Flow, the blockchain recognized for non-fungible tokens (NFT) with NBA Top Shot, will create a fund of $ 725 million, recently announced Dapper Labs, the creator of the network. This fund is the largest joint commitment made to a blockchain ecosystem. It will support current and future developers through investments, Flow token grants and in-kind assistance.
What is the Flow Blockchain?
Flow is a first-layer blockchain that powers non-fungible token (NFT) applications, including games, applications and digital assets, including the most well-known NBA Top Shot. The goal is to support many transactions per second while minimizing environmental costs, Ethereum (ETH) is no longer sufficient. Today, 7,500 developers are contributing to develop the Flow environment.
The network is based on a unique multi-role architecture and designed to evolve without partitioning. This allows for massive speed improvements while maintaining a developer-friendly environment and “ ACID-compliant ». In the field of computer science, ACID properties represent atomicity, consistency, isolation and durability. This process ensures that a transaction is executed reliably.
Flow’s cryptocurrency allows developers to create businesses that combine cryptocurrency and cryptography. Applications created using the Flow blockchain make it possible to keep control over user data. In addition, it creates new types of digital assets that can be traded on open markets and accessible anywhere in the world. It makes it possible to build open economies belonging to the community. An interesting point is that it can be assembled like Lego blocks to power applications.
Details on the $725 million Flow Ecosystem Fund
The new Flow fund is called the Flow Ecosystem Fund. At $725 million, it is the largest joint venture ever created. The goal is to expand the blockchain ecosystem. The fund is supported by investors holding significant stakes in the network’s native token, FLOW, as well as equity in Dapper Labs itself. They include Andreessen Horowitz (a16z), Coatue, Union Square Ventures, Greenfield One, Liberty City Ventures and CoinFund, among others.
The focus is on creating more distributed and equitable Web3 opportunities for developers around the world. Participants in this fund will focus on supporting games, infrastructure, decentralized finance, content and creators. The resources will contribute to product development and scaling, team expansion, user acquisition as well as general operating expenses.
In addition to financial support, the developers of the Flow ecosystem will be able to leverage their expertise through information events, office hours, accelerators and incubators, subsidized office spaces and similar initiatives.
For example, the investors will provide offices for the Flow teams in cities such as Berlin and in Asia. Liberty City Ventures will offer two scholarships for students to work on Flow-related projects. In addition, Mirana Ventures will bring strategic collaboration opportunities for Flow projects in collaboration with Bybit and BitDAO.
With global partners including the NBA, NFL, UFC and Dr. Seuss, unicorn developers like Animoca and PlayCo, and emerging projects such as Genies, Fancraze and Cryptoys, Flow has seen its daily transactions triple since September 2021.
The fund will cover Asia, Europe and North America, depending on the investors involved. Some have experience with accelerators or decentralized autonomous organizations (DAO).
Will the Flow Ecosystem Fund grow?
The Flow blockchain is known for the speed of its transactions and its low costs. Most of its traffic comes from Dapper’s NFT platform, NBA Top Shot, NFL ALL DAY and UFC Strike. The fund is looking to go beyond Dapper’s products. It seeks to attract developers to the blockchain at a time when Ethereum alternatives remain in competition for their share of NFTs.
Mikhael Naayem predicts the evolution of space towards a scenario “ the winner takes the most ». The best technology is likely to attract the lion’s share of users. NBA Top Shot volumes have, for the most part, decreased month by month since the peaks of last spring, although usage on the platform continues to grow.
Flow versus other blockchains
As for Flow’s competition with other blockchains, Naayem said Flow’s transactions have reached record levels in terms of daily transactions. It is also obvious that there are many developers who create next-generation Web3 applications. In addition, avatar companies like Engineering are on the rise.
According to Naayem, the evolution is going in the right direction and the future is rather promising. He recognizes that some ecosystems have developed faster than others.
Finally, the Flow blockchain ecosystem focuses on the important points. The goal is to provide their developers and creators with the best support system. With various companies supporting this project, the $725 million Flow Fund seems to be on the right path.
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