Flare FLR: The Data Layer Putting XRP to Work | Daily Crypto IQ 👀🧠

0:00Yep, they are burning flare tokens as of 2026 and the airdrops are over. Exactly. Good stuff going on. It says fire flare income reinvestment entry. This system captures protocol revenue, the data connectors, F-asset like FXRP and Mev to buy [music] back and burn flare tokens. This is going to be very good for [music] flare. I am going to turn back on.

0:28I'm going to need to be on my account. Smash that like button if you're just rolling in. I appreciate it. Subscribe link to our free discord [music] in the chat. I'll trigger a game here or there. I would normally put the auto on and let it run. I'm figuring out how I like to do the actual digital board game, but with only a couple of people here, I don't want it to just be overwhelming,

1:15right? Uh blues guy, don't don't type um don't type {exclamation point} wild. Because you're a mod and you're able to actually trigger it, the game. It won't do it if one's already going. Reliable J in the house. Welcome in Reliable J. We're going to give Let me do this real quick before we kick off. Reliable J gets three rolls. Anybody who

1:57comes in automatically gets three rolls. Because, of course, they're going to be behind a little bit. So, that's how I'm going to run this. Reliable J was the winner. He certainly was yesterday. All right. So, now we're locking in. Hey, AGU3000, welcome in. Welcome in. If you haven't been here in a while, 3000, we just implemented our

2:38board game. Let me give you some free tokens so you can see how it works. We have a digital board game now. The winner gets a free $10 in cryptocurrency if you haven't seen it. Give token. Let's do at AGU3000. He gets three tokens. So, you're going to put {exclamation point} r o l l to roll. There will be mini games. Now that we have a few people here, I'm I'm

3:09actually going to kick off the uh the games in the background while we're playing here. Reliable J rugs me. Hey, competition stiff, man. We're giving away $10 in free cryptocurrency for anybody who wins tonight's game. You can do multiple laps on the board. There are things on the board you can trigger. You can wind up going back a couple spaces. You can trigger a wheel

3:38that kicks out a random event. Pretty cool stuff. I'm loving it. Says, "Nice. Thanks." Absolutely. You'll see everybody playing. And so, there are mini games. This is really just for 3000 here, AGU 3,000. Uh there's mini games. We have 10 different mini games, reliable J. I've added five new mini games. We're going to get up to like 15, 20, but I don't want to add them all at once cuz I think it'll confuse people. In our [music] Discord,

4:03there is a tab that should tell you everything you need to know. Now, also, um I have it set so it'll randomly play those mini games. And you will learn the mini games as you go. You'll see other people play them, and you will learn how to play them. Let me turn them back on. Blues guy, just slow down, man. Have patience.

4:39If you're really confused, then just look at the stuff in the Discord. I don't know why you'd be shut out of it. I can always send it to you after the show or something. All right, time for the token Flare autopsy. I know we're rolling out this digital board game. Sometimes new people come in. I got to kind of educate them a little bit. Hopefully, everybody's joined the Discord, and they can go in the tab where I have nice graphics made on how

5:02to play the game, how it works, what the games are, stuff like that. So, Flare token autopsy, the data layer putting XRP to work. What you may not know is that FTSO is built into Flare rather than hired as a separate oracle service. So, Flare has built its own oracle service, FTSO, so that it doesn't have to rely on some kind of third party. Then we have [music] FTSO volume two. Updates block latency feeds

5:36What does it do? It updates block latency feed about every 1.8 seconds, supports up to 1,000 feeds, and draws on a roughly 100 independent data providers. So, FTSO volume two is a second volume, right? It's an upgrade. Just like you see Ave or all these other ones are on like volume four or five and stuff like that. It's just another upgrade. So, it's ordinary on-chain feeds are free for applications to read.

6:05So, free to read is very useful. It also means value capture must occur somewhere else other than retail price tag on every lockup. Then you have this FDC. Well, it does not want to move XRP. It verifies facts such as whether an XRPL payment has actually happened. So, it's a verifier. F assets uses the proofs, uses that whole ecosystem we just described to mint FXRP. Calling the whole process a bridge is convenient, but it very much hides which

6:46component verifies which components hold collateral, which components issue the representation. FXRP is already more than a wrapper sitting inside a wallet. And by a wrapper, they mean a wrapped coin like WETH, wrapped ETH, or wrapped BTC. We see them a lot. FXRP is a lot more than just a wrapped asset. That's a big takeaway, right? So, Flare reported about 145 million FXRP has been minted on September 21st. We did talk about this, right? On 130

7:34million used in DeFi across 21 million around roughly 21 million moved to other networks through layer zeros OFT standard. The important measurement is use, not merely what has been minted. The smoothest firelight flow does not require the user to hold the actual flare token. A user can begin with XRP, mint FXRP, and deposit it through a flare smart contract. Fees and charge Fees are charged, right? in FXRP. [music]

8:08That is good interface design and an awkwardly useful reminder that product adoption and native token demand are not synonymous. But they did some smart stuff by connecting it with some burn that brings value back to flare. That is the intelligent type of stuff I like to see in an ecosystem that you just don't get everywhere. It's just a fact. Flare confidential compute is not yet Flare mainnet product. This is coming soon.

8:39As of September 30th, it was live on Songbird. Flare's canary network. Songbird Songbird is also very important to point out. If you're just rolling in, smash that like button. If you are just rolling in and you need some free tokens, everybody gets three free rolls when they roll in, just so that they can compete with everybody else. Winner gets $10 of whatever cryptocurrency they would like. So, Songbird is very important in all of

9:07this, and I won't get ahead of myself cuz we're going to talk about it. It is Flare's canary network. Beginning with a confidential proof of reserve use case for HEX, Trust, USDX. A Flare deployment is supposed to follow separately. And what you also may not know is that Flare drops are finished. The 36-month distribution ends January 30th, 2026. At

9:37the TS O delegations, validator staking and F A asset agent rewards continue, but they are different programs. Old explanations that combine them now contain a small archaeological layer. One of my favorite segments that we do, and this is signal versus noise. Let me make sure. If you see somebody my mod, shout out to my mods. If you see somebody that says I need tokens [music] and I don't get to them, um

10:10just remind me. Or blues guy can always text me directly. I'll see it. So, signal versus noise. All right, it should be pretty straightforward. Signal, very important. Noise, not important or far less important. So, what is noise here? Well, Flare is the blockchain for data. So, every data request creates FLR token demand. This is the type of thing you would hear or think

10:34just doing a brief amount of research yourself. But, it's not the facts. Signal, identify the fee, the asset used to pay it, and where it is routed. Whether FLR, the token, Flare token is burned, locked, brought, or merely nearby. Is it important in whatever function of any ecosystem you're looking in, is the token actually

11:03used to just hanging out, or is it not even mentioned? So, 145 million FXRP means 145 million dollars of value has accrued for the FLR token. False. That is noise. What is important is that FXRP adoption proves demand for the actual rails that the that everything is operating on. Flare token benefits through specific security and fee routes, not by sharing a postal code with F with XRP, right? Not FXRP, I'm getting ahead of myself.

11:40So, what is noise is that the Flare token has an infinite max supply. Therefore, dilution is unlimited right now. This would be your first thought. And in some projects, that is true. But in a more serious structured project where there is a lot of thought going into the way the ecosystem runs, I wouldn't jump to that conclusion. If it's a meme coin or just like some irrelevant project, I do kind of go to there. I go to that

12:08conclusion a lot of times. I don't know how many tokens are going to come out. If you know your tokenomics, you know what I mean about maximum supply and there being an unlimited maximum supply. But what is important here is that the Flare token has no hard maximum. But current annual inflation was reduced to 3% with a 3 billion Flare token yearly cap. So, no more than 3 billion tokens. The relevant test is realized issuance. How many tokens are being emitted and

12:36put out on a yearly basis minus how many tokens are being burned on a yearly basis, and that will tell you if it's inflationary or deflationary. Withheld issuance over the same period of time. So, I'm giving you the formula there. Enshrine data means trustless and therefore riskless. Well, that's not exactly true. What is important is that enshrine protocols reduce dependency on separate

13:04oracle committees. But F assets still combines data providers, collateral agents, smart contracts, liquidations, and external chain operators. More integrated does not mean invaluable or invulnerable, right? Let me catch up on my chat. Where all my people at? Blues guy says Google Cloud and Flare as June 2026. Let's go. And we're going to get to some

13:33of those things that you posted as well, Blues Guy. So, what is noise? Is 467,000 transactions in a day means 467,000 users. Well, that's not exactly true. What is important is that DeFi Lama separately shows about 5,000 and 69 active addresses for the same 24-hour snapshot. Transactions measure

14:02actual activity or actions, right? Addresses approximately participants. Mixing them creates excellent marketing and terrible arithmetic. So, what is the problem here? What is the big problem that we're setting out to try to fix or Flare is, right? Not us here at Underground. We're just educating and raising our crypto IQ. You smash that like button for me, would you? And subscribe to the channel. I put a lot of time and energy in, so if you

