The Flow ecosystem will strengthen its support from a new $725 million fund that will be used to invest in the growth of the non-fungible token network.
Flow (FLOW) is a Layer 1 blockchain developed by Dapper Labs and built specifically for NFTs. Dapper Labs also created the popular NBA Top Shot NFT collection. Flow uses an eco-friendly proof-of-stake (PoS) consensus algorithm.
The new fund was backed by 17 companies with experience supporting other Web3 companies, including large investment firms a16z, Spartan Group and CoinFund. The funds will be used to force developers to bring their work into Flow, unlike its rival Ethereum (ETH), which still dominates NFTs despite high gas rates. Within the Flow ecosystem itself, funds support games, infrastructure, decentralized finance (DeFi), content and creators.
Today we are announcing a $725 million Ecosystem Fund to accelerate growth across the entire Flow ecosystem.
This is the largest joint fund created for all blockchains available to both existing and future developers. #flow
— flow (@flow_blockchain) May 10, 2022
Projects subsidized through the Ecosystem Fund are supported by FLOW token investment, web page It’s called ‘in-kind support’.
Flow is currently the third largest blockchain by NFT sales, behind Ethereum and Solana (SOL). Excluding May 2022, Flow averaged $50.3 million in monthly NFT sales, according to NFT market CryptoSlam. tracker.
Hosted the NFT-focused podcast The First Mint LG Doucet Tweet On Tuesday, he released a list of five new products he thinks should be supported through funding. These include mint, mobile apps, video training, wallet integrations from Shopify, and whitelist apps that help users whitelist for non-athletic art, cartoons, animals, and more. He added that Flow needs “real innovation, not just a roadmap to copy the ETH project.”
725 million dollars $flow ecosystem
Products required to craft:
Roadmap to copy ETH project as well as actual INNOVATION
— LG Doucet (@LgDoucet) May 10, 2022
Flow operates from Dapper Labs, which has produced the largest NFT products in the past two years, but NFT sales still lag behind the larger Layer 1 ecosystem. This may be due to weak network effects and a smaller ecosystem of decentralized apps (Dapps) running on it. The new ecosystem fund aims to address these shortcomings.
Other Dapper Labs NFT products include CryptoKitties, UFC Strike, NFL All Day, and Cheeze Wizards, one of the first NFT games.
Relevant: Other NFTs fall below the mint price, while cheaper ETH boosts sales.
FLOW has a market cap of $1.4 billion, up 20% over the last 24 hours, to $4.01, according to CoinGecko. data.