Flare (FLR) Price Jumps 7% Upon Decision to Reinvest 50% of Token Sales

Bhushan Akolkar
February 24, 2024
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Flare Open Up To 50,000 DApps With LayerZero V2 Integration

Highlights

  • FLR price reacts positively to Flare's decision of 50% reinvestment, which is approx $35 million.
  • Flare investors have agreed to decrease surplus liquidity of FLR tokens.
  • Flare investors also delayed the token vesting period limiting token sales to a maximum of 0.5%.

FLR, the native cryptocurrency of the EVM-based Layer-1 Flare Network, is up by 7% in the last 24 hours with trading volumes up by 64% to $88 million. The Flare price surge comes as the network announces some key updates to the FLR tokenomics.

Flare to Reinvest 50% of FLR Token Sales

Flare Network’s new agreement involves its initial investors reinvesting in the network’s long-term growth. This groundbreaking initiative also includes extending token vesting periods, capping sales, and committing to reinvest 50% of any token sale proceeds into Flare ecosystem projects.

At present market valuation levels, this potential reinvestment amounts to approximately $35 million. This underscores their commitment to nurturing the ecosystem’s growth and development.

The reinvestment of 50% of token sale proceeds will bolster various Flare ecosystem projects going ahead. This includes the development of lending protocols, decentralized exchanges, advancements to automated market maker protocols, implementation of cross-chain bridges, as well as the launch of native stablecoins.

Measures to Reduce FLR Liquidity

The early backers of the Flare Network have also decided to initiate measures to enhance the ecosystem’s stability and foster long-term growth. They have opted to decrease the surplus liquidity of FLR tokens, bolster capital inflows into Flare’s decentralized finance (DeFi) protocols, and stimulate fresh investments in Flare ecosystem initiatives. Earlier this month, an announcement also noted that XRP will integrate with FLR through the FXRP asset.

In October 2023, Flare introduced an additional liquidity measure, declaring its intention to burn 66 million tokens monthly until January 2026, equivalent to 2% of the token’s overall supply. Original early investors will still obtain their initially agreed-upon 2% allocation of Flare token supply; nevertheless, these revised conditions denote a 68% decrease in the upfront issuance.

These backers have voluntarily extended their token vesting period from 2024 to Q1 2026 and have agreed to restrict their token sales to a maximum of 0.5% of the 30-day average trading volume. Flare co-founder Hugo Philion said:

“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.”

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.