14:34would consider one of those memberships, they start at $3. You get custom emojis. You can use those custom emojis as your icon in our digital board game. We just only getting started here. We're up and coming channel. Smash that like button and join our free Discord in the chat. Also, all links are in the description. So, what is the problem that Flare is really trying to solve? Well, blockchain chains are good at agreeing on their own state or their own memory of what has

14:59happened and bad at knowing what happened elsewhere on other chains. A lending contract cannot safely price collateral without market data. This is where oracles usually come in. A contract on Flare smart contract cannot simply take a user's word that XRP was sent on the XRPL ledger. It needs to verify these things. And an institution cannot post every reserve account or client record publicly just

15:29because the smart contract is curious about it. So, we have these dynamics, these financial dynamics, but Flare is tackling it. Flare has built a stack for those three problems: public prices, verified external events, and private computation. So, they're all over it. The shift here is follow the stack in order. What data enters the system? These are your high IQ questions if

15:56you're following along. Which Flare protocol actually verifies it? What applications become possible? And which events create value for the actual Flare token, the thing that we're most concerned about in a token autopsy report? Welcome in, smash that like button. If you would like to play along in the game, just say, "I want some free tokens." And you will get three free tokens. That means three free rolls in our digital

16:25board game. This is our second day of debuting it. Winner gets $10 in free cryptocurrency of their choosing. So, the shift is that fourth >> [music] >> step is the autopsy. The first three can build an excellent network while leaving the token >> [music] >> economics merely adequate, right? And go back, show you what our three are. Data

16:51enter system, Flare protocol verifies it, and applications become possible. But which ones create the value for Flare? The payoff. What is the payoff of doing this token autopsy? Well, we can credit Flare for a coherent product architecture without quietly awarding Flare token ownership of every successful application. The result is a cleaner judgement. The ecosystem has real utility and a credible technical

17:22moat against its competitors. Token value capture is now live but financially early with meaningful execution and governance questions still open and on the table. Identity and purpose. So here we are going to break down what is Flare just so everybody is clear and then what is its purpose. Flare is a Ethereum Virtual Machine compatible Layer 1 blockchain designed for data intensive and interoperable applications.

17:53Interoperable means things working together or being able to communicate with each other. FLR is the token and it is the native asset of the Flare blockchain. It pays transaction fees. This is all utility. This is me telling you what Flare token utility is. Hopefully you understand. It pays transaction fees, secures validators and data providers through staking and delegation. Participants are participates in governance and can

18:25serve as collateral inside part of the ecosystem. FLR, the token, is the native currency, not an ERC-20 token with one universal contract address. It is wrapped Flare or WFLR is the C-Chain representation used for delegation and smart contract inter- interaction. So if you were on Ethereum, you would probably see wrapped Flare. Where if you see FLR, then you're probably on the actual native network. Anyone checking a Flare

19:00contract should first identify the network and asset form. This goes pretty much in any wallet for any blockchain, any asset you're dealing with. Make sure you know what blockchain you are dealing with. This is a high IQ type of thing. So, ticker recognition is not due diligence. Just cuz you can look at it and it says FLR and you're like, "Oh, that's the Flare token." Well, you kind of need to know what blockchain you have it on. However, enthusiastically, an

19:29exchange page may suggest otherwise. The central investment question is whether Flare's data protocol and asset rails require enough of the Flare security, fees, and collateral, and supply reduction to offset continued issuance and organizational selling pressure. Let's break that down. You have 3 billion Flare cap per year.

19:58Are we burning more than 3 billion per year? That's what we need to know. If we are, >> [music] >> deflationary, highly, highly bullish. If it is kind of just about the same uh emission as burn, well, then you have kind of a neutral, where it's not really moving one way or the other, and that does help money coming into the market cap move the token more. But, what we

20:24really want to see is that deflation. So, the product and the problems itself. Ordinary smart contracts cannot independently observe exchange prices, [music] an XRP payment, a bank reserve balance, or an API response. They need an oracle or verification system. Again, we're talking about the product and why this product was even made, aka the problem that the product solves. That creates an external dependency. If the data is

20:54wrong, the contract can execute perfectly and still produce the wrong result with [music] admirable efficiency. So, it could be very efficient at what it's doing and still not really be on point if the data is wrong. making data one of the most important things in an ecosystem in a blockchain where it's getting its data has to be highly highly trustable and accurate and timely. This is why Chainlink has got so

21:21much attention because every product really needs it. So Flare puts core data protocols inside the network's own security model. The same broad infrastructure provider system supports consensus. Consensus how a blockchain works. Price feeds and external data attestation. The product is therefore not merely another fast Ethereum Virtual Machine. It is a blockchain whose differentiated services is verified data.

21:51Yes, that was highly technical. Follow along, you will understand and you will raise that crypto IQ. I have faith in you, you can do it. Welcome to the digital board game. If you would like three free rolls as I see some people rolling in, just [music] type I would like some free rolls and I will make sure that you get some and you can participate in our board game. So XRP Phi. You know DeFi where we put Phi at the end of everything. It's just to

22:19say the decentralized finance or application that exists on a network. So XRP Phi is the first large demonstrated is >> [music] >> is first large demonstration because XRP has substantial capital and settlement utility. We're talking about FXRP and XRP's relation to Flare. So just for clarity, I'm going to start over. XRP Phi is the first large

22:47demonstration because XRP has substantial capital and settlement utility but limited native general purpose smart contract functionality. So the data architecture, three jobs, three statuses. We have FTSO, which we already said is about data. And data is highly important. It might be a little technical. It might seem a little outside of your wheelhouse, but it is highly important. So, FTSO is the V2, right? We're in V2 or volume two of

23:20this data feed that it's built [music] itself to verify. So, supplies public time series data, such as asset prices, it's live on Flare. Then you have the FDC, which verifies facts from external chains and web two sources. So, FTSO data inside Flare. And then FDC data outside of Flare blockchain, that is. Then give smart contracts as a Merkle proof, so they can check it's live on Flare.

23:53FCC, sound like government, you know, agencies, but they're not. This is all within the Flare. I I I assure you this is e- Flare ecosystem stuff. So, the FCC runs approved code over private input >> [music] >> inside trusted execution environments and returns a signed result without exposing the underlying data. It's live on Songbird. A Flare mainnet deployment is later. And it's almost like Flare has

24:20Songbird as their testnet, wink wink. So, when you see things rolled out on Songbird, and it might legitimately be in its own documents a testnet for Flare, but either way, it's it works very much like that. It is a canary chain. These are related but not interchangeable, right? These three different jobs and three statuses. A price feed tells a lending market what XRP is worth. And an FDC attestation

24:48proves that a particular payment actually happened. It's a verification. The FCC can answer whether confidential reserves cover a stable coin without publishing the reserves account. Privacy. You know, we're all about privacy nowadays in cryptocurrency. So, the architecture is strongest when every layer has a clear job. It becomes suspiciously or suspicious only when a three when all Okay, start

25:20over. I don't know why I can't talk. So, the architecture is strongest when every layer has a clear job. It becomes suspicious only when all three are compressed into one word, and that would be data. And expected to explain themselves, or basically you don't understand how the ecosystem works. Hence why we do these deep dives research with a token autopsy twist going on because that is the most important thing to the watcher, to the

25:49viewer. What is more valuable than us going through projects one by one and saying the token that you have access to because you can't buy into Flare's actual company like a stock. You can't do that in the world of crypto. If it has a stock like Coinbase, then you could do that. But here in the world of cryptocurrency, we have tokens, coins, cryptocurrency assets, right? Blockchain assets. Whatever you want to call them, it doesn't really matter what word you

26:19want to use. So, the point is what is more valuable than knowing if on top of speculation in the market, people just randomly buying the token, right? It captures value outside of that speculation and inside of the ecosystem. You put those together, could be a powerful catalyst for higher prices, aka money made, never financial advice. Welcome into the show. Smash the like button. Flare data stack. What comes in,

26:47what networks verify, and what applications can use. We have inputs, market prices, crypto, equities, commodities, these type of things. That goes over to the FTSO and it's in volume two. So, price feeds every 1.8 seconds. So, it's updated every 1.8 seconds. The outcome is DeFi pricing that it can be trusted within the applications, the DeFi, and the blockchain network of Flare.

27:15External events. Exactly what you think. It is events that are not happening on the actual Flare blockchain. Well, that's where the FTC comes in. It's kind of like the FTSO, but it's for external things going on. Then, it comes back in as Merkle proofs, if you know what a Merkle proof is. F-assets and F-XRP are the outcome. Then, you we have private data that is input.

27:41Then, you have the FCC, which is live on Songbird right now, and I believe will be coming very shortly to the Flare network. And that verifies results, proof of reserves without exposing those balances or those players. Did I miss anybody who wanted tokens? Y'all are crushing it right now. I appreciate you guys big time. Hopefully, everybody is enjoying the new board game.

