Where we stand with Flare one month out from launch

[Seoulite]

One of the reasons I like writing posts like this is that it helps to get things clearer in my head and other guys can correct me where I am wrong. So this morning I thought I'd like to write a brief rundown of where we are with Flare in the month before the launch.

 

What we know so far

We know the network was aiming to launch sometime around the end of June, but from various hints I have the impression that it might not be until mid July. We know that Flare is designing the airdrop so that the tax liabilities for the whole drop are as small as possible, which is great. They say they are going to publish their understanding of the tax at some point before the launch.

We also know that the F-asset system is going to go online about 4-6 weeks after the launch, in order to wait for the volatility around the FLR token to calm down. We are aware of various wallets in development: the Bifrost wallet was recently announced. We are aware that most exchanges that supported the airdrop also agreed to list the token, but of course that is probably not set in stone. We also know that Flare is currently doing the due diligence with Binance so the possibility of a Binance listing is there. 

We know that there will be multiple ways to earn passive income from Flare with varying degrees of risk. We don't know exactly how the F-asset system works yet though and that is maybe the biggest area that we need to know more details about. 

We know that several large projects are already committed to the network. Gala being probably the biggest. If you haven't looked into Gala then please do, because it is much bigger than I thought when I first heard about it. Flare Finance is also a very impressive operation. Trustline is exciting. NFTs are exciting. There is other stuff coming that hasn't been announced yet, or stuff we know exists but have no details on. Needless to say the network is hitting the ground running. 

Awareness of Flare is still impressively low, even among XRP holders. But I've noticed that Hugo and Flare have been catching a bit more flack on twitter and that means people are starting to pay attention. Hugo is also becoming increasingly outspoken. Things will really start to ramp up once Flare starts making official announcements.

 

What we need details on

This brings me to the last point. It is getting towards the time when we would expect a few more concrete details from Flare. In particular I would like to see detailed descriptions of how F-assets will work, including the minting fees. I would like to see more confirmation on wallets, or at least how the self-custodied tokens will be handled at launch. I want to know more about this burning process that Hugo mentioned about claiming the spark. I guess I would also just like some more official promo materials from Flare. Maybe they are not doing anything like that because they are afraid of the whole securities thing, which I understand. But noob-friendly rundowns of the network, a collective list of projects on the network, even a brief description of the real capabilities of the network contrasting with other networks would go some way to making this thing more accessible. The blogs they have are high level, and not suitable for noobs. Promo infographics would be a great start. I'm hoping we will see that in the coming month. I hope we are not in the dark until very close to the launch. I get that they don't want to be seen as 'owning' this network, but at the same time it doesn't hurt to show leadership sometimes, especially when people are unsure what's going on. 

My two cents. 

[B088IN]

Great rundown and appreciated as always. 
I for one would also like more of an idiots guide from Flare as well in relation to those who have self custody as to which wallets will be available at launch. I’m surprised not much info is available being so close to release. 
I get the feeling Flare is still way to technical for most, myself included, which is what puts people off, it’s almost as if it’s to technical to bother with. I know my thoughts are simply it was an airdrop and how do I get my free tokens! I know there is so much more to it and I’m hoping once it gets off the ground and is live, the space will become easier to navigate with those people who really understand it, helping those who don’t. Once you get your average Joe (myself) who isn’t overly technical on board with it all, then they can help others to utilise the asset better, ergo making the scene more user friendly.  

[Flintstone]

45 minutes ago, B088IN said:

Great rundown and appreciated as always. 
I for one would also like more of an idiots guide from Flare as well in relation to those who have self custody as to which wallets will be available at launch. I’m surprised not much info is available being so close to release. 
I get the feeling Flare is still way to technical for most, myself included, which is what puts people off, it’s almost as if it’s to technical to bother with. I know my thoughts are simply it was an airdrop and how do I get my free tokens! I know there is so much more to it and I’m hoping once it gets off the ground and is live, the space will become easier to navigate with those people who really understand it, helping those who don’t. Once you get your average Joe (myself) who isn’t overly technical on board with it all, then they can help others to utilise the asset better, ergo making the scene more user friendly.  

37 minutes ago, RareData said:

The Ledger FLR app is a separate Towo Labs project. It's not a requirement for Ledger users to access FLR. The existing Ledger ETH app can also be used with Flare. The FLR app simply improves some UI/UX aspects.

We target FTSO functionality for launch, but things like NFTs will have to come later.

The beta is a gradual rollout, we will clarify. We advice users to get an empty wallet with a 12 or 24 word recovery phrase and with known Flare support. MetaMask is ideal and set its ETH address as message key.

You can then use MetaMask to access Flare directly by adding a custom network, instructions will be published before launch. If for some unexpected reason Bifrost is delayed, you can still access Flare right away.

