X space: FIP.16 Implementation: what staking, FIRE, and MEV mean for FLR holders

[00:00:00]Okay, Phillip, I guess we can start it.

[00:00:03]How have you been? Um, yeah, let's do a quick intro about FIP 16 and where we are.

[00:00:13]>> Um, yes, I've been good. It was um a busy half a year, let's say, but it's been a it's been a ve very rewarding one. We've done a a bunch of stuff and as far as FIP16 goes, it's pretty much on track and we're on Tuesday we did the last thing. Next Monday we did the last thing on the on the node level. Next Monday we're doing the final thing on the FSP level and then it's just ramping up the ME and moving all this to fire. So um just just to recap on some stuff. So FIP16 pretty much fully revamped the economics. What it means is we a we firstly created a much different inflationary schedule. So we lowered the inflation from 5% to 3%.

[00:01:05]We limited max inflation to 3% of 100 billion. Um we're increasing the FDC fees because those are the things that are used outside of Flare. But they really need to reward flare people that stake on flare, people that delegate and also flare data providers. And we also did some other stuff. So specifically we constituted fire. So the flare reinvestment entity with the main point being that we now use the fees that acrew from different protocols F assets in the future FCC in the future FCE to strengthen the ecosystem in whole and also and that's probably going to be the most important thing that we're going to be talking about today we changed the way how vote power calculation works by moving much more power to the staking part to Pchain staking which is much better than before because this provides a much healthier ecosystem, much healthier nodes and also aligns the incentives of everyone. So those are the things and we're pretty much at the end and on Monday we're flipping the penultimate switch and then it's just getting the me on ramp. And how do we get the me on ramp? We're bringing new projects. We're bringing new things.

[00:02:26]We're bringing new users. And we're just with each and every new users. We can extract more out of everything without extracting this really, but we just capture the value that's already in the system, making the system more efficient, but also making it serve FLR holders.

[00:02:47]>> Yes, exactly. I think people hear extraction from me and they go like, "Oh, this is this is a bad thing." Uh perhaps we should spend some time at some point explaining a little bit more.

[00:02:58]Um however, it was a wonderful recap. Uh thank you for that. Um I I guess that you know if you're a Flare holder or participant in the ecosystem, you're pretty much aware of these situations.

[00:03:11]Uh so I think it was great to have this high level recap. Now the next question would be uh perhaps related to you know users first, right? because okay this is a big change and it affects everyone right providers builders uh and users of course what are if I'm a regular uh holder of FLR and I don't have much context what are the main things that are important for me to know >> well the most important thing is that a inflation dropped which means that it seems that like you're getting a bit less rewards no matter what you're doing and that's crucial because you want to make flare less and less inflationary.

[00:03:55]We want to create less new flare. We want to make sure that we keep this value inside the ecosystem. And secondly, that's the crucial thing that we'll be discussing today is the change that's really going to happen is that Cchain delegation, so WFLR is going to be much less prominent compared to the Pchain delegation. That is where you have to move FLR from Cchain to Pchain and then delegate so to speak stake to node operators. And what we're doing is we're making this Pchain stake part affect the vote power of data providers of the whole entity system much more which means that you'll be getting more rewards from the things that you've staked on Pchain and stake delegated them to data providers versus your WFLR.

[00:04:46]It's still one to one. So one FLR on Cchain can always be converted to one FLR on Pchain. But here on Pchain it holds much more power. It has a greater impact on FDC one crucial component on FTSO the second crucial component on registration weight on signing weight on all these things and from if you really need to hear two things A your rewards have probably dropped and B you should stake because this is how you're getting the majority now.

[00:05:24]Okay, so that was super insightful. I would imagine uh some people will start switching from uh delegating to staking naturally, right? And this is the incentive it seems. Uh and then of course you might have some people concerned about what happens with the providers, how this affects them. Uh why is taking instead of delegating? I personally do a little bit of both, but I want your perspective on this.

[00:05:50]So delegating is usually a bit easier because you just got WFLR, you delegate it to your designated data provider or maybe two in a certain percentage and that's it. You just forget about it.

