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 designed for NFTs. Dapper Labs also created the popular NBA Top Shot NFT series. Flow uses an environmentally 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 (ETH), which still dominates NFTs despite high gas fees. Within the Flow ecosystem itself, the funds will support games, infrastructure, decentralized finance (DeFi), content and creators.
Today, we are announcing a $725 million Ecosystem Fund to accelerate growth across the Flow ecosystem
This is the largest syndicate fund made for any blockchain, available to current and future developers #onFlow
Meet the Flow Ecosystem Fund: https://t.co/8Y8qaLvccz pic.twitter.com/VBKbnZdQEQ
— Flow (@flow_blockchain) May 10, 2022
Projects that receive grants through the Ecosystem Fund will be backed by an investment in FLOW tokens, which the fund’s webpage calls “in-kind support.”
Flow is currently the third-largest blockchain by NFT sales after Ethereum and Solana (SOL). Excluding May, Flow has averaged $50.3 million in monthly NFT sales throughout 2022, according to NFT market tracker CryptoSlam.
The host of NFT-focused podcast The First Mint LG Doucet tweeted on Tuesday a list of five new products 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 into the $Flow ecosystem
Products we need to build:
– WL Apps like @PREMINT_NFT – Mobile App by @emerald_dao – Video Education on @Flowverse_ – Wallet Integration on @Shopify – Non-Cartoon Animal/Athlete PFP
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 ecosystem of decentralized applications (Dapps) running 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.
Related: Otherside NFTs Drop Below Mint Prices While Sales of Cheaper ETH Grow
With a market cap of $1.4 billion, according to CoinGecko, FLOW has risen 20% to $4.01 in the past 24 hours.