Ethereum Foundation Plans to Utilize $30 Million to Fund Creation of ETH 2.0 and Scaling Projects
The future is now, or at least that is it seems for Ethereum, the second largest cryptocurrency network in the market. While it is true that ETH lost a lot of its value since the network boomed in 2017, the company’s team is still pretty much confident that they will be able to organize the ecosystem and create something better.
Today, May 21, the Ethereum Foundation officially announced that it would take around $30 million USD in order to develop the key projects of the ecosystem in the future. From this amount of money, $19 million USD will be used within the next 12 months in order to “build the Ethereum of tomorrow”.
Among the main projects which will receive the funding, we can clearly see “Ethereum 2.0” (updates on the main Ethereum network) and Plasma, a layer 2 scaling solution that is being heavily awaited.
According to the foundation, another $8 million USD will be spent on supporting the current mainnet, too, known by the developers as Ethereum 1x. This means that they will continue to support their current work while they are developing the upgrades that will Ethereum to the next level.
The foundation has affirmed that ETH is used in order to secure several assets today and also as the base layer for many applications. Because of this, it is vital to be able to continue the support of Ethereum 1.0 while the migration to the next chain is not yet complete and the truth is that it is still far away, being more of a project than a reality, so this is a very sensible decision.
It was also affirmed that the foundation intends to make sure that Ethereum 1.0 continues to be the dominant platform on smart contracts for a long time (only to be overcome by the other Ethereum 2.0 project), so they will not stop their focus on the current project to move it all to something that does not have any kind of public right now.
The final $3 million USD will be used mostly in publicity in order to raise the awareness of the community and to help to fund developers, too. Education on what Ethereum and the crypto world are will also be important features, as well as the funding of Devcon, which is set to support more regional ETH communities.
While $30 million USD may look like a lot of money, the truth is that the Ethereum Foundation spent $27 million USD last year only in grants to over 90 different projects. It is not slightly cheap to help a whole ecosystem to grow as much as Ethereum has been growing. Most of the projects which received grants were focused on the scalability of Ethereum.
At the time of this report, the Ethereum Foundation holds something like $160 million USD worth of Ether, around 0.6% of all ETH in existence. These resources, however, are expected to decrease as time passes and other companies will have to take on the role of the foundation, which would further decentralize the ecosystem, too.
According to the Ethereum Foundation’s original announcement, these efforts will help in the construction of the network and to create a more sustainable path for the future of the ecosystem.
Aya Miyaguchi, the executive director of the foundation, was interviewed by Coindesk and it affirmed that many people in the ecosystem look at the ETH foundation as a very important voice and that they want to empower the community, which is why they are focused on creating a better network.