Flare, the blockchain ecosystem, witnessed a significant surge in its FLR token price by 19% following an announcement that early investors pledged to reinvest into the ecosystem.
In a recent blog update detailing Flare’s tokenomics, developers revealed that key investors, including Kenetic and Aves Lair, have reaffirmed their dedication to the blockchain. These investors have agreed to implement several strategies aimed at strengthening the ecosystem.
As part of the new agreement, early investors have opted to extend the token vesting period from its original endpoint in 2024 to the first quarter of 2026. Additionally, they have committed to limiting token sales to a maximum of 0.5% of the 30-day daily average volume. This measure aims to reduce excess FLR liquidity and minimize market volatility.
Furthermore, to foster sustained ecosystem growth and incentivize builders, early backers have pledged to reinvest at least 50% of the proceeds from all token sales over the next two years back into Flare ecosystem projects. This commitment amounts to an estimated $35 million based on the current market valuation.
Despite these adjustments, early investors will still receive 2% of the token supply. However, there will be a 68% reduction in upfront distribution, coupled with an extended vesting period. This move underscores the alignment between founders and investors in realizing Flare’s transformative vision.
Flare, launched in 2020, aims to facilitate smart contracts and interoperability with other blockchains, particularly the XRP Ledger. Following the announcement, Flare’s FLR token experienced a notable surge, reaching $0.046 at the time of reporting, according to data from CoinGecko.
In related news, Flare recently onboarded Google Cloud as its infrastructure provider, further solidifying its position in the blockchain space.
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