In a bid to support early-stage projects, The Ecosystem Fund has been launched, as per two press releases obtained by Cointelegraph. The fund is backed by strategic partners, including cryptocurrency exchanges Bitget and MEXC. The financial aid will cover a range of areas, including research and development, recruitment, marketing, community-building programs, and other growth initiatives.
The Ecosystem Fund is managed by CoreDAO, a decentralized autonomous organization (DAO) that operates on the Ethereum blockchain. The DAO’s primary aim is to promote the growth of the decentralized finance (DeFi) sector.
According to the press releases, the fund will provide financial support to projects that align with CoreDAO’s vision of creating a “decentralized, open, and transparent financial system.” The fund will also prioritize projects that offer innovative solutions to existing problems and have the potential to create significant value for the DeFi ecosystem.
The launch of The Ecosystem Fund comes at a time when the DeFi sector is experiencing unprecedented growth. According to data from DeFi Pulse, the total value locked (TVL) in DeFi protocols has surged from $1 billion in June 2020 to over $60 billion in May 2021. The sector’s growth has been driven by factors such as the rise of yield farming, the increasing popularity of stablecoins, and the growing interest in decentralized exchanges (DEXs).
However, despite the sector’s rapid growth, many DeFi projects still face significant challenges in terms of funding and resources. The Ecosystem Fund aims to address this issue by providing financial support to promising projects that may not have access to traditional funding sources.
In a statement to Cointelegraph, a spokesperson for CoreDAO said, “We believe that the DeFi sector has the potential to revolutionize the financial industry and create a more equitable and transparent financial system. However, to realize this vision, we need to support early-stage projects that are working towards this goal. The Ecosystem Fund is our way of contributing to the growth and development of the DeFi ecosystem.”
The spokesperson added that the fund would operate as a DAO, with decisions on funding allocations made by a community of token holders. This approach, the spokesperson said, would ensure that the fund’s resources are used in a transparent and decentralized manner.
The launch of The Ecosystem Fund is likely to be welcomed by many in the DeFi community, who have long called for more support for early-stage projects. With the fund’s focus on innovation and value creation, it is expected to play a significant role in shaping the future of the DeFi sector.