28:12Let me have a sip of something to drink, right? So, let's talk about the FTSO volume two. I am absolutely jazzed about doing this uh series tonight because I've looked at the Flare ecosystem a lot in a lot of different ways. It's DeFi. I use some of its DeFi. I stake in different places. I have X-FRP. I have it staked on Firelight. I'm getting points. All of these things I'm

28:39doing, but haven't sat down and organized it like I have to do when I do this and actually really run through it. So, this is about the second time that I'm really running through everything in order, and man, it is so much fun to raise my crypto IQ. I love this stuff. That's why I do it. That's why I can show up 6 days a week and do this for you. And if I didn't have that pesky other business that pays the bills,

29:05um I'd be here pretty much 24/7, honestly. But, I'd be here on Sunday, as well. So, let's talk about FTSO volume two, the price layer. FTSO stands for Flare Time Series Oracle. I bet you thought it was random letters. No, it is not. FTSO volume two updates block latency feed, how often it updates, with each Flare block, which is approximately 1.8 seconds, call it 2 seconds, right? And uses slower scaling feeds with a full commit reveal

29:37process as an anchor. This is all blockchain tech. Around 100 independent data providers support each feed. That's a lot of different data providers. Yeah, many other places to earn yield since we last spoke. Absolutely, there is. I was looking at it earlier. And we're going to go to the Flare asset um page and look at a lot of this stuff. I don't know if we'll have time to go into every product. Almost need a show on just Flare's DeFi.

30:10So, selections for fast updates uses stake-weighted verifiable randomness. While volatility incentives can expand the provider sample during turbulent markets. That design tries to combine speed with a slower integrity anchor. Yeah, integrity I want to make sure I didn't say integer. Lucky drop. Look at that. Struggle hearts going to get that lucky drop. Anybody going to

30:42get in there? You got 20 seconds. Exclamation point, join. If you're just rolling in, we have a digital board game now built into the stream. The winner is going to get $10 and whatever cryptocurrency that they would like. And we're going to keep up in the stakes and up in the rewards. I hope everybody enjoys. If you would like some free tokens to spin on the board, just say I want some free tokens and I will make sure that you get some.

31:05So, we're talking about FTSO. What does it do? It is the price layer. So, the feed can cover crypto, equities, and commodities. The current system is designed for as many as 1,000 feeds. Basic block latency, feeds are free to read on chain. Applications may pay ordinary gas. For users, that reduces integration friction. The takeaway is that it makes it easier for developers to build and to look at what's going on without having to pay a

31:40fee every single time. They just want to look at some data like you might have to in other tokens. Struggle heart, the free tokens are for new people. I know you know that. You're always messing with me. So, for Flare token, the economic connection comes through the stake and delegation that select providers. Protocol rewards and paid volatility services are not a mandatory charge on every price read. And the

32:09point here is that again, developers and people who are using can look at data and read it without having to pay a fee for everything. And your first thought should be, well, I want them to pay a fee in Flare so that there's a lot more Flare. But, if that keeps people away from the ecosystem and that keeps people not wanting to build here, well, then it's not really a benefit. You'd be better off to let them read it for free

32:36is what I'm getting at. So, then we have the FDC. Proving that something happened elsewhere outside of the Flare ecosystem or blockchain. The Flare data connector validates external facts and commits verified responses into a Merkle tree. Only the Merkle root needs to be stored on chain. A user can retrieve the response and proof off a chain or off chain and the smart contract

33:04checks that proof against a confirmed root. This is all verification of things that are happening outside. So, it basically reaches out, looks at something, brings it back to Flare, and then it verifies it to make it simple. FDC confirmation requires signatures representing more than 50% of the providers weight. Supported attestation includes payment verification, EVM transaction, address validity,

33:33and block height existence, and other structured claims. It's a little bit technical. When you think of attestation, maybe think of like verification, right? It's often what attestation is used for. It is not the only thing that attestation does. Recent chain data usually has a limited request window, but once a proof exists, it remains available. Practical examples are an XRP holder

33:59sends XRP on the XRPL ledger, which is XRP's blockchain. FDC does not custody the XRP and does not mint FXRP. It proves that the payment meet meeting, right? The requirement conditions occur. So, it proves that the payment meeting the required conditions actually happened. F assets then acts on that proof. This is all about verification. So, the FDC requests have fees. So, under the FIP-16

34:39implementation, this is like a proposal you would have with a DAO or something, but it was implemented, meaning it must have passed. 90% of those fees route to FIRE. And we'll stand We've already told you what FIRE stands for, and 10% remains in the provider reward path. This is one of the clearest links between data usage and Flare economics. Bullish for Flare. That's what you need to know if that didn't make sense to you. I'm doing my best to make things

35:06that are very complicated seem easier to digest. But, of course, I need your attention for that. And what I want to say is it like imagine if somebody was going to explain to you, I don't know, how a jet engine works or quantum computing or just some kind of complicated thing and was trying to make it as simple as possible. There is a level of It's only so simple you can make it, especially if you're not paying

35:31attention. F-assets are over-collateralized representations of assets that originate on other networks. FXRP is the live XRP representation. The original XRP remains on XRPL while FXRP exists as a programmable ERC-20 style asset on Flare. And through OFT transfers, the supported external network. So, what we're saying is the original XRP actually remains on the XRPL ledger. It never leaves.

36:08While FXRP or your your like wrapped XRP on Flare, Flare XRP, is actually a programmable ERC-20 style asset on Flare. The system combines the FTSO price, the FDC transaction proof, collateral agents and core vault, redemption rules, and liquidity. This is showing how everything works together to make something like XRP on XRPL ledger become FXRP on Flare ecosystem. And everything has to be

36:40accounted for and proven. The backing mix can include stable coins or Ethereum collateral or Flare collateral itself, Flare token collateral. Community collateral pools add another protection layer. And we have minted the different pools. We've done all kinds of different stuff. If you're hanging out here and you haven't dropped something in the chat, feel free. I'll drop you some free rolls and you can get on that board game that

37:08we have around the perimeter of the show. So, minting creates FXRP only after the underlying payment is actually verified. Redemptions burns the FXRP claim and releases the XRP back through the system. This is a lot similar to what we talked about [music] with VVV, Venice token, yesterday. Is that in order like So, you go in one direction, right? You go to your XRPL ledger, your wallet, and you

37:37go to mint XRP on Flare's blockchain. Now, obviously, your XRP probably lived on the XRP blockchain first. Well, what happens when you want to go backwards? What happens when you want to get out of the Flare ecosystem back into the XRPL blockchain, XRP blockchain. And you want to maybe sell your XRP or maybe you want to do something else on the XRP ledger. Maybe there's a new opportunity that's giving you a a better

38:05yield, right? You have to burn that FXRP. You can't keep both, right? You have to basically move it back. So, if collateral fails below required ratios or an agent fails, liquidation and compensation mechanisms are supposed to protect that claim. This is trust minimized, not assumption-free. The user is replacing one simple asset position with exposure to a multi-contract, multi-provider collateral system. That may be

38:38worthwhile. It is still exposure, though, and hopefully some of these financial things are starting to really click with you guys as we have been over some financial products and things recently. But my security in doing this show is always that I continue to learn regardless. The FXRP user journey. This is the cleanest version, right? You begin with XRP in a XRPL wallet. You send that XRP to

39:09the core vault using the required destination information. FDC verifies the XRPL payment and F asset mints you FXRP one-to-one on Flare. Now, it is the actual uh experience of using this is far less complicated than it sounds, right? You're just clicking buttons in different places. Use FXRP, and lending liquidity vaults, yield, and markets, or Firelight. Redeem FXRP to receive XRP back on the XRPL ledger. Flare smart

39:44cond- uh smart account, sorry. I'm so used to saying smart contracts. Flare smart account can compress several of those operations behind one XRPL signature. That matters because the technical safety bridge in the world remains commercially decorative if the ordinary holders abandon the process on step three. The token check is equally important. A user can complete the Firelight path

40:13with XRP, pay fees in FXRP, and never require flare token directly. So, that begins to show kind of a disconnect in the ecosystem to the native asset. But, there is now implemented a burn with that ecosystem so that brings back value into the FLR token. So, FLR token, flare token, can still benefit from the infrastructure and fee routes underneath. The connection is indirect rather than simply a imaginary, right? So, here is an illustration.

40:54Every time one of these illustrations pop up, it's kind of an opportunity for me to check the chat. Because as you can imagine, this chat runs super fast with the new game that we're playing, right? Blues guy says, "UG, thanks for going through the flare." Absolutely, brother. I know you love flare and I've learned a lot about it, but I really want to to sharpen myself on it as well. Cuz I I I really since you started talking about it and things, I'm really starting to

41:21understand more what the big deal is, right? More and more. I already knew a lot, but I'm learning more and more. And hope some are paying attention, I'm sure is what you meant. As they sure will once it starts pumping and gets to the point of no return. Yeah, I mean, let's think. This thing's at a half a billion dollars. There is no There's no good reason why this couldn't be 10, 15, 20 billion

41:52dollars. Just Just for what it does, comparable to other things. Um and it's it's a lot newer, has better blockchain technology and I think a more understanding of what they're doing developer and team than a lot of other projects do in this space. Um I really don't see how it doesn't get to like and this is just my own personal opinion, but 10 billion doesn't seem crazy at all. Like at all at all. And just so what

42:24we've done so far in this token autopsy first starts with the deep dive of the actual ecosystem. I'm getting more bullish and I think I'll be buying some more fire I was going to say fire light. No, I'm going to be buying more flare here very soon. Ooh, what a day, what a day. How's everybody doing? I just want to give everybody a minute before I get back at it. Get back to raising that crypto IQ.

