Announcement: Suspension of Flowty Services

Flowty Community,

The Flowty team has spent much of the last few months evaluating the best path forward for the platform. We have been building Flowty for over five years, and the platform has been live for over four years. We have a truly incredible community and feel fortunate to have the unwavering support and loyalty of so many of you. You took a chance on a grassroots platform built by Flow community members, and we are forever grateful.

Unfortunately, the reality for Flowty is that the addressable market for NFT services platforms is significantly smaller than it once was and what we imagined it could become. Without structural changes or external support, there is simply not enough volume for Flowty to sustainably operate, let alone thrive.

Next Steps

As a result, we will be pausing most Flowty services while we evaluate strategic alternatives. The following are the steps we are taking for each of Flowty’s core services. Please continue reading to the next section if you would like to support our efforts to resume operations.

1. Sales Marketplace

   1. Effective in 24 hours

      1. Flowty users will no longer be able to add new sales listings to the marketplace

      2. Existing sales listings will be removed from the marketplace

2. Loan Marketplace

   1. Effective today

      1. The max loan duration has been reduced from 180 days to 90 days

   2. Going forward

      1. Over the next few weeks, we will reduce the max loan duration to 60 days, then 30 days and ultimately remove the ability to post new loan listings

      2. Borrowers will still be able to repay loans at any time throughout this process

   3. Rationale

      1. We understand that many borrowers utilize a refinancing strategy in which existing loans are repaid with new loans

      2. We want to give those borrowers time to manage and unwind their loan portfolios before loan operations are formally suspended

3. Rentals

   1. Effective in 24 hours

      1. Flowty users will no longer be able to add new rental listings to the marketplace

      2. Existing rental listings will be removed from the marketplace

4. Launchpad

   1. Effective in 24 hours

      1. The launchpad feature will be suspended

We understand that this will come as a surprise to some and may be disappointing to those who rely on Flowty. We did not take this decision lightly and wish things had turned out differently. We also believe that, with your help (see below), there may still be a path to restoring services in the future.

Flowty’s Importance to Flow and Dapper Sports

We strongly believe that Flowty brings significant value to the Dapper Sports suite of products and to the broad Flow ecosystem. For builders, creators, traders, collectors, and any other stakeholders in the NFT world on Flow, we are a critical piece of the puzzle.

Flowty offers a permissionless, decentralized, out-of-the-box solution for NFT purchases, sales, loans, rentals, and launchpad services. Said another way, in the absence of Flowty, many current and future NFT collections would need to independently manage or rebuild these services in-house, which, in many cases, is a prohibitively expensive and resource-intensive undertaking for prospective builders. In addition, Flowty offers many unique services on Flow.

To date, Flowty has facilitated:

• $10+ million sales volume across almost 2 million transactions

• $5+ million in loan volume across thousands of loans

• Hundreds of free NFT collection launches

• Thousands of free NFT transfers between user wallets

• Many of the largest transactions in Flow blockchain history

The following Flowty features are not available anywhere else on Flow’s primary (Cadence) ecosystem:

• Bulk listing

• Fair Market Value integration with LiveToken (and, historically, OTM) valuation metrics

• NFT loans

• NFT rentals

• Automatic and instant feature support for all NFT collections on Flow

• <$1 listings for Top Shot moments (i.e. the trade ticket economy relies heavily on Flowty)

• And much more

Flowty’s incredible engineering team also built the widely used account linking feature on Flow.

In short, we believe that the Flow ecosystem, NBA Top Shot, NFL All Day and other platforms and collections that rely on Flowty as a service provider would be in a difficult situation without Flowty.

Importantly, Flowty is also the sole marketplace available for Ballerz, Flunks, La Liga, UFC Strike, Dimension X and many other NFT collections with passionate communities. To our knowledge, owners of NFTs from these collections would have limited or no marketplace options if Flowty were no longer in service.

What You Can Do to Help

The only viable path we have identified to ensure the continuity of Flowty is external support from Flow or Dapper. Both Flow and Dapper have been supportive and strong partners over the years, and we are very appreciative. We are at an inflection point, however, and need a long-term solution.

We have had preliminary discussions with the Flow and Dapper teams about what options might be available. We believe the best path toward a sustainable outcome is ensuring they fully understand the value Flowty provides to the ecosystem.

If you value Flowty’s continuity and feel that it is important for Flowty to continue to provide services on Flow, please take a few minutes to share this announcement with your network or share your thoughts publicly on social media. We would greatly appreciate any support.

Summary

We do not know what the future holds but will be working hard to find a way to keep Flowty around, whether through support from Dapper, Flow or another long-term solution. We will share any meaningful updates as appropriate. Thank you again for your support. Please feel free to reach out at any time via Discord or Twitter with questions.

Flowty: Built for Collectors, by Collectors

Mike (mbl267) and the Flowty Team