[00:06:04]Staking takes a bit more time um because you have to move stuff to Pchain. But once it's there, restake procedure is very simple. You go to Flare portal. You go to your wallet that you're most comfortable with using. You select the entity. You select their validator and you stake to their validator to a specific amount of time. Why is that important? Firstly, stake is locked. And that's crucial from for the network longevity, but also crucial for how we for how we calculate what do we deem important inside the ecosystem. By locking your FLR, by locking and staking it to a certain entity, you pretty much say, "Look, I'm trusting this entity to provide not just the block building thing as is the usual thing on normal blockchains, but you're trusting it to provide good prices, good FDC data, and in the future also good and frequent Flare confidential compute updates. And this is crucial for the ecosystem because you have to select a good entity and you have to do this for a longer period of time. You can't just move which is very important for security reasons. You can't just create an enormous amount of delegation to a specific data provider and then do some funny business. In this way you have to lock your FLR to really be included as part of the entity that can vote. And this is important and the whole fire the whole FIP16 proposal was built on top of this. It was how do we align all the all the stakeholders to look in the same direction to have the same vision to really point into the same thing and this is okay I have some FLR I want to stake it to a certain provider to provide all those necessary things for the network and I'm and I'm going to have to do this for a longer amount of time to really prove the dedication to the network and only by doing this the entity that the data provider the The node gets the ability to propose new blocks, gets the ability to provide prices to the FTSO and gets the ability to impact decisions on the FDC level.

[00:08:18]That's the this is this ultimate same vision, same D direction, same meaning.

[00:08:26]I think this is amazing but because it incentivize like you mentioned everyone to go like on the same direction and aligning incentives. Um but I I do want to clarify like behind choosing a provider now it seems like it's going to be critical. Well it has always been very very important but now it seems like you know it is a very good time to actually look at the data. What would you recommend? Like obviously everyone is free to do as they please. U some people just want to delegate to providers that they know already. That's fine. But in general, do you have any recommendations about this or where to look at the data? What criteria should be important and what not?

[00:09:10]>> So the first thing to look at is to take a look at the flare explorer and see if they are committing any offenses. Do they have enough passes? Do they run a validator? Do they frequently do the FTSO updates? Do they have the FDC running and so on. So take a look at the at the Flare Systems Explorer and see if the provider you want to stake to is good provider. That's the first thing.

[00:09:35]The second thing is you can go a bit deeper and not only see if they check the boxes and the so-called minimal conditions, but you can take a look and see if they provide good data. So for each data provider, for each entity, you can open again the systems explorer or one of the many tools that the community has developed. I personally frequently use um the something that FTSO AU um done. So the uh the flare metrics where you can take a look at providers, you can take a look at the statistics and so on.

[00:10:08]There's also a data tool by flarespace when you can go and take a look and there's a bunch of other tools that I've missed and I've seen in the past. I just don't recall them by heartbait. But take a look at your provider. Take a look at somebody you wish to to choose. Take a look at their history. Take a look at their brand. What do they do? Take a look if they're colluding. Take a look at the forum.flare.network when data providers do have some opinions on what's happening. But in that way you can not only see if they meet the minimal conditions but you can see if they pretty much do things correctly. Do they collude? Do they just copy the prices and so on.

[00:10:50]>> Yeah I I'm seeing a lot of providers are really improving because of this in the sense of they are actually showing more and more data and trying to make the case hey stick with us because you know our performance is very good. And I think that long term this is this is the right direction. And you know I like you mentioned there is a bunch of tools that are already there. Some are built by the community. Um I'm going to see if we can work on collecting some of of those. Of course it is up to you as a user to make those decisions. We're just here providing the information and you ultimately are responsible uh for what you're going to do with your funds. And um okay, I think that that was clear. Um guys uh pause for a moment here. I'm checking here some of the questions. I am going to go over some of them by the end of the space. Right now what I need from you is like if you can uh you know give a a reshare to the main space post.

[00:11:52]Uh that would be amazing. And another thing if you have more questions to uh paste them below the main post or you can also check on the post by the flare desk account. We also have a list of questions that we're going to go through. Okay, going back now. Um look, I think there is another important thing to clarify in in relation to uh FIP 16 and the different stages and what is being shown displayed already on the data. I remember a couple of days ago when we launched this dashboard it seemed kind of small but then I think uh we clarified I don't know if we made this public that we were still not counting FL smart accounts I don't know if that has changed and the dashboard are updated but the bottom line is what should users be aware of right now in terms of collection of fees for fire.

