Flare Network and Lena Instruments launch new crowdfunding mechanism

The mechanism allows investors to allocate a portion of the rewards they earned into funding startups.

Interoperability-focused blockchain Flare Network has partnered with software infrastructure firm Lena Instruments to implement a crowdfunding mechanism that lowers the risks associated with startup investing.

Lena Instruments announced what it called a “CloudFunding” launchpad that lets Flare investors allocate a percentage of the rewards that they earned into investments to new crypto startups without moving their initial investments.

Apart from providing a low-risk investing solution for its contributors, the platform also aims to help projects that have launched on the platform have regular cash flows during the reward distribution periods.

Hugo Philion, the CEO of Flare Network, believes that the new mechanism is a good way for developers to get early access to community funding. He explained that this creates a “win-win situation” for all parties involved. He said:

“New projects get early access to community funding and support, and Flare token holders get the opportunity to join new exciting projects with zero risk to their principal.”

In July, decentralized exchange (DEX) Pangolin made its debut on the Flare blockchain, creating new cross-chain token pairs and boosting the liquidity of the network. The DEX allows Flare-based decentralized applications (DApps) to add a direct token swaps feature to their projects.

Meanwhile, Web3 is recognized as a great way to solve the budget woes of content creators due to its inherent functions. In a previous interview with Cointelegraph, Mehmet Eryılmaz, the CEO of Faro Company said that Web3 frees content creators from traditional gatekeeping and is a great alternative for crowdfunding entertainment projects.

Laura Moreby, an executive at Lena Instruments, said that their firm which is a major Flare holder will continue to offer its support to the project. “CloudFunding is a modern, decentralized launchpad that will allow the community to support the best possible projects within the ecosystem, having been carefully curated by the platform,” Moreby said.