Flare, Leading Data Blockchain Secures Round of Early Backers, Reduces Liquidity, Increases Investment in Ecosystem

Flare, Leading Data Blockchain Secures Round of Early Backers, Reduces Liquidity, Increases Investment in Ecosystem

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 expanding token offerings, capping token sales and committing significant new capital to invest in Flare ecosystem.

This landmark agreement between investors and Flare management signals a renewed partnership and expanded commitment from long-term Flare 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 data protection in the Web3 era and FAssets’ potential to enable non-smart contract tokens. With this restructuring and an agreement to invest heavily in the growth of Flare’s economic and financial infrastructure, we are confident that our early investment will grow exponentially beyond our initial expectations.”

Flare co-founder Hugo Philion added: “I’m delighted that early Flare backers have demonstrated a strong re-commitment to support the growing Flare ecosystem. Their further investment in the Flare ecosystem will help the network grow and thrive by providing DeFi liquidity and investment for projects built on top of Flare. Liquidity arrangements are excellent for a growing ecosystem. At this latest anticipated liquidity event, I am very grateful to our early backers for continuing to be Flare’s biggest supporters and codifying a supportive, objective relationship aligned and beneficial to Flare’s growth.”

Specifically, Flare’s cohort of early investors signed the following binding agreement:

  • Advanced token provisioning: Backers will receive the same amount of FLR as before. This is 2,107,867,284.31 FLR, with 813,870,745.01 FLR distributed in February 2024. Early investors voluntarily extended the distribution from 2024 to Q1 2026, easing market pressure and encouraging long-term network participation and alignment.
  • FLR Sale Limit: Early investors committed to tying FLR sales limits to no more than 0.5% of daily volume (based on historical 30-day volume), providing clarity and reducing market volatility.
  • FLR Ecosystem Reinvestment: 50% of all investor proceeds from FLRs sold through January 2026 will be reinvested in the Flare ecosystem in apps, defi, TVL and liquidity provision, strengthening the most critical mechanisms for accumulating value. At the current market valuation, this investment in the Flare ecosystem would be worth $35 million in Flare ecosystem projects.
  • Responsibility: The investor group agreed to full programmatic monitoring and accountability for meeting the mission and commitments.

Early investors will receive their initially negotiated total of 2% of the supply of Flare tokens. These new terms represent a 68% reduction in the pre-allocation, as well as a significant extension of acquisition and a demonstration to the community of builders and token holders of how founders can align with investors to responsibly support a game-changing vision for the Flare network.

Reinvesting 50% of the proceeds from all token sales will support a wide variety of Flare ecosystem projects, including:

  • Credit protocols
  • Permanent decentralized exchanges
  • Decentralized exchanges
  • Automated Market Maker Protocols
  • Synthetic assets
  • Transverse chain bridges
  • Minting local stablecoins

This new agreement is separate from Flare’s agreed 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 a data blockchain: EVM smart contract platform specifically designed for the data-intensive requirements of next-generation blockchain applications, including machine learning/AI, RWA tokenization, gaming, and social networking.

With decentralized oracles included in the network, Flare is the only smart contract platform optimized for decentralized data collection – price and timeline data, blockchain event and state data, and web2 API data.

By providing developers with trustless access to the widest range of data and evidence of data at scale and at minimal cost, Flare extends the utility of blockchain and supports the development of new and improved use cases.

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Contact

Nick Campion
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