If you wish, you can import your MetaMask to Bifrost Wallet once launched and keep using both or stop using MetaMask, if Bifrost has all features you need. Your addresses will be the same in both wallets, but Bifrost is multi-chain and will give access to LTC, DOGE, (...) addresses with no additional backup needed.

Regarding multiple addresses, for the best user experience we recommend to use the first ETH address. If you use later addresses, you will need to switch between them.

 

[Seoulite]

2 hours ago, B088IN said:

Great rundown and appreciated as always. 
I for one would also like more of an idiots guide from Flare as well in relation to those who have self custody as to which wallets will be available at launch. I’m surprised not much info is available being so close to release. 
I get the feeling Flare is still way to technical for most, myself included, which is what puts people off, it’s almost as if it’s to technical to bother with. I know my thoughts are simply it was an airdrop and how do I get my free tokens! I know there is so much more to it and I’m hoping once it gets off the ground and is live, the space will become easier to navigate with those people who really understand it, helping those who don’t. Once you get your average Joe (myself) who isn’t overly technical on board with it all, then they can help others to utilise the asset better, ergo making the scene more user friendly.  

I think part of the problem is that we know a great deal about the technical ins and outs of the network but not what the basic infrastructure will look like. It's almost like we know more about how the sausage is made than what the sausage tastes like. This will no doubt change but as you say I'm sure some are scared off by it. I think once the wallets are set out it will be very easy, and people will quickly pick it up like they do with staking. It sounds like most of the core things will be able to be done from the wallet so it should be fine. Participation right from the beginning is most lucrative but not essential, it's no great disaster if it takes people a few weeks to get up to speed. 

[Seoulite]

Hugo confirms on Twitter that he has spent time with Bitstamp and Gatehub in Slovenia. How many listings will there be at launch? How many wallets? A fair number I think.

 

[Chookstar]

On 5/28/2021 at 3:17 PM, B088IN said:

Great rundown and appreciated as always. 
I for one would also like more of an idiots guide from Flare as well in relation to those who have self custody as to which wallets will be available at launch. I’m surprised not much info is available being so close to release. 
I get the feeling Flare is still way to technical for most, myself included, which is what puts people off, it’s almost as if it’s to technical to bother with. I know my thoughts are simply it was an airdrop and how do I get my free tokens! I know there is so much more to it and I’m hoping once it gets off the ground and is live, the space will become easier to navigate with those people who really understand it, helping those who don’t. Once you get your average Joe (myself) who isn’t overly technical on board with it all, then they can help others to utilise the asset better, ergo making the scene more user friendly.  

I couldn't have said this better myself. It's exactly how I feel. Except I was going to call it "Flare for Dummies". 

However reading @Seoulite's post did leave me feeling like, hey I at least know what he is talking about on a macro level. But it's true that I currently have no idea what to do with FLR once I get them. I'll probably do absolutely nothing until I understand it better.

[Seoulite]

27 minutes ago, Chookstar said:

I couldn't have said this better myself. It's exactly how I feel. Except I was going to call it "Flare for Dummies". 

However reading @Seoulite's post did leave me feeling like, hey I at least know what he is talking about on a macro level. But it's true that I currently have no idea what to do with FLR once I get them. I'll probably do absolutely nothing until I understand it better.

It may be helpful to think of it in terms of difficulty levels:

Level 1: Delegate your vote for the FTSO rewards directly from your wallet. This is the easiest, most basic, virtually risk free way of earning rewards. Carries the same risk as having your tokens in a wallet.

Level 2: Put your FLR up as F-asset collateral to gain rewards. This is a bit trickier as it would involve some management on your part, but it seems there will almost certainly be services who would handle this for you in exchange for a cut of the rewards.

Level 3: messing around with FLR in Flare Finance Liquidity Pools, the Trustline app, or any other application that is being built on Flare. Levels 1 and 2 are parts of the network itself, everything else is added on top. This level is the biggest by far, and presumably can get as complicated as you like with insurance, loans, NFTs, etc. However levels 1 and 2 should be more than enough for most people in the beginning. Level 1 is the default.

[LaBelleSaison]

1 hour ago, Seoulite said:

It may be helpful to think of it in terms of difficulty levels:

Level 1: Delegate your vote for the FTSO rewards directly from your wallet. This is the easiest, most basic, virtually risk free way of earning rewards. Carries the same risk as having your tokens in a wallet.

Level 2: Put your FLR up as F-asset collateral to gain rewards. This is a bit trickier as it would involve some management on your part, but it seems there will almost certainly be services who would handle this for you in exchange for a cut of the rewards.

Level 3: messing around with FLR in Flare Finance Liquidity Pools, the Trustline app, or any other application that is being built on Flare. Levels 1 and 2 are parts of the network itself, everything else is added on top. This level is the biggest by far, and presumably can get as complicated as you like with insurance, loans, NFTs, etc. However levels 1 and 2 should be more than enough for most people in the beginning. Level 1 is the default.