42:54So first XRP wallet. The user begins on the XRPL network. Then it sends XRP. A payment goes to the core vault. The FDC verifies Flare proves that payment really happened. So as you can see in the blue, you're on the XRPL network. When you go here to FDC verifies it, this is Flare ecosystem. Then you go after it verifies, it's going to mint you a one-to-one, meaning one XRP equals one FXRP, giving them the

43:30same value. CCP, welcome in, welcome in. I missed you so much to underground crypto. We missed you too, CCP. Blues Guy says great stream. I appreciate you for sure. Uh let's see. He says who else needs a heart? I appreciate you. Uh let's give Let me give uh CCP some free free spins here. Everybody who comes in gets say three free spins.

44:04Actually, at this point I'm upping it to five free spins. The reason? Well, because as we get later in the game, three spins is not going to do a lot for people. So, I give you five spins. Hopefully, I worded it all right. I think I had to capitalize the CC. All right, let's try it again. I don't know why on my phone it it sucks to do this.

44:44Cuz when you hit the at sign, it doesn't really um it doesn't really just automatically give you the person. Usually, I can hit like at and then put like three letters and it'll just pop up. There we go. It should work now. There you go. This board game is so much fun. I am loving the heck out of this. Shout out to all my undergrounders.

45:16Uh I work diligently for you guys all the time to try to make this show better and better and better. Winner gets $10 in free cryptocurrency and I mean it. I mean it. So, remember you can change your um icon. If you put {exclamation point} peace and then whatever emoji you want, you can put BTC, Ethereum, Pepe, like letters and it'll give you that as well.

45:45So, we have XRPL wallet. You send the XRP. The FDC verifies it on Flare and it mints you FXRP one to one. Then, you use it to lend, trade, or enter uh vaults or stake on Firelight. And then, if you want to redeem it, you can burn your XRP because it's one-to-one, you're not going to lose anything, and then you get your XRP back on the XRP ledger. Everything works and flows perfectly. I've used it myself. It is very simple to use. As long as you actually have an

46:17XRP wallet with XRP in it, you're pretty much good to go. All right. So, Flare smart contracts or sorry, Flare smart accounts. In my mind, I I I talk about cryptocurrency every single day, but I do it on stream 6 days a week. We used to do it 7 days a week. But, my point is uh I'm so used to saying smart contract, I I probably say it in my sleep. So, Flare smart accounts probably made up of smart contracts

46:48are hiding the Ethereum virtual machine plumbing. We call this abstraction. So, Flare smart accounts link an account on Flare to an XRPL address. The XRP holder authorizes an action with the wallet they already use. The system then verifies the instructions, creates or controls the associated Flare account and composes the requested mint [music] and deposit operation. By July, Flare reported nearly 24,000 smart accounts and more than 40 million

47:25XRP earning through Exzama Examan. I I don't know what you call this. I call it Examan. I do have this wallet and I like it a lot and this decent integration. Those figures show that removing wallets and gas friction can change behavior. Convenience does not remove contract risk. That should be clear. It packages multiple contracts and messages into one user action. A shorter button sequence is not a shorter

47:56dependency on chain. For adoption, however, this is one of Flare's best decisions. Users generally prefer finance to feel like finance rather than a scavenger hunt for a gas token. That That is very accurate. Like that is That is very very very accurate, I must say. So, what users can actually do? Well, the ecosystem is easiest to understand by its function. Trading and liquidity,

48:27SparkDex, BlazeSwap, Anosis provide markets for swapping assets and supplying liquidity. You can trade directly, as long as you're not an American citizen, on SparkDex, which is really cool. I just can't use it without a VPN, but I'm never telling you to do that, right? A lot of people in crypto sell like a VPN service. I think it's funny cuz in one side they're like, "I'm not telling you to do that." And then they're like, "But I'll sell you the

48:53product." Um I don't have any problem with it, just to be clear, but um I think it's funny. Lending and borrowing, Kinetic and Morfo based markets let us let users, right, lend FXRP and borrow against it instead of selling it. We've done a whole token autopsy on Morfo. So, we broke down the products with Morfo. I think I lost most people when we did this because it was some high financial IQ and crypto IQ like put

49:23together type stuff. But if you paid attention, I think it made you a smarter speculator in this space and maybe even just in finance as well. So, the vaults and managed strategies are ClearStar, Monarch, UpShift, and EarnXRP package several strategies into a simpler deposit experience. Now, we're talking about the ecosystem and the DeFi that exists there, and there's quite a bit. It is quite awesome, honestly. Um and we'll get to that. We'll show it in just

49:55a minute. So, yield trading is stuff like Spectra. It separates principal and future yield, so users can seek fixed or variable exposure. Stablecoin creation, Anodos CDP can use FXRP as collateral for an XRP backed stable asset. What is the point of what I'm trying to tell you here? I'm trying to simplify here. FXRP is used widely through the DeFi of the Flare ecosystem. It's pretty awesome.

50:27And it's one of these things where like one of the critiques that I hear from a lot of people about XRP is actually the lack of things that you can do with XRP on its native XRPL Ledger. Now, I don't think it'll stay that way forever. But, Flare is really kind of This is just my opinion. I think Flare very much kind of saves the day when it comes to the XRPL Ledger because there's not as much going on there as you would hope for. Most

50:57people buying it think XRP cross-border payment. Don't need to pay attention to the blockchain that it built. And a lot of people are just holding the token hoping it's going to a thousand dollars a coin or a hundred dollars a coin or ten thousand or fifty. Like it's it gets wild, right? But, the point is Flare is actually building the ecosystem that we really needed for the XRPL Ledger. And it can reverberate backwards, right?

51:25Because people get so accustomed to this, maybe XRPL will build something to complement this without trying to compete with it. That would be genius. So, cross-chain use. FXRP can travel through LayerZero's OFT standard to networks including Ethereum base, BNB Smart Chain, Manifold, and Hyper EVM. Protections here is Firelight uses staked FXRP as capital backing to find DeFi vault losses, and they claim very much that you are protected, which

51:59is pretty amazing. Oh, yeah, the the rug puller is really interesting. I like that game. The new games that I added have a little bit more to them. Um I like the games that we had before, but I don't want every game to be overly simple. Like, I want there to be a little bit of play in this game. So, again, if you need some free tokens, let me know, and I will give you some free tokens. Let me just make sure. Camsta in the building. Camsta needs

52:27some free tokens. Let's get Cam some free tokens here. So, that he can get some free rolls. This late in the game, I got to give him five just so he can he can get in there. So, Camsta got five free rolls coming your way just now. Welcome in. Welcome in. The chat's going nuts. It's very hard to keep up with. So, let's go give token. This is our second night doing this. So,

52:56it it's it's a learning journey, for sure. And let's give you five tokens. It's much better to do it on my computer. But, I got it rolling with the phone cuz when I have these slides up, it's different. So, welcome in to the Flare ecosystem token autopsy of the Flare coin. So, the ecosystem, what users actually do.

53:24So, now we get into the users. This is a coherent financial ladder. Create the assets, make markets for it, lend it, package strategies around it, and move it to deep venues. And finally, use it as protection capital. Camsta, you got some rolls. I want to see Campster with that exclamation point roll. So, the weakness is concentration. Much of Flare's current identity and liquidity is tied around this XRP pie,

53:56which I don't think is a bad thing, and that is a strong beachhead, but a beachhead is not yet a continent. What are we talking about? I got jokes for days in here, but everybody might not get it. So, trading and liquidity. SparkDex, FlareSwap, and Enosis. If that's what you're into. If you're into more like lending and borrowing, well, we have Kinetic and Morpho base markets. If you want to just walk up in

54:24a vault, different strategies like lending or not sorry, vault strategies and things that you could put your money in like liquidity pool strategy, stuff like that. We got ClearStar, Monarch, UpShift, and Earn XRP. Then for yield trading, we have Spectra. Stablecoin creation, we have Enosis CDP, and protection cross-chain, right? Firelight and Layer Zero OFT. Right here, I just gave you

54:54a bunch of projects in their ecosystem. Think about all the different eco um token autopsies we've done starting with the breakdown of their ecosystem. I haven't seen this much going on in a lot of projects. I will say Flare has been around a while, so it's had time to build, but what's going on with a lot of these other ecosystems? They're too simple. They're just lending or they're just this, they're just that,

55:19and they're not multifaceted. I think [music] this type of thing has a high potential of winning out against just a one specialized thing. People want everything together because it gives convenience. Why do you go to a convenience store to grab a drink and a bag of chips and not to Walmart, not to whatever grocery store, insert grocery store there. Uh why do you not go to there? Because it's busier and it's just

