Top Shot creator unveils $725M fund to support Flow ecosystem

Flow’s ecosystem is expected to receive a boost in support from a new $ 725 million fund that will be used to invest in the growth of the inoperable token network.

Flow (FLOW) is a Layer 1 blockchain developed by Dapper Labs and designed for NFTs. Dapper Labs has also created the popular NBA Top Shot NFT collection. Flow uses an eco-friendly consensus algorithm (PoS).

The new fund was supported by 17 companies that have experience in backing up other Web3 companies, including large investment companies a16z, Spartan Group and CoinFund. The funds will be used to attract developers to bring their work to Flow as opposed to competitor Ethereum (ETH) which still controls NFTs despite high gas fees. As part of Flow’s own ecosystem, the funds will provide support for gaming, infrastructure, distributed finance (DeFi), content and creators.

Projects awarded to grants through the Ecological Fund will be supported by investments in FLOW tokens, and what the fund’s website calls “eye support.”

Flow is currently the third largest blockchain in terms of NFT sales volume behind Ethereum and Solana (SOL). Excluding May, throughout 2022, Flow averaged $ 50.3 million in monthly NFT sales according to CryptoSlam, following the NFT market.

The host of the podcast focuses on NFT The First Mint LG Doucet Tweeted on Twitter On Tuesday a list of five new products that he believes should be supported through the funds. They include a permit list app to help users access the permit list for mint, a mobile app, video education, wallet integration in Shopify and non-cartoon art, animals and athletes. He added that Flow needs “real innovation, not just mapping roads that copy ETH projects.”

Although Flow is powered by Dapper Labs, which has produced some of the largest NFT products in the past two years, its NFT sales are still lagging behind larger Tier 1 ecosystems. This may be due to weaker network effects and a smaller ecosystem of distributed applications (Dapps) running on it. The new ecological fund aims to address this shortcoming.

Other Dapper Labs NFT products include CryptoKitties, one of the first NFT games, UFC Strike, NFL All Day and Cheeze Wizards.

Related: Other NFTs fall below the price of mint while cheaper ETH sees an increase in sales volume

FLOW has a market capitalization of $ 1.4 billion and has risen 20% in the last 24 hours to $ 4.01 according to CoinGecko data.