On March 5, 2024, Flare hosted an X Space to introduce two exciting projects: XDFi and Kinetic.

During the call, Santiago Velez (Vice President of Research and Development at XDFi creator Sindric Solutions) shared insights into their KYC Token technology and tokenomics. Additionally, Jake Hunsbusher, Core Contributor at Kinetic, and JD Gagnon, co-founder of Rome Blockchain Labs (RBL), unveiled Kinetic’s launch plans for 2024. The call concluded with Hugo providing Flare’s latest updates, discussing the governance proposals in progress and the release of the Flare research paper into decentralized AI.

Replay the X Space here:

https://t.co/m1nJ7RO5IA

— Flare ☀️ (@FlareNetworks) March 5, 2024

Introducing XDFi and Kinetic

“The need for a solution like KYCT arose from the vulnerabilities exposed in the 2022 FTX collapse, which highlighted the risks of centralized models in DeFi,” explained Santiago.

XDFi’s focus on provable compliance through KYCT, which stands for “Know Your Customer Token”, is designed to address user concerns about counterparties in a peer-to-peer environment. Think of it like a dating app, where verified profiles establish trust before interaction. Similarly, KYCT functions as an ongoing token that proves your eligibility as a counterparty, eliminating anxieties about the origin of funds and preventing illegal activity. To further foster innovation and adoption within the community, XDFi plans to open-source the KYCT technology to foster wider adoption and customization.

Kinetic aims to provide a strong foundation for DeFi on Flare by enhancing security and decentralization in lending and borrowing. A secure and reliable oracle solution like the FTSO fosters accurate settlements and liquidations within DeFi protocols.

“I am enthusiastic about the potential of unlocking idle assets through Kinetic. We envision playing a key role in facilitating the dynamic utilization of these digital assets, allowing users to continuously earn and participate in the Flare ecosystem through various DeFi solutions.” – Jake, core contributor at Kinetic

Unlocking New Possibilities with FSP and FTSO Scaling

The following discussion centered on the upgrades proposed in Flare’s current governance proposals:

• Flare Systems Protocol (FSP): A new core system designed to increase the efficiency and ease of use of Flare’s protocols by unifying the smart contracts for validation, voting and rewards, amongst others. It will also enable the relay of decentralized data provided by Flare’s data acquisition protocols to other EVM chains.
• FTSO Scaling: This proposal enables the Flare Time Series Oracle (FTSO) to support up to 1,000 data feeds with updates every 90 seconds.

Key benefits of FSP and FTSO Scaling:

• Unlock innovations: The FTSO’s enhanced capacity opens doors for dapps to integrate with real-world asset markets, including commodities and other asset classes. This could allow users to participate in new markets and hedge against various risks.
• Cross-network data relay: FSP paves the way for relaying FTSO data to other blockchains, effectively turning the Flare network itself into a provider of data to other chains, and creating new potential revenue streams for Flare infrastructure providers plus their stakers and delegators.
• Broadened ecosystem access: FSP will allows a wider range of participants to access Flare’s data, potentially fostering further development and adoption within the ecosystem.

Detailed launch plans & tokenomics

Kinetic:

• Launching the Joule Token in Q2 2024 on a centralized exchange with a fair launch approach.
• Users can participate in the Kii Stake program, where they can stake their Joule for Kii, qualify for tier-based rebates, and earn block rewards for voting in strategic motions brought forth every 45 days by the Core Team.
• Early adopters will receive significant incentives.
• Phased market launch starting with EETH, WFLR, and EUSDT, expanding to FAssets.
• Learn more in their Litepaper. Follow Kinetic: https://kinetic.market

XDFi:

• Introduces a novel tokenomics design focused on participation and ecosystem benefits over token speculation.
• Utilizes non-transferrable governance tokens earned through cumulative participation.
• Implements a unique referral system that incentivizes the community to bring in new users and encourage ongoing governance participation.
• Shares fees with users contributing to protocol growth.
• Stay tuned for further updates from XDFi: https://xdfi.io/

Flare News and Updates

Hugo shared some of the latest updates of Flare:

• Flare Systems Protocol will be implemented if FIP.06 passes. This new system simplifies operations and unifies Flare protocols under one umbrella, benefiting developers, delegators, stakers, and network users. It also paves the way for data relay to other blockchains, potentially turning Flare into an oracle and message passing service with new revenue streams for validators and stakers.
• STP.06 and FIP.06: The SIP.02 and STP.06 proposals have been approved. FIP.06 will be concluded on March 8th. Vote if you haven’t: https://portal.flare.network/voting.
• Upcoming Events: Flare will be attending ETH Oxford this week and will have a hacker house there. We will also be doing side events in London and Brussels.
• Early investors reinvestment: Early investors in Flare have agreed to support the network further by imposing conditions on their token sales and reinvesting 50% of the proceeds back into the Flare ecosystem. Learn more.
• Decentralized AI research paper: Flare Co-Founder & Chief Scientist Dr. Naïri Usher and Research Scientist Horia Magureanu have released a new paper introducing Consensus Learning, a new way of doing AI in a decentralized manner, which we believe is safer and more accurate.
• Technical Documentation: Flare has released technical documentation and code examples, including boilerplate code for the State Connector, to help developers get started using Flare’s novel protocols.
• Stay tuned to our Discord and X for future updates and don’t miss the next exciting call.