FLR experiences 19% surge as early investor commits to reinvesting in ecosystem
Flare, the developers of the ecosystem, have recently announced a series of measures that have garnered support from early investors, such as Kenetic and Aves Lair. These investors have demonstrated their commitment to the blockchain by implementing various strategies.
As part of the new agreement, these investors have decided to extend the token vesting period from its original endpoint in 2024 to Q1, 2026. Additionally, they have agreed to limit their token sales to a maximum of 0.5% of the 30-day daily average volume. This move aims to reduce excessive FLR liquidity and minimize market volatility.
Furthermore, in an effort to support sustained ecosystem growth and incentivize builders, early backers have committed to reinvesting at least 50% of the proceeds from all token sales over the next two years into Flare ecosystem projects. This reinvestment amounts to an estimated $35 million based on the current market valuation.
Despite these updates, early investors will still receive 2% of the token supply, albeit with a 68% reduction in upfront distribution. The extended vesting period showcases the alignment between founders and investors, emphasizing their shared vision for Flare’s transformative potential.
Flare, launched in 2020, is a blockchain platform that enables smart contracts and interoperability with other blockchains, particularly the XRP Ledger. Following the news, Flare’s FLR token experienced a significant increase of nearly 19%, and it is currently trading at $0.046, according to data from CoinGecko.
