Flare’s initial investors, such as Kenetic from Hong Kong and Aves Lair from New York, have reinforced their commitment to the leading Blockchain for Data. They have agreed to extend token vesting, restrict token sales, and inject substantial new capital into the Flare ecosystem.
This significant agreement signifies a strengthened partnership between investors and Flare’s leadership, aiming to safeguard the community, foster future development, and alleviate pressures on the token ecosystem.
The early investors in Flare have committed to a binding agreement with several key provisions. They will receive their allocated FLR tokens over a longer period, stretching to Q1 2026 instead of the original 2024 timeframe.
Additionally, Flare has agreed to limit daily FLR sales to 0.5% of the historical 30-day volume, aiming to stabilize the market. Half of the proceeds from token sales until January 2026 will be reinvested in Flare’s ecosystem, defi, TVL, and liquidity provision, enhancing its various projects. At the current market valuation, this investment in Flare’s ecosystem would be worth $35 million for Flare ecosystem projects.
Early investors will now receive their initially agreed-upon total of 2% of Flare token supply, marking a 68% reduction in upfront distribution. This adjustment also extends vesting periods significantly, showcasing founders’ alignment with investors to responsibly advance Flare Network’s transformative vision.
50% of token sale proceeds will be reinvested in various Flare ecosystem projects, including lending and decentralized exchange protocols, synthetic assets, cross-chain bridges, and native stablecoin minting. Notably, this agreement stands distinct from Flare’s previously announced burn of 2.1 billion FLR in October 2023.
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