@Seoulite I would agree. And the complexity of income tax also seems to increase according to these levels.  

[henne111]

@Seoulite, explained very well. Level1 and Level2, you can get there. And level 3, you get there with time. You just have to read about it. And the professionals will definitely bring examples here. I'm sure.

[Seoulite]

@henne111 @LaBelleSaison @Chookstar This video was released earlier today showing what the delegation process might look like in the Flare wallets. This is exactly how I imagine it will work:

 

[Chookstar]

7 minutes ago, Seoulite said:

@henne111 @LaBelleSaison @Chookstar This video was released earlier today showing what the delegation process might look like in the Flare wallets. This is exactly how I imagine it will work:

 

Okay, that certainly looks easy enough. I hope my current exchanges will offer this option, I'd prefer to not have to open up a new one. So does "Delegation" essentially mean the same as "Staking"? I have set up an Exodus wallet and I stake ADA there, so I've got that far with this at least.

[Seoulite]

7 minutes ago, Chookstar said:

I hope my current exchanges will offer this option, I'd prefer to not have to open up a new one.

There is certainly incentive for exchanges to offer this kind of service, because they want you to keep your assets on their platform right? Some exchanges may be signal providers themselves, so they will want you to vote for them too. 

7 minutes ago, Chookstar said:

So does "Delegation" essentially mean the same as "Staking"?

It may be helpful to think of it that way in terms of functionality, because as you say the interface looks very similar to staking. However there are very important differences with staking. First, you do not lock your tokens. You can move them anytime you want. You can undelegate anytime you want. No penalties. You have total control and the tokens never leave your wallet. Second, you will receive the rewards daily. Third, delegating does not have any role in the security of the network.

So it's a bit like staking but better.

Edited June 2, 2021 by Seoulite

[ftso_au]

33 minutes ago, Seoulite said:

@henne111 @LaBelleSaison @Chookstar This video was released earlier today showing what the delegation process might look like in the Flare wallets. This is exactly how I imagine it will work:

 

You've beaten me too it @Seoulite ! Tim is a Co-Founder in @FTSO_AU ... along with myself, Neil. 

 

21 minutes ago, Seoulite said:

There is certainly incentive for exchanges to offer this kind of service, because they want you to keep your assets on their platform right? Some exchanges may be signal providers themselves, so they will want you to vote for them too. 

It may be helpful to think of it that way in terms of functionality, because as you say the interface looks very similar to staking. However there are very important differences with staking. First, you do not lock your tokens. You can move them anytime you want. You can undelegate anytime you want. No penalties. You have total control and the tokens never leave your wallet. Second, you will receive the rewards daily. Third, delegating does not have any role in the security of the network.

So it's a bit like staking but better.

I'll add one point to this. The "vote power" process will be handled in the background, allowing transfers to be possible. 

When the documentation is related shortly this will become clearer.

[henne111]

@Seulite In the video it looks very simple. I'm already looking forward to the start.

[ftso_au]

Further to the video from Tim (above) and the FTSO Price Provider document I posted in FTSO Matters here's an overview of the Delegation Process. I've removed some information specific to FTSO AU I don't want released yet.

Italics: Theoretical

Definitions:

[1] FTSO AU Smart Contract: Smart contract hosted on EVM (Ethereum Virtual Machine) with functions to interact with blockchain addresses.

[2] FTSO AU App: An interface that users can signup and log into to manage their individual account hosted at app.ftso.com.au. 

Delegation Steps:

A user with 𝑥 amount of Spark (FLR) wraps their FLR into WFLR using the WFLR smart contract to receive 𝑥 WFLR (1:1).

The user then delegates their WFLR vote power to FTSO AU using a method dependant on the wallet the user uses

MetaMask

1. (TBD) Navigate to FTSO AU delegate page
2. In the delegation form, select ‘Delegate All’ or enter the amount of WFLR to delegate to FTSO AU then click  'Sumbit'
3. Follow the MetaMask window prompts to complete the Web3 transaction

Bifrost

1. (TBD) Navigate to Bifrost wallet
2. Open the ‘Delegate’ page and search for ‘FTSO AU’
3. Enter the amount of WFLR to delegate to FTSO AU then click ‘Submit’

Verify that your delegation is complete by visiting ftso.com.au/check-delegation.

Once the delegation is complete no further action is required by the user to earn rewards from their delegation to FTSO AU.

The user always retains full custody of tokens

Tokens remain fully transferable, even without the need to unwrap from WFLR to FLR.

The amount of voting power (weight) provided by the user is found from the users WFLR balance, therefore, the users voting weight provided to FTSO AU is updated automatically.