Flare Networks CEO Hugo Philion shared his perspective on Flare’s FIP01 proposal. In a tweet, he discussed his views on Flare’s controversial FIP01 proposal posted on January 22.
Hugo Philionz started his tweet pointing that he understood why some people were upset about FIP01, claiming that it felt like a betrayal. He then listed a series of problems they were facing.
Philion made an effort to clarify that the goal is not to dismiss these emotions, but rather to address the shortcomings of the previous model to make it easier to transfer tokens from people who don’t want them long-term to those who do.
The plan sought to improve the token distribution model, reduce inflation, and promote network usage. However, he acknowledged that some people might feel misled by Flare due to this suggestion.
Phillioin’s architecture, according to the company, was influenced by bitcoin.
The architecture aims to give infrastructure builders more tokens than they previously thought they would receive as compensation.
Flare’s CEO then highlights that it has been “the only major VC-backed project built around the XRP ecosystem” and that XRP holders only received FLR for simply holding it.
Philion offered further insight into how difficult it was for Philion to persuade venture capitalists of their commitment to XRP-related projects to acquire funds.
However, despite the challenges, he expressed confidence in FIP01 as he thought that if implemented correctly, it could “give value to the whole sector and maybe even extend it” completely.
Flare’s governance proposal was consistently challenged by Ripple CTO David Schwartz, a compelling voice in the XRP community.
Additionally, Schwartz accused Flare Networks of using the XRP community as an engine for growth before committing his ties to the group once he no longer needed their support.
