Flare Founder Speaks Out About “Betrayal”

In a thread published on Twitter today, Hugo Philion, CEO of Flare Networks shared his thoughts regarding the controversial FIP 01 proposal put forward by Flare.

The proposal aims to improve the token distribution model and reduce inflation while encouraging participation in the network.

Philion begins by acknowledging how this proposal may make some people feel betrayed by Flare.

He then seeks to explain that their intention is not to ignore these feelings, but instead address the prior model’s issues to facilitate a smoother redistribution of tokens from those who don’t want them long-term, to those who do.

Phillioin also shares that its design is inspired by Bitcoin and intends to reward those who build infrastructure with more tokens than initially expected.

The CEO of Flare then emphasizes that XRP holders exclusively received FLR for simply holding it and Flare has been “the only major VC-backed project building around the XRP ecosystem”.

Philion provided additional insight into just how difficult it had been for him to convince venture capitalists of their commitment towards XRP-related endeavors in order for them to receive funding. However, he stated his faith in FIP01 despite adversity as he believed that if executed correctly it could “provide value to the entire industry and maybe even expand” it entirely.

As reported by U.Totay, Ripple CTO David Schwartz, a highly influential voice within the XRP community, repeatedly criticized the Flare governance proposal.

Schwartz also accused Flare Networks of leveraging the XRP community for growth before weakening its commitment when it no longer felt it needed its members.