News

Flare Secures Round From Early Backers, Reducing Liquidity, Increasing Ecosystem Investment

Flare Secures Round From Early Backers, Reducing Liquidity, Increasing Ecosystem Investment

The leading Blockchain for Data, Flare, announced it has secured a $35M investment into its ecosystem following a significant investment round from its early backers.

This infusion of capital from Flare’s early investors, which include renowned names such as Kenetic and Aves Lair, not only reduces immediate liquidity but also amplifies investment into the Flare ecosystem, positioning the network for sustained development and innovation.

The agreement between Flare and its earliest investors underscores a shared vision to safeguard the Flare community while fostering long-term growth. This has seen early investors agree to extend the vesting period of their tokens until Q1 2026. Additionally, a cap on daily token sales has been imposed, limiting it to 0.5% of the historical 30-day volume to ensure stability and reduce market volatility.

A notable aspect of the agreement is the commitment to reinvest 50% of the proceeds from token sales into the Flare ecosystem, bolstering critical value accrual mechanisms such as applications, DeFi protocols, total value locked (TVL), and liquidity provision. This strategic reinvestment, estimated at $35 million, underscores the investors’ dedication to supporting the growth and development of the Flare network.

Jehan Chu, Founder of Kenetic, expressed unwavering confidence in Flare’s mission to revolutionize data security in the Web3 era, citing the potential of FAssets to empower non-smart contract tokens. With a renewed commitment to invest in Flare’s economic and financial infrastructure, early backers are poised to witness exponential growth beyond initial projections.

Hugo Philion, Co-founder of Flare, lauded the steadfast support of early investors, expressing his delights on this new milestone, saying, “… Agreements over liquidity are excellent for a growing ecosystem. At this final anticipated liquidity event, I am very grateful to our early backers, for continuing to be Flare’s biggest proponents and codifying a supportive, objective relationship aligned and beneficial to Flare’s growth.” 

Per the announcement, the reinvestment of proceeds from token sales will contribute to a diverse array of Flare ecosystem projects, including lending protocols, decentralized exchanges, synthetic assets, and cross-chain bridges, among others. This capital injection will accelerate innovation and adoption within the Flare ecosystem, further enhancing its utility and value proposition.

Notably, this agreement is distinct from Flare’s previous token burn announced in October 2023, emphasizing the platform’s proactive approach to optimizing tokenomics and fostering sustainable growth.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Popular

InstaCoin.News covers Fintech, Blockchain and Bitcoin bringing you the latest news and analyses on the future of money.

Copyright © InstaCoinNews

To Top