Injective, a Layer 1 blockchain protocol founded in 2018, has launched a $150 million ecosystem fund to support developers building on top of the Cosmos network.
The so-called ecosystem group is backed by a large consortium of VC and Web3 firms, including Pantera Capital, Kraken Ventures, Jump Crypto, Kucoin Ventures, Delphi Labs, IDG Capital, Gate Labs, and Flow Traders. According to Injective, the consortium is the largest assembled within the broad Cosmos ecosystem.
Developers selected for the fund will receive support through “tailored tokens and equity investments,” in addition to mentoring, technical assistance, business development and marketing, Injective said. Projects that build decentralized finance (DeFI) and interoperability infrastructures will receive top priority. Funds have also been earmarked for projects to create commercial platforms, scalability solutions and “proof-of-stake” infrastructures.
When asked how the funds would be allocated, Injective Labs co-founder and CEO Eric Chen told Cointelegraph: “The ecosystem initiative approach to fund allocation is to focus on finding the right fit for each project, in instead of being too strict with a fixed number for funding. And he added:
“[E]In terms of stage, the group is primarily targeting early-stage projects (seed for Series B), but follow-on funding can also be considered on a case-by-case basis. The size of the funds awarded will vary depending on the stage and needs of the project, with the goal of providing the right level of support for each project to be successful.”
Injective, also known as Injective Protocol, is a decentralized smart contract platform built with the Cosmos SDK, a development kit that promotes faster and more cost-effective infrastructure than Ethereum.. Chen said that Cosmos offers more versatility, customization options, and horizontal scalability than other blockchains.
“I don’t think DeFi is meant to attack TradFi. DeFi is supposed to complement TradFi, at least initially,” argues @avalabsofficial‘s @el33th4xor when asked by Cointelegraph’s reporter @gazza_jenks at the @wef in Davos.
Do you agree about his thoughts on DeFi’s purpose? #CTWEF23 pic.twitter.com/BH2VPV2po2
— Cointelegraph (@Cointelegraph) January 17, 2023
“I don’t think DeFi is meant to attack TradFi. DeFi is supposed to complement TradFi, at least initially,” argues @el33th4xor of @avalabsofficial when asked by Cointelegraph reporter @gazza_jenks at @wef in Davos.
Do you agree with his thoughts on the purpose of DeFi?
Cosmos has a market capitalization of approximately $3.7 billion, making it the 20th largest blockchain network, according to CoinMarketCap.
DeFi entered the public discourse in the summer of 2020, with several prominent projects kick-starting the cryptocurrency bull market shortly after Bitcoin’s quadrennial split.. Although DeFi activity has slowed in the past year, the sector has been largely immune to the problems plaguing centralized finance, or CeFi, platforms.
“The decentralized nature of DeFi protocols allows for greater transparency and true ownership of funds, which will always be a key advantage over centralized finance,” Chen explained.
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