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

The Flow ecosystem is said to be supported by 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 specifically designed for NFTs. Dapper Labs also created the popular NBA Top Shot NFT collection. Flow uses an environmentally friendly PoS (Proof of Stake) consensus algorithm.

The new fund was backed by 17 firms experienced in backing other Web3 companies, including major investment firms a16z, Spartan Group and CoinFund. The funds will be used to get developers to get their work flow, in contrast to competitor Ethereum (ETH), which still dominates NFTs despite high gas fees. Within the Flow ecosystem itself, funds will support games, infrastructure, decentralized finance (DeFi), content and developers.

Projects receiving grants through the Ecosystem Fund will be backed by FLOW token investments and what the fund’s website calls “in-kind support.”

Flow is currently the third largest blockchain by NFT sales volume behind Ethereum and Solana (SOL). Not counting May, Flow has averaged $50.3 million in monthly NFT sales in 2022, according to CryptoSlam, an NFT market tracker.

Host of the NFT focused podcast The First Mint LG Doucet tweeted on Tuesday a list of five new products that he thinks should be supported by the funds. These include a whitelist app to whitelist users for a mint, a mobile app, video training, wallet integration on Shopify, and non-cartoon, animal, and athlete art. He added that Flow “needs actual INNOVATION, not just roadmaps that copy ETH projects”.

Although Flow is operated by Dapper Labs, which has made some of the largest NFT products over the past two years, its NFT sales still lag behind larger Layer 1 ecosystems. This may be due to weaker network effects and a smaller ecosystem of decentralized apps (dapps) running on it. The new ecosystem fund aims to remedy this shortcoming.

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

Related: On the other hand, NFTs are falling below the mint price while cheaper ETH is seeing an increase in sales volume

FLOW has a market cap of $1.4 billion and is up 20% in the past 24 hours to $4.01, according to CoinGecko data.