[PRESS RELEASE – Dubai, United Arab Emirates, February 23rd, 2024]
Flare’s earliest investors, including Hong Kong and US-based Kenetic, New York-based Aves Lair, and others, have doubled down on the leading Blockchain for Data by extending token vesting, limiting token sales, and committing significant new capital to investing across the Flare ecosystem. This landmark agreement between investors and Flare leadership signals a renewed partnership and extended commitment by Flare’s long-term supporters designed to protect the Flare community, invest in future development, and limit pressure on the token ecosystem.
Kenetic Founder Jehan Chu said, “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 invest heavily in Flare’s economic and financial infrastructure growth, we are confident that our early investment will grow exponentially beyond our initial expectations.”
Flare Co-founder Hugo Philion added, “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.”
Specifically, Flare’s early investor cohort have signed the following binding agreement:
- Extended Token Vesting: Backers will receive the same amount of FLR as previously. That is 2,107,867,284.31 FLR, with 813,870,745.01 FLR distributed in February 2024. Early investors voluntarily extended distribution from 2024 to Q1 2026, easing market pressure and encouraging long-term network participation and alignment.
- FLR Selling Limit: Early investors committed to binding sales restrictions of FLR sales to no more than 0.5% daily volume (based on historical 30-day volume), providing clarity and reducing market volatility.
- FLR Ecosystem Reinvestment: 50% of all investors’ proceeds from FLR sold through January 2026 will be reinvested in the Flare ecosystem across applications, defi,TVL and liquidity-provision, bolstering the most critical value accrual mechanisms. At the current market valuation, this investment into Flare’s ecosystem would be worth $35M to Flare ecosystem projects.
- Accountability: The investor group agreed to full programmatic monitoring and accountability for adherence to the mission and commitments.
Early investors will receive their originally agreed total of 2% of Flare token supply. These new terms represent a 68% reduction in upfront distribution, as well as a material lengthening of vesting, and a demonstration to the community of builders and token holders how founders can align with investors to responsibly support a game-changing vision for the Flare network.
The reinvestment of 50% of the proceeds of any token sales will support a wide variety of Flare ecosystem projects including:
- Lending protocols
- Perpetuals decentralized exchanges
- Decentralized exchanges
- Automated market maker protocols
- Synthetic assets
- Cross-chain bridges
- Minting native stablecoins
This new agreement is separate to Flare’s negotiated burn of 2.1B FLR announced in October 2023.
Learn more on the Flare website: https://flare.network/backer-agreement-tokenomics/
About Flare
Flare is the blockchain for data: an EVM smart contract platform specifically designed for the intensive data demands of the next generation of blockchain applications, including Machine Learning/AI, RWA tokenization, gaming and social.
With decentralized oracles enshrined in the network, Flare is the only smart contract platform optimized for decentralized data acquisition – price & time series data, blockchain event & state data, and web2 API data.
By giving developers trustless access to the broadest range of data and data proofs at scale and for minimal cost, Flare expands the utility of blockchain and supports the development of new and improved use cases.
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Contact
Nick Campion
nick@flare.network
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