[00:12:47]>> Yes. So collection of fees for fire comes from multiple dimensions. The first few things were the tag reservations for F assets. So this is the F assets version 1.3 where you can mint things in a bit nicer way when you can mean directly to tag where we removed the necessity to use a specific uh lot size when you only had to mint 100 or 110 now you can mint whatever. We also allow you to redeem a bit more and this upgrade of F assets also brought a different way of accounting for fees. So the first thing is minting fees from F assets go directly into fire but only if they go through this so-called direct minting. The rest of the mintings still go through agents and the agents get those fees. Um and why is this important for smart accounts? Well, the smart accounts we currently run specifically for Zaman and the Flare smart accounts web page and the integration with Descent, they still use the old agentbased system. But don't worry, we're upgrading this one and we're going to be releasing the update very soon to move all these fees directly to all the holders. So, that's the first thing flare um the F asset minting fees. The second thing is a tag reservation. So when you mint in F assets, you can reserve a tag and from there on every time you send XRP to this tag, you get FXRP to your address or to whatever address you've designated when registering or when transferring a tag.

[00:14:27]Why is that important? Well, it allows people to mint much easier and it also gives us this nice mint directly from exchange functionality and to prevent spamming on this and to prevent people from registering too many tags. We were thinking, okay, what shall we do to make sure that we have a nice way of balancing this and obviously economy is usually the right way to balance things.

[00:14:50]So, we just introduced a tech fee and this fee again goes directly into fire.

[00:14:55]So, those things are already in place.

[00:14:57]It's just that the integrations around them, specifically smart accounts, still use the old version. But don't worry and don't hold me um to this, but I think in 3 weeks we're going to see that all the fees from smart accounts are going to flow directly into the fire and are going to be properly accounted. The second thing um that's going to be huge, sorry, are the FDC fees. So the majority of the FDC fees that are increasing because they also serve a wider community, not just flare, are going to flow directly into the fire as well. And we're flipping that that switch on Monday.

[00:15:38]>> Awesome. So it's clear from this that we we should expect an an increase on uh anything if if someone is tracking uh the fire value approval that they will notice an increase like bottom line right um we we >> exactly yeah and we really wanted to be very transparent here by exposing all the ways how we earn things directly for fire as soon as possible so that people can observe this from zero up. We're not hiding anything here. We really just want to make sure that everything is collected. Everybody sees this and we're very transparent on how this is slowly acrewing and we're increasing this and we're doing everything to increase this as much as possible.

[00:16:26]>> Yeah. Yeah. No, I think um that's that's great because um as as we have shared multiple times, this is a major change in our in our tokconomics um directly to benefit holders uh which you know is always good news to hear. Um now next question perhaps related to ME and fire.

[00:16:49]Um I think people again might not be super clear on how ME works and how this is going to be utilized by fire and if we have any expected timelines. I know that we have certain procedures to go over. So I would like you to kind of clarify that as well because people think that you know sometimes they are not even aware that we are doing a bunch of changes and a bunch of audits behind the scenes. uh and that's needs that needs to happen. So I think that providing a little bit more context on that would help as well.

[00:17:25]>> Yes. So the the move to a full dedicated sequencer as we call it is going to be a long one because it's going to require a consensus change and everything. But even in the meantime, we're going to make sure to run a bunch of services, a bunch of solutions on the network that are beneficial to the network and crucial, but that can from time to time turn a profit. Specifically, one of them is a liquidator for a landing protocol.

[00:17:55]Liquidators are crucial things and the fire will run a few liquidators to liquidate landing protocols by a providing a much more secure and much more resilient landing protocol. But the liquidations are usually profitable and this profit is going to get transferred directly to fire. That's the first thing. So keeping sure that the network and the protocols deployed on it are safe. Second thing is whenever you make a trade on a specific deck, you usually imbalance the DEX pool by just a bit. If you make a larger trade and you have a larger slippage, you imbalance them by a bit more. And if this imbalance is too big, there is a way to close this imbalance to arbitrage the imbalance out by making sure that the prices on on network really reflect the prices in the real world. And in this and by doing this you do turn a bit of a profit. This is so-called um post trade arbitrage and also fire is going to be doing this post trade arbitrage to make sure that we again level the taxes and we'll turn a bit of profit and this is going back into fire and as this grows we're going to be acrewing much more of this much more utilities much more from um RWAS much from from more from FXRP FBTC and all the F assets we're bringing but those are just two specific examples.

[00:19:25]There's much more of it. There's, for example, I don't know, dedicating a certain slot for a specific very quick transactions. And every time you do this, you charge users that want to do it a bit more because a it's in their monetary interest to pull a transaction through faster, for example. But all this additional charge that you're making, you can deposit this into a certain account. And in the majority of the networks, this goes into arbitrage.