55:44less convenient. Huh? I think I'm onto something. Firelight went live on October 6th. FXRP depositors provide pooled protection capital for selected DeFi vaults. I'm pretty sure that it was like October 8th that I put mine in. So, it's probably been like a year now. If a covered event meets the published criteria and an independent risk consortium validates it, capital can be released to

56:13cover eligible losses. A staker receives STXRP. So, now we're talking about staking XRP on the Flare ecosystem. So, when you stake your FXRP, you earn STXRP, and that gives you an FXRP denominated emissions funded by the vault operator. Then you can take your STXRP and do something like restaking. The position

56:42is subject to slashing, and exit lengthens to match 30-day coverage period. This is not a savings account wearing a blockchain hat. The yield exists because the capital accepts a real loss risk. The first covered product are Centaura USD protected vaults and protected RWA real world asset vaults with Veda and up shift integrating the protection layer. I always got to get back to the chat. Make sure I'm not leaving anybody out

57:15here. You guys are crushing it with these games. Let me uh let me pull up the board. This is something that you can do also, Blues Guy uh exclamation point and then board. And it'll show the leaderboard. There you go. We got reliable J on his second lap. Struggle heart on his second lap. He's just barely behind reliable J. We have CCP

57:46on spot number 17. Let's go and blues guy on spot number 10. And then we have August 3000 on spot number seven. August 3000, you still here? Are you still here? All right. So, firelight, when XRP starts underwriting risk. And it's funny cuz reliable J got here a little bit later. And he is still in first place, which tells me

58:15that even if you come in a little later to the stream, you still have a good chance of winning. But also, that it pays to show up here, wink wink, when we go live at 8:30 p.m. New York time. It really increases your odds of winning. When XRP starts underwriting risk. So, aggregate staked positions currently have 115 million XRP cap. Product versus token tension appears clearly here. Firelight expands the

58:44usefulness of FXRP and Flare's infrastructure. It's one signature flow requires Flare token from the user. And its fees and rewards are denominated through FXRP or converted to FXRP. I'm so I see the chat moving. I'm so used to looking because usually it's a message, but because we have so much going on, um I really wish Melissa was here. I

59:13know she's busy. I I really realize how much I depend on Melissa as a mod. Um shout out to her for everything she does, even if she's a little busy with work tonight. So, it's one signature flow requires no Flare token from the user, and its fees and rewards are denominated through FXRP or converted to FXRP. Flare, the token, benefits only through underlying network use and the designated protocol fee routes. I didn't say

59:41delegated, it's designated. So many similar words. You ever been that kid in class that they call on to read out loud? I never was nervous, but I definitely would just mesh [music] mess it up. Just absolutely mess it up. Sometimes I do it on purpose just to be funny. But um it makes me uh remember all those moments when I got to read live online for hours. And I love it. That's the crazy part. It

1:00:10wasn't like that when I was in school. I didn't love it, that's for sure. Adoption in the numbers that earned their place. So FXRP September 24th, about 145 million minted. Roughly 130 million is actually deployed in the DeFi, which is a high percentage of the amount that was minted. About 21 million represents on other chains and approximately 7.8 million related to transactions. And what a great time to raise your

1:00:38crypto IQ when the market is just doing other stuff. The hype and the noise goes away and we can focus on raising that crypto IQ. If you're just rolling in, smash that like button. If you want some free rolls, just put I would like some free token rolls so that you can play in our digital board game. Winner gets $10 in free cryptocurrency of whatever currency they'd like. Link to our Discord in the chat. All

1:01:01descriptions, all links are in the description. So the deployment ratio is the meaningful part. Most outstanding FXRP was being used rather than merely displayed, which is great. That means a very active bit of community. Newer milestones are October 6th, Flare said FXRP had passed 150 million minted [music] with more than 90% deployed on chain finance across seven networks, which means if you went ahead and minted, you most

1:01:35likely were doing it so that you could get into the things going on in the ecosystem. Pretty dope. Adoption and the numbers that earn their place. That is project reported adoption data. Not an independent audit. Keep that in mind. Audits are highly important, but it shows September figures did not immediately reverse. They went from 145 something million minted and it went up

1:02:02to 150 million. So, Flare DeFi October 14th, approximately 186 million TVL, total value locked across DeFi. Remember, total value locked is money inside DeFi applications. Oh, now we're going to explain [music] it. So, total value locked measures assets deposited in tracked, cuz it has to be reported, DeFi protocols. It is not Flare company revenue. I think a lot of people see total value locked and have no idea what it really

1:02:33means. This is a good place to raise your crypto IQ. So, it's not Flare company revenue or chain revenue and it is and it can fall with asset prices or withdraw. So, it doesn't always go up. People can move money out of the ecosystem off of First, it would come off of the applications and then maybe even off of the blockchain itself somewhere else and that would cause total value locked to go down.

1:02:59So, stable coins, approximately 45 million stable coin liquidity matters because lending and trading need a relative stable coin unit of account [music] and settlement. 24-hour activity is about 4.6 million decentralized exchange volume, 5,000 active addresses and about 467,000 transaction. Sounds like a very well working machine. The transaction count is substantially relative to addresses. So, automated and protocol activity

1:03:29likely forms a meaningful share of those transactions. This is an inference, not a bot consensus. 24-hour chain fees about $615 in the last 24 hours. It's not very high. Activity exists, but direct fee generation remains small. We do know about some burn, right? We know that there's some burn going on. So, that can help a lack of actual fee. But, what is the real numbers here? The

1:04:03chain can be busy and inexpensive at the same time. Users enjoy that sentence more than the token analysis do. We talk about this constant give and take, push and pull from somebody who owns the token and wants there to be fees and revenue cuz fees equal revenue and revenue has a has a high likelihood of coming into value into the token. So, if you hold the token, you want high

1:04:31fees, but you have to use your brain. If the fees are super high, what did everybody do when Ethereum had high fees? They cried and they they found other things to use. You don't want to drive people away. You're trying to drive adoption. Not trying to drive people into other ecosystems. So, what do you got to do? Got to be less greedy. You got to put those fees down. If you're a user, that's what makes you

1:04:56a user, and that's why you like using the product. That's great. That makes all the headlines and all of the, you know, accolades and metrics that you see in your, you know, big um headlines and stuff like that. That's good for attention, but it can be not so great for the people holding the token. So, where is the middle? Like, where is the middle line for that? That's what we really want to know.

1:05:22Adoption snapshot. We're just going to roll through this cuz this is repetitive numbers, but it's just so you can see it again in big bold letters. Business model and revenue snapshot. There are three separate economic layers here. Applications earn fees, DEX decentralized exchange, lenders, vault managers, and Fireblocks can charge users or strategies. The chain earns fees. Transactions

1:05:45consume Flare token and burn the fee. Protocol systems earn fees. FDC request, F assets, minting and redemption event, designated tags, and future FCC or MEV systems can route value to fire or providers. If you just jumped in, you don't know what I'm talking about because I just explained the entire Flare ecosystem and now we're wrapping it up. All right. So, against the network token market cap above 580 million, also

1:06:18proves the mechanism is still early. Both statements can be true without fighting in the parking lot. No audited consolidated income statements for Flare Foundation, Flare Labs, and the full ecosystem was verified for tonight. Network activity, application revenue, and organizational finance must remain separate. The three economic layers. So, again, we're just trying to consolidate and make this digestible. We have application fees that are paid by

1:06:50pretty much anybody doing anything on the network that is an application. Chain fees, well, these are transactions consumed in the Flare token. The native fee is actually burned. Burn. If you hear the word burn, your ears should perk up if you hold a token. Protocol fees, the FDC and F assets route can fund fire or its providers. What the Flare token actually does. So, let's talk about utility again. This is

1:07:18good if you're just rolling in. Flare token does pay transaction fees. Native fees are burned. Validator staking. Flare token can be locked on the P chain to support consensus. P chain is a part of the blockchain of Flare. A validator requires a minimum self bond of 1 million Flare. Data provider security. It's another utility for the Flare token. So, stake Flare and dele- delegated wrapped Flare help determine

1:07:47which providers participate in their signing way across the FTSO and FDC. And if you don't know what those mean, you got to go back. Got to go back, but do it later. Any new people in here needing some raw tokens so they can participate in the game, just say, "I would like some free tokens so I can play the board game." Or just say free tokens, whatever it is. Let us know that you're here. Hit that like button. So, delegation. Wrapped

1:08:15Flare holders can delegate voting power to data providers and receive protocol rewards while retaining ownership. Delegation is more liquid than P chain staking. Governance. We haven't talked a lot about governance yet. Eligible Flare token participants or participates in Flare improvement proposal. So, apparently there's some kind of eligibility that you have to go through to do that. Collateral. Well, Flare

1:08:42token can support F asset collateral pools and other ecosystem positions. We're still talking about utility and it keeps going. Incentives. Well, Flare emissions reward the validators, data providers, delegators, and approved ecosystem programs. These are real utilities. The investment question is how much Flare token must be bought or locked because of them compared with how much Flare token enter circulation through emissions or inflation, same

