Injective, a layer-1 blockchain protocol founded in 2018, has launched a $150 million ecosystem fund to support developers building on the Cosmos network.
The so-called ecosystem group is backed by a large consortium of venture capital 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 wider Cosmos ecosystem.
Developers selected for the fund will receive support through “tailored token and equity investments,” in addition to mentorship, technical assistance, business development and marketing, Injective said. Projects to build decentralized finance (DeFI) and interoperability infrastructure are given top priority. Funds have also been earmarked for projects to build trading platforms, scalability solutions and proof-of-stake infrastructure.
When asked how funds would be allocated, Eric Chen, co-founder and CEO of Injective Labs, told Cointelegraph, “The ecosystem initiative’s approach to fund allocation is to focus on finding the right fit for each project, rather than being too strict on a fixed number for funding.” He added:
“[I]In terms of phase, the group mainly focuses on early stage projects (start-up phase to series B), but follow-up financing can also be considered on a case-by-case basis. The amount of funding awarded will vary depending on the phase and needs of the project, with the aim of providing the right level of support to make each project succeed.”
Injective, also known as Injective Protocol, is a decentralized smart contract platform built using Cosmos SDK, a development kit that promotes a faster and more cost-effective infrastructure than Ethereum. Chen said 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 @avalabsofficials @el33th4xor at the request of the Cointelegraph reporter @gazza_jenks at the @wef in Davos.
Do you agree with his thoughts on the purpose of DeFi? #CTWEF23 pic.twitter.com/BH2VPV2po2
— Muntelegraaf (@Cointelegraaf) January 17, 2023
Cosmos has a market cap of approximately $3.7 billion, making it the 20th largest blockchain network according to CoinMarketCap.
Related: DeFi Issues and Opportunities in 2023: Market Talks
DeFi entered the public debate in the summer of 2020, with several prominent projects sparking the crypto bull market shortly after Bitcoin’s quadrennial halving. While DeFi activity has slowed over the past year, the industry has remained largely immune to the problems facing 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 funding,” Chen continues.
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