[00:19:53]This go go goes to people running bots.

[00:19:55]Um in our network in flare we really wanted to make sure that flare the fire will be capturing the huge majority of this and obviously where are we going to be putting this directly into the fire to follow the same general direction to follow the same strategy. FLR >> amazing and this uh made me wonder also about the FDC the flare data connector and the fees right from a builder's perspective um you know you're seeing this increase on on on the fees for the FTC which is quite crucial um how to deal with that and actually I have another follow-up question that perhaps is more interesting which is how do you see the evolution of the FDC as a protocol collecting fees because it seems that as we bring more use cases in which data plays a central role we perhaps are starting to see that again with K weather whatever um how do you see that evolution because it looks like it could be a potential like very good place to collect fees but also it has an impact on builders so how to deal with all of that >> yeah so um Initially FTSO, that was the first protocol we had, was fully funded by inflation alone and people could use it for free on flare and that's fine and we're going to keep FTSO3 and have to do something obviously we're funding some of Okay. So, it seems that we had a connection issue on the side of Phillip and seems like you're back.

[00:22:06]>> Yeah. Better.

[00:22:08]>> Yeah. Okay. So, you had to if Flare was the only if Flair network and the inflation was the only thing paying for FDC and FTSO, this would be at a huge disadvantage to Flair. So we can't keep inflation just to keep FTSO and FDC and FC alive.

[00:22:27]This is where fees come in. So if you want to use it and specifically if you want to use it on other networks, you'll have to contribute something to data providers that do the work for you and we require them to do such work. But fire will get the majority of those fees. And and I can say that for certain, we will make sure that if you are a big user of FDC on Flare, if you are contributing a lot to the Flare ecosystem in multiple ways, by transactions, by bringing users, by bringing other things on chain and you are using FDC to provide this, Fire will be authorized to use some of those flares acquired as a part of a bigger fee to give you a small discount. Why is that? Well, you're paying Flare to move the data providers, to keep the data providers alive, and to have the data providers do the work for you. But now with Fire, we're looking at the whole ecosystem holistically. So, we'll return some of these to you because you're bringing much more positive value everywhere else. So as a builder if you bring more stuff to chain if you bring transaction volume if you bring TVL if you bring something that where we can capture me we're definitely going to reward you by lowering the FDS FDC and the FC price for you because you bring so much good to the whole ecosystem. But if you use this on another network this is the cost because the thing has to be sustainable. Flare inflation cannot fund FDC somewhere else. It has to be sustainable for Ethereum for example or for base but on flare we have some leeway to make sure that you're net positive for the network.

[00:24:15]Love to hear this and I'm I I have a followup question regarding the role of uh the FCC in the in in all of this flare confidential compute. One key piece of course is the FTC. Uh but beyond that like how does that fit uh this whole uh FIP16 and and fire?

[00:24:37]>> Yeah. So FCC as a core again reuses the set of data providers and their signing policy to move messages between flare between the network and between the TE's and all those things have to be paid for and the majority of the fees the majority of the upkeep fees will be put into fire for specifically that if we see that the value you're creating is beneficial for the whole network. We will consider let's say decreasing your fire fee so to speak. But in general, we really want to make this self sustainable to make sure that we are not disadvantaging anyone that is taking FLR because somebody is using that solution.

[00:25:22]So we have to make sure that this is sustainable in the long term. But whenever you're doing this on flare, we can take a look at the whole application at the whole set that you're bringing to the table and to the network and then we can make the necessary adjustment. And the crucial part with the FCC is that they really can't function without the data providers and entities because they provide the crucial backbone. This is their signing policy.

[00:25:52]That's the crucial part and we have to keep this maintained and secure and safe.

[00:26:01]Perfect. That was super clear. Um I'm checking now the time and I'm checking some of the questions from the community.

[00:26:10]Um yeah, I think I'm going to give it one or two more questions from my side and then we can go over the questions from the community. Again, if you're listening to this and have questions, you can paste them below the main post or you can paste it below uh the last post of the Flare developers account in which we are asking you to actually ask questions. Uh anyway, uh let me check what what other thing we haven't uh discussed. Actually, this is a good that you think we should uh clarify.

[00:26:41]>> Um maybe a very quick call to action and what you can do to see it.

