IOHK Launches A $250k ‘Decentralized Treasury’ Fund To Boost Cardano Blockchain Development
- Cardano blockchain launches Project Catalyst.
- The $250,000 fund will be distributed to developers building on the blockchain.
- Time for decentralized treasuries?
IOHK, Input Output Hong Kong, a blockchain research and development firm building on Cardano, announced the launch of its first public fund, Project Catalyst, on Thursday. The public fund launch features a $250,000 grant program, paid out in ADA, to incentivize developers to build solutions on the Cardano blockchain.
Project Catalyst aims at pushing the Cardano blockchain into a fully decentralized blockchain providing decentralized on-chain governance and treasuries to enhance innovation, as planned in its Volitaire launch. The public fund follows two previous private fund test launches – Fund 0, which included a focus group made up of IOG team members, and Fund 1, which included 50 random members from the Cardano community.
Project Catalyst, Fund 2, offers a public fund that gives developers “the chance to compete for the funding to bring their project center stage.” This project will start with $250,000 in ADA, allowing anyone with an idea to create a proposal and get funding through a community vote to start development.
Project Catalyst is expected to run at least $70 million in ADA every year.
Charles Hoskinson, Founder of Cardano, has been a big proponent of these kinds of decentralized treasuries that give the community the power to distribute funds. In a statement obtained by BEG, Hoskinson said,
“The fund, combined with its democratic voting system, means that every ADA holder can be a part of making key decisions for the future of the ecosystem.”
The new funding project will increase the independence of developers on a specific Cardano-based project as the community decided how much funding they get and push developers into building community-focused applications.
The network participants will also have access to staking mechanisms to vote on the governance protocol. With the launch of Project Catalyst, Cardano is set to be fully decentralized, IOHK states:
“This marks an exciting step forward in the development of Cardano, as it moves towards becoming a fully decentralized blockchain governed entirely by its community.”
Project Catalyst is the first step to the launch of Cardano’s upgrade, Voltaire, which is expected at the end of the year.