FLR surges 19% on early investor pledge to reinvest into ecosystem

Flare’s early investors have committed to extended vesting, limited token sales, and reinvestment of 50% of proceeds, driving FLR price up by 19%.

In a blog update to Flare‘s tokenomics, the developers of the ecosystem have announced they had secured support from early investors like Kenetic and Aves Lair, who agreed to reinforce their commitment to the blockchain by implementing various strategies.

Under the new agreement, these investors have decided to extend the token vesting period from its initial endpoint in 2024 to Q1, 2026. They have also agreed to limit their token sales to a maximum of 0.5% of the 30-day daily average volume, aiming to reduce excess FLR liquidity and minimize market volatility.

Moreover, in a bid to “support sustained ecosystem growth and provide additional incentives for builders,” early backers have also committed to reinvesting at least 50% of the proceeds from all token sales over the next two years back into Flare ecosystem projects, amounting to an estimated $35 million at the current market valuation.

Flare confirmed that despite the update, early investors will still receive 2% of token supply but with a 68% reduction in upfront distribution, alongside an extended vesting period, showcasing alignment between founders and investors for Flare’s transformative vision.

Launched in 2020, Flare is a new blockchain platform designed to enable smart contracts and interoperability with other blockchains, particularly the XRP Ledger. After the news broke, Flare’s FLR token jumped by nearly 19% and as of press time is trading at $0.046, according to data from CoinGecko.