Quick take:
- The early investors have agreed to cap token sales at 0.5% of the daily supply.
- They also committed to reinvesting 50% of any token sales back into the Flare ecosystem.
- Early investors extended token distribution from 2024 to the first quarter of 2026.
Flare has closed a $35 million private funding round from Kinetic, Aves Lair and others. The EVM-based layer-1 network said the fundraising allows it to reduce the liquidity of the $FLR token while also increasing ecosystem investment.
According to the announcement, early investors in Flare Network have agreed to cap the token sales at 0.5% of the daily supply. They also committed to reinvesting 50% of any token sales back into the Flare ecosystem and extended the token distribution from 2024 to the first quarter of 2026.
Commenting on the announcement, Flare co-founder Hugo Philion lauded the investors’ liquidity decision hailing it as 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,” Philion said.
This announcement comes on the heels of Flare’s other liquidity decision in October 2023, which saw the company commit to burning 66 million tokens per month until January 2026.
Flare describes itself as a layer-1 network for data that gives blockchain developers access to high-integrity data from other chains and the traditional internet (web2).
Developers can use Flare’s decentralised data acquisition protocols to expand the reach of their project to multiple ecosystems. The company leverages EVM-based smart contracts to achieve scalability, which has seen it attract applications like decentralised finance (DeFi), blockchain gaming, and non-fungible tokens (NFTs).
This fundraising brings the total raised by Flare to $46.3 million, following an $11.3 million venture round led by Kinetic, which it announced in June 2021.
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