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.”

The post Flare (FLR) Price Jumps 7% Upon Decision to Reinvest 50% of Token Sales appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am