[00:26:48]So on Monday there's going to be a different way of calculating how your vote power looks like and this thing starts today in the evening. So 900 p.m.

[00:27:01]C. So that means that if you start staking from today to Monday, you're going to be acrewing much more rewards because of your Pchain partner. And we'll make sure to adjust the Flare portal to show you this change. So whenever you're going to go to flare portal now you're going to see that you've get gathered a certain amount of rewards from staking and delegation and there's going to be a clear distinction that this part comes from staking funds and this part part comes from delegation and I really urge you to take a look at how many flare you delegate on Cchain as WFLR versus how many FLR you stake on Pchain. compare those two numbers and also compare the reward numbers. So this is the definitely definitely the important thing you should take a look.

[00:27:51]So we'll make sure to help you see where the difference is and where the different difference lies.

[00:28:01]Yeah, I will definitely be doublecheing uh how am I assigning all of these because I have multiple wallets uh and multiple providers. So thanks for the call to action. Um on my end perhaps a final question would be related to fire its mandate and the involvement of the community.

[00:28:23]Um obviously we bought this it was a very successful boat and it's clear that the mandate is uh supply reduction at least from my understanding and and the way I see like the the the biggest value ad for having this entity uh and what is now uh the the procedure with this because I understand that there there must be a few people that are going to be elected uh how does that work and the community involved uh what can we uh in the beginning is when we constituted fire the crucial thing was who will be a monitoring this and who will be executing the crucial part of this and obviously the monitoring part falls on the community. So the community has the final say. The community has the way to vote fire out of office, fire executor out of office, so to speak, if it's not doing something that's good for the for the whole community, for the FL holders and so on. And there's definitely going to be a bunch of tools and even we will be providing a bunch of statistics like I said. So we want to keep the addresses transparent. We want to keep the decisions why something was done transparent and so on. And secondly, regarding who's going to be executing this in the short term. So who's going to be allocating funds? Um there was a very clear thinking uh when we were going into this and this was okay. So how do we select the correct entity, the correct person, the correct direction um without harming the holders? And it was very clear that we have to select somebody who pretty much only has flare and nothing else. And obviously the foundation in that case was the the correct initial beneficiary and the correct initial executor by saying look foundation's only point foundation's only direction is to make sure that the network operates and with fire and me capture and all the stuff around it that is aligned in exactly the correct direction. So for community, community has a way to voice their concerns. Community has a way to say we would like this differently. But in general, we will make sure that there is no way to screw this up. There is no way to make a bad decision because any organization, any committee doing this decision will have much more negative consequences by doing a bad decision than everybody else. So in that way fire is really kind of positioned in a way where the primary mandate supply reduction is the core thing to do but it can look at the whole thing like I said holistically. We can take a look at the DC fees and see that a specific application is generating a lot of general network traction which again comes directly reduces supply and directly provides NAV to capture and so on and then we can do some reallocations there and similarly with F assets we know that the main driving of the volume and the main driving of activity on flare are obviously F assets which is the thing that we're building and if an application is going to bring a lot activity from F assets, a lot of new TVL, a lot of value to capture, a lot of value to bring to FLR holders. We can make sure that F assets are positively impacting the same application, the same developers.

[00:31:55]>> Very good. Um I'm checking here questions from the community. um to move forward with this part. Let me share here an opinion uh that has uh you know value because I think uh XRP puppy has been with us for a while. Uh it says in my opinion the effectiveness track record of validator should be visible right on the flare portal not just percentage returns feels like a research project to pick a validator with the increased yield more transparency and less work to pick a quality provider will make the experience much more enjoyable and encourage participation.

[00:32:36]Not a question but seems like a good place for this.

[00:32:40]Yeah, we'll we'll consider adding more information to portal. So, we are in the process of redesigning portal. So, all the ideas that you have, what you might want to see there, what additional stats you might want to see or what's missing and you need when you select a new validator, when you select a new target are definitely um worthy of um voicing and we're definitely going to take a look at them. So, yeah, noted.

[00:33:07]Yeah, I think you know the portal the portal is going to have a central role in all of this, right? We we should clarify that that like I I would expect that at some point we're going to see more and more traffic towards the portal and of course that you know we we need to improve in how we're displaying the data and all of that. Um what are your thoughts around?

[00:33:27]>> Yes, so portal the crucial part. It's pretty much the it's pretty much the entry point to what you do on flare and whenever you do something the entry point to what you do on flare related to st and delegation and taking a look at your at your stuff.

