Flare FUD Buster
Flare Network is a copy of Ethereum
Flare Network is not a copy of Ethereum. It is a layer-1 blockchain network that uses the Ethereum Virtual Machine (EVM) to run smart contracts. However, it has a completely different consensus algorithm and is a completely separate network. The native $FLR token is not an ERC-20 token.
Flare Network is a project based on the XRP Ledger
Flare Network is a separate Layer 1 network, just like the XRP Ledger. It has its own consensus algorithm and native token, $FLR. $XRP can also appear on the Flare network as a so-called F-Asset, $FXRP, which will enable it to use smart contract functionality. In addition to XRP, the Flare network will support the following coins as F-Assets: BTC, LTC, XLM, and DOGE. The expansion of the list of F-Assets coins will be possible through community voting.
Flare Network is dependent on Ripple
Flare Network is independent of Ripple. However, the Flare team received significant support from Xpring (now RippleX) in 2019, which is the investment arm of Ripple. In 2021, Flare raised $11.3 million in a funding round with participation from several venture capital firms, such as Digital Currency Group, as well as individual investors, such as Do Kwan and Charlie Lee.
The Flare Network tokenomics are weak
The price of Flare has fallen by more than 90% before the network launch
At the time of the Flare network launch in January 2023, the $FLR token had a value of zero. The price of $FLR before the network launch was the price of IOU on the Bitrue exchange. The exchange launched synthetic trading in December 2020. At that time, the $FLR IOU token reached a price of almost $2.
Flare Network copies Chainlink
Flare has a more decentralized approach to blockchain oracles, where in contrast to Chainlink, so-called signal providers are responsible for the process. These are independent entities that provide data from the real market to the Flare network.
Signal providers are incentivized to provide accurate data by being rewarded with FLR tokens. The data provided by signal providers is then used to power a variety of applications on the Flare network, such as smart contracts, decentralized exchanges, and DeFi applications.
The Flare token does have an unlimited supply
It is not true that the Flare network has an unlimited supply. The truth is that it is an inflationary network, and at the time of launch the total supply of tokens was 100 billion. The introduced FIP.01 amendment sets the inflation rate as follows:
10% in the first year
7% in the second year
5% in the third year N
No more than 5 billion tokens per year. After the third year, the inflation rate will be
Flare Network has betrayed the XRP community
This is certainly the case with the situation of announcing the original plans to provide an airdrop only for the XRP community participating in the XRPL network snapshot in December 2020. These plans were changed in connection with the actual distribution of $FLR tokens in 2023, as well as with the introduction of the later FIP.01 amendment. The Flare team argues this fact by stating that they do not want to be locked into one ecosystem, and that the new distribution method will allow a wider crypto community, not just the XRP community, to participate in it.
Broader distribution allows a wider community to participate, which will help Flare to be more decentralized.