1:09:12thing. Rewards and organizational allocations. Token value capture. This is where we get to the the more spicy stuff about is there value being captured for the Flare token. So, we broke down what is what Flare is, what works in its ecosystem, the applications that are involved, the utility for the Flare token. Now, let's talk about the value capture. So, direct and live. Transaction fees

1:09:44are burned Flare. Beautiful. FDC request fees partly route to fire. Fire is something that was built, right? Inside the ecosystem. F-asset minting fees, designation tag fees, and a slice of the redemption fees route to fire. Think fire, think burn. Validator and provider participation requires or attracts staking and delegated Flare. That's more utility. What is indirect, right? Cuz we just

1:10:19covered everything that was direct and live right now. When we do these token autopsies, we very much will mention what is to come, but we're not going to grade our token autopsy based off of something that could happen a week, a month, or 10 years from now. We stick to what is going on right this second. So, more what is indirect, right? Value capture. More FXRP use can create more

1:10:49mints, redemptions, and FDC attestation and transactions. More useful applications increase demand for block space, security, and collateral. Better network economics may encourage more Flare token staking. It's not automatic, right? Or what is not automatic? Is that a trade between two application tokens does not necessarily burn any Flare beyond a very small gas fee. We

1:11:17saw $615 in 24 hours. It's not very much. A Firelight deposit can avoid direct Flare token ownership. That's a little bit of a of work around when it comes to Flare utility, but we know that the burn mechanism that's can that that's associated with that activity does burn some some value which helps Flare. So, in an indirect way, there is token value capture. Application fees paid in USDC or FXRP do

1:11:50not become Flare value unless the routing mechanism converts, burns, or withholds and redistributes them under the defined rules. This distinction is the heart of tonight's autopsy. When you hear the heart of tonight's autopsy, you should be paying attention. The product stack has moved beyond theory. The token link has also moved beyond theory, but not yet beyond the small numbers. So, here is our next illustration and my

1:12:22time to check out the chat. All right. So, what is live now? Transaction fees, Flare is burned. FDC fees, 90% go to Fire, 10% to providers. F asset minting, tags, and redemption slices feed Fire as well. Staking and delegation secures validators and data protocols. Limited or stage staged meaning upcoming, Fyre Lite can skip flare and charge fees in FXRP. That is limited. Apps trade and loans do

1:13:00not automatically burn the flare token. Smart account fees, FCC fees, and MEV capture are staged, that is upcoming, and Fyre may fund growth or operate as a buy and burn. So, the Fyre fund that is being funded through all these different mechanisms can also fund more development and growth, or it can also have buy and burn. It looks like it has both options to it. So, Flare, or sorry, Fyre. Fyre, the new revenue loop. So, this

1:13:34Fyre is rather new, and it stands for Flare Income Reinvestment Entity. With something like reinvestment, you should be thinking buybacks. You should be thinking burns. You should be thinking of investment, which is growth. This is a genius idea. I don't want to I don't want to overstate it nor undersell it. Um this is the type of integration when ecosystems grow

1:14:01and things change, and you build something inside an ecosystem and you find that that ecosystem is disconnected to the original asset because of the stuff that you built. You come and you implement something like this. FIP 16 created it, the Flare Income Reinvestment Entity, Fyre, as the pooling governance framework for the new network derived revenue. Its

1:14:29primary mandate is to reduce Flare token supply as much as possible. Its secondary mandate, or reason for existing, includes repay replacing inflation-funded rewards, supporting asset issuers and application liquidity, and funding Flare Foundation security, engineering, and ecosystem work. Live feeds route include F asset minting fees. FXRP destination tag fees, 90% of the FDC request fees, and 10% of the F asset

1:15:07redemption fees. So, you got a lot of fees feeding into this new revenue loop. As of September 24th, Flare reported 44,632 cumulative in fire. And I believe that yeah, that's dollars. That's denominated in dollars. So, as September 24th, it wouldn't have been live that long. That's pretty good. Any new people in the chat? I don't see any.

1:15:42So, staged routes include more smart account fees. This is to come. FCC fees and protocol level MEV capture, maximal extractable value. Remember, we used to go over all these type of topics. Hopefully, you remember maximal extractable value. So, MEV is the profit available from ordering or inserting transactions, including arbitrage and liquidation. Well, that's going to get captured on the network and put back into

1:16:16that fire, the new revenue loop. So, Flare's plan is to capture selected network positives, MEV, and return it to the protocol rather than leave all of it with the private searchers. Genius. Like, all I can say is that everywhere I look, Flare really is making the right decisions. The people who are doing this work must the developers and stuff, people in charge, they must actually

1:16:44have a lot of experience in blockchain. That's all I can say. So, the governance trade-off is plain. Fire can buy and burn Flare. It can also support growth and foundation operations. Those uses may be sensible. They compete for the same money, though. But, in my book, you kind of win either way. If we're buying and burning, we're winning as people holding Flare. If we're

1:17:13supporting growth in the foundation operations, we're also winning because there's more stuff for people to come and want to be a part of the ecosystem. That's great. Primary mandate is not the same thing as every dollar burns a token, right? So, don't be confused that everything is being bought and burned or everything is going into product, uh, you know, growth. It's a little bit of both, and it has

1:17:38its own discretion. And it seems like it even has some governance. So, Fire is initially administered by the Flare Foundation. So, who's in charge of in charge of Fire? It is the Flare and Foundation. After the first year, the community can vote to move it to a joint governance. But, that chance requires approval from at least 50% of the total inflatable supply, not merely 50% of votes cast. Where'd everybody go?

1:18:07I never trust the YouTube numbers. YouTube says we just went from uh, 15 people chilling with us to five people chilling with us. I just don't believe that 10 people just randomly left after being here for like an hour. Anyways, it's pretty cool that after a year, there'll be opportunities to move this Fire to a joint governance. And that would make it more likely for

1:18:38things to get burned if you ask me. Tokenomics and current supply, we've been over it. I'm just going to piece it together. The price 0.0067 as of right now, that's very close to the exact price. 583 million market cap, just a little bit above a half a billion. We have a approximately 81% 81% of current total supply. And the current total supply is 106 billion Flare tokens.

1:19:08And that's all we really need to talk about right now. Cuz we've been over tokenomics already a good bit. So, current supply is not a cap, right? So, there's no cap on supply, on maximum supply. Inflation Flare drops and burns. This is just useful information. FIP-16 passed in April with a 98% support because it is common sense. Annual inflation fell from 5% to 3%. Beautiful. And the yearly hard cap fell from 5 billion to 3

1:19:39billion Flare tokens. Applied to an inflatable base around 87 billion gross annual issue issuance roughly 2.6 billion Flare before exclusions and burns. And the cap was 3 billion uh Flare per per year, right? Balances and burn addresses, penalties, pools, and fire can be excluded from the inflatable base. So, realized issuance can be lower than the headline 3% rate. Doesn't have to be a 3% rate. All native

1:20:12transaction fees are burned. A July hard fork increased the base fee 20x while keeping ordinary transactions very expensive. Just more genius work. Um I didn't know that I was going to come on here and get my pom-poms out and be a cheerleader for Flare, but the more I read about this, the more absolutely on point it is. What we see is a lot of times ecosystems come out, they're really cool at first, they do updates, new things happen, and they just like

1:20:39shoot themselves in the foot, as a figure of speech I mean, over and over and over and over again, and it just is like what are we doing? So, DeFi Lama research reported about 16 million Flare burned through transaction fees year-to-date by early September. The problem here and the burn rates are going to go up, right?

1:21:03But, 15 million compared to 3 billion is a very small amount. Now, that burn rate has risen sharply, so I think next year's report is going to be far more bullish, but it remained far below gross annual issuance in the token terms. Flare drops ended January 30th. That removed a major reoccurring distribution event. Protocol rewards and incentive pool emissions continue. So, the airdrop ended does not mean the new supply ended. Emissions didn't end, but

1:21:35airdrops did. The correct net supply test is Flare minted minus Flare burned minus issuance permanently withheld measured over the same period. Where my new people at? Who wants to play our digital board game? I'll give you some free rolls. We have mini games happening constantly. Those mini games are how you get to roll in our digital board game, and you can change your piece to be whatever you want it to be. Matter of fact, I'm

1:22:09going to go ahead and roll. I think I have one more Yeah, I have one more roll. Let's see. I only gave myself two rolls. So, the net supply here is Flare. And this is like this equation that I'm giving you works for this obviously, but this is kind of for any token that you're looking at. You have the flare that's minted on chain, aka emissions or inflations, same thing,

1:22:36per year, per month, whatever you want to calculate it at, minus what is burned and the issuance that's withheld. That gives you rather a negative or positive circulating supply increase or decrease. Allocation and concentration. While the initial public distribution totaled about 58 billion Flare. We're talking about token generation, right? So, at the beginning of the Flare token, about 28.5 billion

1:23:03Flare. Including an initial 2023 distribution and the 36 monthly Flare drop. A separate 20 billion Flare incentive pool was categorized under the broader community allocation, but exists to fund protocol and ecosystem incentives rather than representing tokens already dispersed among ordinary users. So, these tokens were not airdropped. They are put aside. Large Genesis categories also went to

1:23:37Flare Foundation, Flare Labs, and Flare Venture Capitalist Fund. Founders, employees, future team members, and advisors and backers were given tokens as well. Together, those organizational and contributor categories represent roughly half of the original allocation before the later burn adjustment. Allocation does not equal present control.