[00:33:45]So we're going to make this a bit more intuitive specifically the C chain thing. We're going to make you observe the whole FL holdings in both P Cain points so we won't have to switch tabs and so on. And that's we're thinking about integrating some additional transfer as we're exploring new projects and new things to to add to flare. We'll definitely integrate them in portal.

[00:34:19]>> Sounds good. Um let me go over the next question uh by flare Africa. I think you already replied to this but at least we should perhaps go over the second part.

[00:34:28]So they're asking how do uh FIP 16 changes affect everyday FLR stakers and what should and I think this is the important part to repeat delegators and validators do before the new staking window.

[00:34:42]>> Um how do how do they affect you? I pretty much touched this before. So A the lower inflation also means lower rewards. um be much more is going to the to the staking part. What should you do?

[00:34:57]You should go to flare portal. You should go to the staking tab and you should stake instead of delegate. So unwrap some flare, move it to Pchain, convert it to Pchain flare and select a validator and stake to this validator. Importantly, as part of the hard work on Tuesday, we've increased the limit on the validator size. So up until now validators were limited to have up to 200 million FLR st to them provided they had enough selfbond. Now they can have up to 300 million which means that more can be staked to the same validators. So there is space for staking for sure and as we'll see the rewards increase for this we'll see validators opening new nodes.

[00:35:43]So definitely there's not going to be any any case where you will end up without a place to stay.

[00:35:53]>> Super clear. Uh we're we're going to make sure we we provide then uh some of these clips on socials so that everyone can you know can share that as well.

[00:36:05]Okay. Uh I think we are kind of all set at this stage with the main questions about uh FIP 16 and what's coming up next and the fire updates. Um I'm going to do let's let's have two more questions that are kind of outside of this but perhaps were clarifying since we have the community here on this lovely summer day. Uh, this guy annoying fate says, "I'm a broken record." I know, but any update at all on Firelight would be much appreciated. Looking forward to everything in this chat. So, I can already say that they should be the ones providing those updates, not us. And you should be asking that on their official channels first, right? Uh but that being said, Philip, is there anything uh you would like to add or clarify in regards to this?

[00:37:13]>> I see your mic.

[00:37:15]>> We're definitely moving in the correct direction with Firelight. Obviously, like you said, this is something that Firelight team has to answer. I can offer a thing for chat. Did we miss Phillip?

[00:37:51]Yeah, but I he I I believe he will be back in anytime soon.

[00:37:58]>> Yeah. Uh okay. Yeah, he he he's typing here internally. He was able to hear the question and he's reconnecting uh right now. Um in the meantime, Amy, is there any call to action or anything you would like to share about today's space?

[00:38:17]Um look uh the changes had been um quite a longterm planning and also quite a lots of details uh in it and um not like we like expect like users like an FL holders can understand the full scope uh in day one. So if you have any questions and feel like we can do better in explaining the technical details, do DM us you know where to find us and maybe you know um we can also create a recap of from this space uh so that you can actually uh read it again and ask Croc you know and see if you get the gist of it. So, my call to action is take some time uh read it and uh listen to this recording again and let us know where you still have questions about.

[00:39:19]>> Perfect. And in the meantime, it seems that we might be having Phillip back.

[00:39:25]He's requesting now to speak. Uh so, you probably should see a message there on on DMs.

[00:39:33]Yep, he is approved and I think he'll be on stage anytime.

[00:39:47]Okay. Uh in the meantime, just for context guys, uh what we have been doing in the space is clarifying a bunch of questions in in relation to FIP 16. I think everything related to staking uh was golden material personally and now the we're at the point in which we're asking questions that the community have asked and even unrelated or not directly related like the fire light one. Uh Philip is back.

[00:40:12]>> Yeah, I'm back. So yeah, obviously disconnected with this problematic question. Um no like you said so fire light this is something to ask the fire light team but what I can share from flare side is that their vault is fully compatible with flare smart accounts so we will be integrating fire light in flare smart accounts as a yield product as soon as they are available and I I can't put any dates it's going to be soon we're working on this it is um a much bigger bigger project and it involves a lot of stakeholders. But don't worry, you'll get it both on Flare and also through all the other distribution channels that we're building and the all the other distribution channels that do take the fee and bring it directly into fire.

[00:41:07]>> Sounds good. Uh let me see if I have here one final question.

