The Spark (FLR) distribution will now be set up as follows:
1) At the outset, 15% of the total distribution of 100Bn Spark (FLR) will be made.
2) There will then be a 5-month period whereby the community can come to consensus over at least two possible governance proposals outlined below, or any other option put forward by governance.
3) If no new option wins the distribution will continue, from month 6, as previous defined at 3% of the initial 100Bn.
2 Flare-proposed options:
Option 1: Buy through burn.
This option is based on the legal research commissioned by Flare. A recipient of Spark would receive the initial 15% as previously detailed at the inception of the network. The recipient would then, optionally, burn a small percentage of their Flare tokens in order to buy the remaining distribution. The remaining distribution would then occur at 3% per month from month 6.
The legal research commissioned argues that the remaining distribution would then have been purchased, and thus subject to capital gains tax upon sale instead of income tax upon receipt. A full governance proposal for this will be drafted and released together with the legal memo upon which the proposal will be based.
Option 2: Distribution Halt.
This option would halt any further distributions. The remaining 85 Bn would not come into existence. This would turn the initial 15 Bn FLR into the total distribution.
Full governance proposals for these options will be drafted, including our view of the pros and cons, and released together with the legal memo upon which Option 1 will be based.