1:24:04Some categories cannot vote. Schedules differ, and tokens may have been distributed, burned, staked, or sold since that Genesis. So, you can't look at the Genesis of the token distribution as where are all the pieces on the board are sitting right here, right now. A 2023 pie chart is therefore useful history, not a live holder map. The evidence still matters because supply concentration can affect governance, delegation weight, staking

1:24:36economics, and market liquidity. A current entity adjusted ownership map would improve this analysis. Wallet counts alone cannot provide it. It's like we have a picture of where all the pieces on the board were before the game started. And then the game started and now we have no idea where they are. Where all my undergrounders at? If you're just rolling in, drop something in the chat so I know you're here. If I

1:25:04see new people in the chat, I will drop you some tokens and you can actually play the games going on. Or you could just play the games and earn tokens that way, too. Winner gets $10 in free cryptocurrency, whatever they choose. Allocation is history. So, 28.5 billion Flare. Initial public distribution includes fair Flare drops. 20 billion Flare separate incentive pool.

1:25:31So, the Flare drop sounds like it was about this almost 29 billion Flare. Governance team and execution. So, Flare, we're getting into some of the facts. Flare was co-founded by Hugo Philion. Philion. Philion. I don't know. Hugo, we're going to call him Hugo Hugo, right? So, Flare was co-founded by Hugo and developed through Flare Foundation and Flare Labs. The project has shipped mainnet. It is shipped Shipped means it

1:26:04actually built and came out with FTSO FDC stack, F assets, smart accounts, cross-chain FXRP, and the FIP 16 tokenomics change. That execution record deserves a lot of credit. It says credit, but I'm going to go with a lot of credit. So, token governance can approve Flare improvement proposal. It's what it's all about. And it had 98% support for this proposal. Support gave

1:26:34the economic redesign a strong formal mandate. High approval is not automatically broad participation, though. A large allocation plus delegation voting can be concentrated and influence. They made the right choice. That's all that matters to me. So, FIRE Flare's What is it? Flare's reinvestment entity.

1:26:58What does the I stand for? So many abbreviations to remember. Uh it's a lot. So, FIRE begins under the foundation administration and may later move to joint control with the governance. The planned maximal extractable value road map also starts with a designated builder, initially connected to the foundation before later compensation and confidential computation stages. Those will be rolled out later.

1:27:29Validators would still have to verify blocks, but block construction would become more coordinated. That may improve MEV capture and transparency. It also introduces governance and censorship questions that should be judged from the implemented system, uptime, [music] auditability, and override mechanisms, not from the adjective verifiability. Flare's best moat. So, now we're getting into how does Flare stack up against its

1:27:58competitors? And who the heck is even competing with Flare? After what I just read, just through my basic knowledge of the space, I may be missing somebody. That can happen. I don't know everything. That's for sure. I learn with you guys. Um I don't know anybody who's competing with Flare. Like really competing with them. Now, there's competitors in like

1:28:21single categories like vaults or strategies or yield or something like that. But who's really competing, you know, competing with Flare? I don't think so. So, Flare's best moat is not EVM compatibility. That feature is now roughly as exclusive as the power outlet itself. The moat is a combination of enshrined price and external data protocol secured by the same provider set as the network.

1:28:50A working route from XRPL payment to programmable FXRP assets on F-assets. Smart accounts that preserve the XRPL wallet experience, live liquidity, lending, vaults, cross-chain markets, and protection product around FXRP. A tokenomics framework attempting to route data and asset activity back to the Flare token. Pure genius. Competitors attack individual layers. This is what I was saying from the very beginning about how

1:29:27you have maybe different specific categories where people can compete with Flare, but there's no real competitor to Flare if you take in everything that Flare is. So, you have Chainlink and Pith, which are data providers. Then we have Layer Zero, Axelar, and Wormhole. They move messages or assets. And then we have like general purpose Layer Ones and Layer Twos offering deeper DeFi. You have XRP native sidechain systems that

1:29:57make XRP useful without routing every experience through Flare. You have Flare's defense is vertical integration and focus. Its weakness is that competitor does not need to copy the entire stack of everything it's doing if users simply prefer a path to one function that they actually need. So, it needs to stay highly competitive everywhere, which is a tall order, but what I've seen so far really tells me that Flare seems to have the right

1:30:25people doing the right things. So far, so good. So, here you go, competitors. If you're talking about data, you have Chainlink and Pyth. If you're talking about asset routes, you have like LayerZero, Axelar, and Wormhole. Mind you, that LayerZero actually is integrated with Flare. And then you have applications like the XRP Phi ecosystem, and of course that's going to be a bit EVM Layer 1s and 2s, and of course the XRP actual

1:30:54ledger itself. Security and decentralization, well, Flare's current list of 96 infrastructure entities. The network's data provider system anticipates about 100 selected providers with weights derived from P-Chain stake to wrapped Flare delegation. Confirming FDC and system results requires more than 50% of the signing weight. It's kind of some governance stuff, but it comes into

1:31:23both security and decentralization. Validation is open to participants meeting the technical and staking requirements, including a 1 million Flare token self-bond. The network remains in the documented phase two of progressive decentralization. Some staking reward operators are still calculated off-chain and distributed on-chain. That is a more decentralized than hard-coded launch set and not the

1:31:56finished date described for phase three. The audit history is extensive with F-Assets and smart accounts have reviews from OpenZeppelin, Zellic, Coinspect, and Immunify related programs. So, a lot of audits have gone on over the history of Flare. And it's been around since at least 2023. So, FTSO has Halborn Halborn and Coinspect work. FDC and the data layer have Coinspect and FYEO reviews. The FIP-16 contract and FCC component have

1:32:302026 Zellic reviews. These are all auditors and people who audit, right? Audits reduce known implementation risk. They do not remove Oracle manipulation, collateral failure, liquid- liquidation gaps. I was going to say like four things there. It doesn't remove risk, right? Smart account bugs, external chain congestion, bridge OFT risk, or the possibility that several provider identity- identities share economic control

1:33:02concentration. So, four security layers. Well, you have the provider consensus, the validator staking, audits, and the remaining risk in other places. Then we have dependencies, market liquidity, and the route out. So, FXRP depends on the XRPL functioning. If the XRPL ledger were to stop functioning, that would really mess up that whole ecosystem. I don't think that'll happen, but we did just see a bot an AI agent caught

1:33:32an exploit on XRP. And then Richard Heart came out and started taking a bunch of jabs at everybody, which was funny, and then he gets arrested like the next day. Uh, that coincidence? I'm not sticking up for him cuz I don't know what- I don't even know what they arrested him for, but I think it's funny that XRP had a problem and then Richard Heart comes out talking smack and then they arrest

1:33:55him in Turkey like the next day. Maybe 2 days went by. Mhm, it's a little odd. So, moving FXRP to another chain adds layer zero and its verification configuration. Firelight adds its own contracts, risk consortium, slashing rules, covered events definitions, and withdrawal windows. What we're really saying here is that the ecosystem in DeFi is very vast on Flare ecosystem. And that means that there's risks all

1:34:25over the place. But, that's normal. There's just a lot of risks because there's a lot going on and your risk is determined on what you're dealing with. Like, you might not be trading over on one of the applications. You might be doing something else. So, your risk for you personally lives wherever you're actually participating. Its users are paid for accepting risk, not for discovering a yield faucet and rest of finance

1:34:53overlooked. Sorry if I just yelled into the mic. FLR Flare token holders face a diff- a different exit question, right? CoinGecko showed roughly 2.6 or 2.96 million in 24-hour trading volume against 583 million market cap. So, what is this saying? We're talking about 24-hour trading volume and the market cap. So, what does that really mean those two numbers in

1:35:21relation to each other? That does not prove illiquidity on every venue, but it warns that paper valuation cannot all exit the displaced price. Effective liquidity, exchange concentration, and order book depth should be checked before position size. Market cap remains multiplication, not a standing cash offer from the universe. Flare Foundation, Flare Labs, and venture capitalist fund receive a large token allocation, giving the

1:35:56ecosystem resources for development and incentives. Token resources are not the same as diversified cash runways. Their dollar value moves with Flare, and selling them can create market pressure. FIRE We are We just talked about what FIRE is. I don't know why I can't remember what the I stands for. It's Flare investment. No, cuz the R stands for reinvestment. I know it's Flare reinvestment entity, but

