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Ethereum Foundation to Focus on Blockchain Development by Allocating $30 M in the Coming Year


The Ethereum Foundation an extended arm of Ethereum (ETH) venture, is planning to set aside $30 million in the following year to fund the development of ongoing smart contract platform.  

Aya Miyaguchi, the Executive Director at the Ethereum Foundation during the ConsenSys' Ethereal Summit, held in New York on May 11, 2019, announced that the Foundation has utilized $27 million in the previous year for the development of critical projects supporting the Ethereum ecosystem.  

Concentrating On Projects "Delivering Second-Order Effects" 

Discussing the criteria for the Ethereum Foundation to issuing grants to different blockchain ventures, Miyaguchi said the non-benefit's administration assesses "how important the problem is that the team is working on."  

Miyaguchi additionally said that grants issued to the projects depended on whether the Foundation trusts they will " produce second-order effects " - which means tasks may get financing only if they can conceivably benefit the cryptocurrency market and FinTech industry.  

Projects Solving "Critical" Problems to Receive Funding

Aya Miyaguchi additionally said that specific tasks might be granted funds dependent on whether they are solving “critical” issue. She uncovered that last year's funds had been discharged in five stages, with the underlying payment made in March 2018. Altogether, the Ethereum Foundation issued $2.5 million in gifts to around 13 crypto activities.  

 Started in July 2014, by Vitalik Buterin, Gavin Wood, Joseph Lubin (among others), the Ethereum Foundation has supported projects, related to decentralized finance (DeFi), which have been revolved around creating use cases for the world's biggest smart contract platform.  

$13 Million Allocated To Scalability Projects

As indicated by Miyaguchi, Ethereum-related projects which center around enhancing blockchain adaptability have received most of financing. Around 90 diverse distributed ledger technology (DLT) - based ventures have received grants from the Ethereum Foundation in the previous couple of years. Until now, $13 million in funding has been apportioned to ventures explicitly engaged with expanding the scalability of blockchain applications.  

On May 11, 2019, Buterin and Lubin disclosed they had given away 1,000 ETH (each) as donation to help further development and advancement of Ethereum-related projects. Altogether, both Ethereum co-founders donated 2,000 ETH ($380,000 at current costs) to the Moloch decentralized autonomous organization (DAO). The fundamental objective of the Moloch DAO venture is to raise finances which will support the Ethereum ecosystem.