[00:41:12]uh the rest seems to be directly related to price action. We are not going to go there. Uh but hopefully you know we are trying to acrew value from the entire uh blockchain activity towards FLR holders.

[00:41:28]That is the whole goal of FIP 16 like uh obviously we're trying our best here. Um okay so I think uh we can probably wrap it up. Um, Philip, is there anything else uh you would like to share? Uh, on my end, I I was just I just kept thinking after uh this conversation about where will likely come most of the fees occurring, right? Because this is kind of the game that we are playing as an as an ecosystem, right? the the more people we're able to attract into the network, the more activity that value now uh will flow through fire that will then flow to FLR holders one way or another, right? Uh but then thinking about the different sources and you know each one of us can have a different opinion on this I think flare smart account looks really promising. Um but I don't know about your thoughts on this.

[00:42:22]So short and medium-term for sure flare smart accounts and fset related fees. Um FDC fees are going to be a stable thing for for pretty much the whole time. But in the medium and long term the majority of the fees at least from our projections and at least from what we've seen on other networks the majority of the stuff going directly into the fire is going to come from the me capture. If you take a look at other networks for for example Ethereum proposer builder separation systems and so on you can see that this me is related to the majority of the fees that you can capture the majority of the value you can capture on the network and I think this is also crucial because it binds together the two most important things. It binds together the fact that a we want to approve value for the FLR holders and it directly ties it to the activity of the network which is the most important thing we want to achieve anyway. So medium long-term definitely MEV short-term F assets FBTC and smart accounts as an enabling layer on top of this and any other intermediary things we will find.

[00:43:46]>> Absolutely. And listen uh related to this uh I know that you probably have to drop now uh but just one final question because it made me wonder if people are understanding what makes Flair unique in regards to our positioning with this MEB capture uh in comparison to other blockchains. Uh what would you say is truly the unique angle here?

[00:44:12]Well, the main unique angle is that we can capture this holistically across the whole blockchain. That's the first thing as a blockchain. But secondly, we will make sure that we're capturing ME and we're controlling the ME in such a way that it's not negative to the ecosystem.

[00:44:32]And how do you do this? It's actually a tricky thing, but our Tbased Flare confidential compute will allow us to have algorithms that do exactly this.

[00:44:43]So, capture the fire, but also control that we're not doing something stupid.

[00:44:48]So, we're not going to frontr run users.

[00:44:50]We're not going to extract value from people that have misclicked on swaps with intense. We're going to make sure and we can make sure using the flare confidential compute that we're doing things that are all right. The community will obviously be checking us and I hope they're going to be very aggressive in this. But at the same time, we can also look at the whole network and not squeeze a single piece for the maximum profit, but extract and capture from all of the pieces without damaging the whole thing.

[00:45:26]>> Yeah. I think this is uh probably the key point that I want people to take home aside from everything we heard uh on in relation to 16 in general and staking and all that what to expect. Uh I think uh you know the way we're approaching this and trying to find balance and utilizing unique infrastructure to address this long-term problem which we know is going to take some time uh is pretty you know pretty special and I'm I'm I'm pretty hopeful about it. So, thank you so much for joining us today, Phillip. Uh, we have some wonderful materials to reshare and a call to action perhaps to the community if you can help us spread the word. Uh, we see some comments uh, you know, uh, that are clearly people that are not paying attention to what's going on here. And obviously, we're going to try harder and harder to be more effective in our communication and perhaps even more repetitive, but you guys can help us a lot on this. Now another thing that I need to remind you if you're a builder or an infrastructure provider do not miss the flare summer uh signal hackathon uh we have still around one month to build right and and and and you know provide something unique in terms of solutions uh and we are testing the FCC with this right uh I think that's also important and expect a little bit of of uh pain in terms of bugs and things like that like this is just normal stuff that happens uh when you're deploying something new, a new technology and developers are here to help us and we are here to provide the most assistant that we can, right? Uh it's going to be fun. Anyway, Philillip, thank you so much. Uh do you have any final words?

[00:47:07]>> Thank you. And let's see what the difference in the flare portal is going to look like when the next reward epoch with the different formula will come through.

[00:47:19]Oh yeah, that's going to be an exciting moment for sure. So stay tuned to that guys if you haven't start getting familiarized with the portal. I think it's going to be very uh crucial in the future. So thank you so much everyone.

[00:47:32]Have a nice rest of your day. I'll see you on the timeline. Bye-bye. What?