1:36:31what is the I for again? All right, so anyways, FIRE is its new revenue loop, right? Is designed partly to reduce reliance on inflation, and partly to fund network security, applications and foundation operation. That is a reasonable sustainability objective. It also means FIRE's revenue are not purely holder distribution streams. What we did not verify is the current audited treasury statement separating cash, stablecoins, Flare

1:37:05token, restricted assets, annual operating expenses, or runway across relevant organizations. I knew going into doing this deep dive that it was going to take some time, that we were going to have a lot of slides. 212 slides is a lot of slides for a token autopsy. But, I got to be thorough. I got to give people who are going to maybe watch this video in the future the best of my ability and performance

1:37:32to actually fully understand all the different pieces without going completely overboard and making this a 24-hour stream. So, we're getting there. We're at 145 out of 212. Probably 12 to 15, if not 20 of those slides at the end, are probably all like sources and stuff like that, right? So, the honest conclusion is neither the treasury is empty nor the treasury is

1:37:59safe. We don't know. It is that the public token allocation is substantial while liquid financial runway remains insufficiently transparent for a high confident grade. Valuation, the product evidence has arrived. Cash scale has not. So, we've got a lot of things. What we're really saying here is a lot of things are happening that are very good for Flare. But, it hasn't been around long enough to really tell us how much is going to

1:38:27be generated or how good it's going to be for Flare. And that produces a rough market cap to total value locked ratio near 3.1x. This is context. Total value locked includes user assets rather than protocol earnings, and the composition matters. Understanding what these different numbers mean is a big part of raising your crypto IQ. A chain with highly qual- high quality reoccurrence fees deserves a different multiple from

1:38:54a chain tempor- temporarily renting deposits with incentives. How long have I been talking for? Ah, man. So, Flare's cumulative $44,632 proves live revenue routes, but is financially tiny relative to the market value of like $583 million. Chain fees of roughly $615 in 24 hours tells the same story. Current valuation depends heavily on future activity, security demand, and adoption rather

1:39:29than present cash-like token accrual. The valuation is not absurd merely because revenue is early. Infrastructure is often valued before maturity. It is also not justified merely because XRP is large. The missing bridge is scale. How much verified data, F asset activity, and MEV can become reoccurring network earnings, and how much of those earnings actually reduces net flare supply?

1:40:02Catalyst and required evidence. Catalyst are things that are going to boost it and keep it moving. A lot of the stuff we just talked about is technically in my opinion catalyst because it is new and it's just coming out. So, fire light expansion, more protects vaults, and paid coverage could deepen FXRP utility. The FCC deployment on flare, private reserves, NAV, credit and compliance calculations could open institutional use cases.

1:40:31Additional F assets, things like BTC, Doge, or other non-smart contract assets would diversify the system beyond XRP. That would be a really good move. Smart account distribution, more wallets, exchanges, custody integration could reduce onboarding friction. Fire and MEV, a scaled revenue loop could offset infla- inflation and support buybacks and burns, super bullish. XRP fi, DeFi on XRP on the Flare ecosystem though. Uh, that's the twist. Beyond Flare,

1:41:02cross-chain FXRP can reach deeper credit markets. The bull case. Well, I think you can see the bull case, but I'll lay it out for you. Flare becomes a standard programmable layer for XRP. And later, other non-smart contract assets. FTSO, FDC, and FCC attracts applications beyond XRP DeFi. Fire revenue grows enough to replace a meaningful share of inflation and buy or

1:41:33burn Flare tokens. Staking demand rises because the network secures valuable data assets. The neutral or middle-of-the-road is that FXRP remains a credible niche success. Flare sustains a mid-size DeFi ecosystem and tokenomics improve gradually. Flare token remains necessary for security and fees, but direct revenue accrual grows slowly and ongoing issuance absorbs much of that benefit. Feel like I said it

1:42:05absorbs very weird. Bear case. So, this is the bear case if there is going to be one. FXRP or XRP DeFi adoption concentrates and subsidizes the vault. Users prefer the XRPL native or competing route. Additional F assets arrive slowly and fire revenue remains tiny. Flare inflation and organizational supply exceeds burns, while the technical stack remains more impressive than the token economics.

1:42:38I'm still bullish. These are conditional systems, not price predictions, right? Things that it's doing right. Things that Flare has got right. Live differentiate differentiated data infrastructures rather than a generic L1 slogan. Strong FXRP minting and deployment evidence. Smart accounts reduce genuine user friction and multiple audits across the core stack. Flare drop ended inflation is now reduced. Live fees route now connect to

1:43:08FDC and F asset activity to fire. Clear admission from Flare and some tokenomic components remain staged or coming in soon. What is red flags? Well, we would say a non-fixed maximum supply has potential to be a red flag. It's not that big of a deal to me in this application. Current chain fees and fire revenue are small relative to the market value. Some flagship users flow bypasses direct flare ownership. What we're saying is

1:43:39um FXRP doesn't require the flare token directly directly to to have ownership, right? Of the of of the FXRP. Or use those ecosystems, but they do come back around in fire revenue. Heavy ecosystem dependent on XRP fi. I think this is just the beginning though. I think that they're going to be using um other tokens that are wrapped as well and you're going to be bringing a lot of

1:44:07different stuff into into flare. Complex multi-layer collateral and bridge risk. Large organizational and contributor genesis allocations. Foundation control over fire in early MEV implementation creates centralization tradeoffs. We have some unresolved evidence here. And the open verdict. So, the project has earned curiosity. The token has earned watch list. Neither has earned

1:44:35immunity from arithmetic. Product to token relay. I got to get through some of this stuff. It is going forever. If a story jumps from step one to step four, the missing middle is not detail. It is an investment thesis. The transaction fee burns flare. Three types of capture. Conditional. And FXRP mint creates fees that enter fire, which may burn or buy or may fund other improvement purposes. Narrative only. An

1:45:08application succeeds on flare, but no defined mechanism changes the flare token demand, supply, or holder claims. And a lot of that was repetitive, so I went through it. So, it gets a 73 out of a 100. I I honestly thought it would score a slightly higher. I I it I thought it had a good chance of getting a pass verdict. All of these slides are going to be there for you to go through. Along with a typed out version as well

1:45:35that's slightly different. So you're going to be able to skim over this stuff when I put it all together and put it inside of you guessed it, the Discord. So Flare has live differentiated products, FTSO V2. All right, so this is utility adoption. I'm not going to read it all cuz it's so repetitive. We've been over this a lot of times. But it got a 17 out of 20.

1:46:01Which is a great score for that. Token value capture is a 13 out of 20. The main reason for this is that we are scoring it based off of what it has right now. I think in 6 months to a year this would change greatly and maybe we'll do a re update on it. So 9 out of 15 tokens in supply, competitive mode 13 out of 15. Security an eight out of 10. Catalyst and execution eight out of 10.

1:46:33Risk and unanswered questions five out of 10. So 73 out of 100 is the score and why is it on the watch list? I think anything above a 70 is pretty good. But it's not quite a pass verdict. And all of this will be here for you again. Aave passing, we have quite a few above 70 that are all worth noting. I think anything above 70 is definitely worth looking at.

1:47:10Aave being the only thing that passed. So we're going to go ahead and move on from there. I appreciate everybody coming to the stream. I would really like to take this for another hour or two for sure, but I'm not going to be able to do that for some some reasons. There's a lot There's a lot to flare. All right, flare could be a 6-7 hour stream pretty easily. I don't want to do that to everybody. Also, I can hear my daughter

1:47:34very upset screaming in the other room, and I'm going to need to go see what's going on. But, I didn't cut it short. We did finish what we had going on. Tomorrow is what? Thursday? So, we will have one more token autopsy. I wrote down what we were doing. So, let's see. We did Melissa's coin. We did Reliable J's coin. We did a coin for uh tonight flare for Blues Guy. Struggleheart, did you give me a coin?

1:48:09And I not write it down? Struggleheart, calling all Strugglehearts. Did you give me a coin to do? I feel like there was a coin to do and I left it out. Please, everybody pay attention to the Discord. I post in there a lot, >> [music] >> and I sometimes get more you know, interaction than others. Um would would really love it if people would interact

1:48:32a little bit more on that Discord, so we could stay together. So, let's go ahead and wrap up our games. I will do that now. And we are going to do Let's do board. So, everybody can see where all the chips lie. I really want like a black background here. So, let's go to window capture. Bang. All right, so

1:49:09let's wrap this up. Then, we're going to auto wild off. All right, so the games are over. It's winding down. [music] We are going to announce the winner of that free $10. If you have any rolls, use them now. If you have any rolls left, you're going to want to use them right [music] now. Hold on 1 second. All right, sorry about that. That gave

1:50:23everybody an opportunity though to get a couple of rolls in. And let's announce that winner. Who's the winner? All right, well, that's the winner for tonight. It is reliable J. I really have to run quite quickly unexpectedly. Have something coming up. I love those graphics. Reliable J is the winner. Shout out to everybody who participated. Love all my undergrounders. See you in the Discord. Sorry, I got to run at the

1:51:04last minute so quickly, but my daughter is sick and upset. I got to deal with it. Underground crypto out. Hope you enjoyed the token autopsy.