Flare (FLR), a layer-1 blockchain for data, has secured a round of funding from its early backers aimed at reducing immediate liquidity while boosting investment into the Flare ecosystem, according to a press release shared with Finbold on February 23.
The early investors in Flare, such as Kenetic and Aves Lair, have reaffirmed their confidence in the project by agreeing to extend token vesting periods, imposing limits on token sales, and helping develop various aspects of the Flare ecosystem.
Flare funding details
The funding signals a prolonged commitment from Flare’s already long-standing supporters and a desire to safeguard the community, foster future growth, and remove some pressures from the token’s ecosystem.
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Hugo Philion, Co-founder of Flare, welcomed the continued support from early backers, stating:
“I am delighted that Flare’s early backers have demonstrated a strong recommitment of support for Flare’s growing ecosystem. Their further investment into the Flare ecosystem will help the network grow and thrive by providing liquidity to DeFi and investment for projects building on Flare. 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.”
— Hugo Philion, Co-founder of Flare
The extension of token vesting means backers will continue to receive the same amount of FLR as initially agreed upon, but for the period now extended from 2024 to Q1 2026, which should encourage sustained participation in the network over the long term.
The FLR selling limit means early investors have committed to restricting FLR sales to no more than 0.5% of daily volume, seeking to provide clarity and stability in the market by combating volatility.
Moreover, 50% of the proceeds generated by FLR sales until January 2026 will be reinvested in the FLR ecosystem, most notably decentralized finance (DeFi), Total Value Locked (TVL), and liquidity provision.
Lastly, it’s important to emphasize that the new agreement stands apart from Flare’s earlier announcement regarding the burn of 2.1 billion FLR tokens in October 2023.
What’s in it for the Flare investors?
Under the new terms, early investors are set to receive their originally agreed-upon cut of 2% of Flare token supply, albeit with a reduction in upfront distribution and a longer vesting period.
Jehan Chu, the Founder of Kenetic, expressed his confidence in Flare’s vision, saying:
“We wholeheartedly believe in Flare’s vision for securing data in the age of Web3 and the potential for FAssets to empower non-smart contract tokens. With this re-structuring and agreement to heavily invest in Flare’s economic and financial infrastructure growth, we are confident that our early investment will grow exponentially beyond our initial expectations.”
— Jehan Chu, the Founder of Kenetic
The reinvestment of proceeds from token sales will bolster Flare’s lending protocols, decentralized exchanges (DEX), automated market maker protocols, synthetic assets, among others.
