The Flow ecosystem will be backed by a new $725 million fund that will be used to invest in the development of a network of non-fungible tokens.
Flow (FLOW) is a layer 1 blockchain developed by Dapper Labs specifically for NFT. Dapper Labs also created the popular NBA Top Shot NFT series. Flow uses eco-friendly proof of stake (PoS) consensus algorithm.
The new fund is backed by 17 firms with experience backing other Web3 companies, including large investment firms a16z, Spartan Group and CoinFund. The funds will be used to entice developers to bring their work to Flow instead of rival Ethereum (Ethereum) despite high gas fees, it still dominates NFTs. Within the Flow ecosystem itself, these funds will support games, infrastructure, decentralized finance (Decentralized Finance), content and creators.
Today, we are announcing a $725 million Ecosystem Fund to accelerate the growth of the entire Flow ecosystem
This is the largest co-fund made for any blockchain, available to existing and future developers #onFlow
— Flow (@flow_blockchain) May 10, 2022
Projects that receive grants through the Ecosystem Fund will be backed by investments in FLOW tokens, as well as the Fund’s Web page Called “in-kind support”.
Flow is currently the third-largest blockchain by NFT sales, after Ethereum and Solana (Sol).According to NFT marketplace CryptoSlam, excluding May, Flow has averaged $50.3 million in monthly NFT sales throughout 2022 Tracker.
Host of NFT-focused podcast The First Mint LG Doucet tweet On Tuesday, he listed five new products that he believes should be funded. They include whitelisted apps that help users get mint whitelists, mobile apps, video education, wallet integration on Shopify, and non-cartoon, animal, and athlete art. He added that Flow needs “real innovation, not just a copy of the ETH project’s roadmap.”
$725 million $flow ecosystem
Products we need to build:
And actual innovation, not just copying the ETH project’s roadmap
— LG DOUCET (@LgDoucet) May 10, 2022
Although Flow is run by Dapper Labs, which has produced some of the largest NFT products over the past two years, its NFT sales still lag the larger layer-1 ecosystem. This may be due to weaker network effects and a smaller decentralized application ecosystem (Decentralized application) run on it. The new Ecosystem Fund aims to address this shortcoming.
Dapper Labs’ other NFT products include CryptoKitties (one of the first NFT games), UFC Strike, NFL All Day, and Cheez Wizards.
With a market cap of $1.4 billion, FLOW has risen 20% to $4.01 in the past 24 hours, according to CoinGecko data.