforts to ensure the timeliness, accuracy, and comprehensiveness of the information contained in this document. Nevertheless, all information indicated herein may change without notice.

Read next article

Contact Sygnum Singapore

I am a
Submit Mandatory fields

Local restrictions – Provision of cross-border services

It looks like you are using a computer with an IP address located outside of Switzerland.
If you are located in Switzerland, please click “Continue” to access the Sygnum Bank AG (Sygnum) website.

If you are not located in Switzerland, please read below.

This website and the information contained herein are addressed solely to persons residing or domiciled in Switzerland.

Sygnum is a regulated bank supervised by the Swiss Market Financial Authority (FINMA). The products and services on this website are authorised in Switzerland. Sygnum cannot promote its products and services in other countries where it is not authorised by the supervisory authority of that country to do so.

If you click on “Continue” to visit this website, you confirm that you have read and understood the above and you are visiting this website on your own initiative without any active promotion or solicitation from Sygnum.

Investor qualification

The following content is available to qualified investors. Please confirm your details below to visit this page, or please see our other digital asset updates here.

Security alert

Stay alert to fraudulent communications. Sygnum will never post messages on social media or private messaging applications regarding e-banking access or logins. If you have concerns, contact us.