I would like to add another consideration, which would be the impact on potential network participants that are not fortunate enough to receive the Spark airdrop. These considerations include the impact on the mechanism design behind the Flare Network, the accuracy (or perceived accuracy) of tax advisory opinions on the delayed distribution model, and the perception of Spark airdrop recipients. The blog issued by Hugo Philion titled, Applying Governance to the Spark Distribution, states that many considerations should be taken into account by voting Spark token holders, which will not include Spark allocated to Flare Limited (see above screenshot on the left). Simply put we need to see the analysis commissioned by the Flare founding team. Additionally, this analysis or the current understanding of it is entirely up to debate as seen across social media. I would liken this to purchasing a call option however, we will need to see who the tax consultation was performed by and what their analysis entails. This would mean there would not be an income tax burden, but rather a capital gains one when the Spark tokens are sold by a recipient. The name of the individual or group from which the analysis was commissioned has not been released, but described by Hugo Philion as being “high-brow” and “a respected tax scholar.” This analysis in effect states that if recipients were awarded the option to opt into future airdrops and pay for the right to receive them at a future date that this would in effect serve as a purchase of those tokens at a substantially low cost tax basis.
![flare airdrop flare airdrop](https://www.americanspecialops.com/images/usaf/mc-130e-flares.jpg)
![flare airdrop flare airdrop](https://www.altcoinbuzz.io/wp-content/uploads/2020/11/pix-parachute-soldier.jpg)
The founding team has commissioned analysis on the possible ways to distribute the Spark airdrop to avoid burdensome income taxes for recipients in these jurisdictions. There has been a growing concern over the tax implications of the Flare Network’s Spark airdrop distribution through the XRP community for certain jurisdictions (i.e.