Polychain Capital joins forces with the Web3 Foundation to launch a new investment fund for projects built on the Polkadot network.
The creators of the Polkadot Ecosystem Fund would not have specified the amount of the commitments, but called it "millions" in an interview with CoinDesk.
Polkadot, which is scheduled to be officially launched by the end of the year, is expected to be considered as a network of interoperable game validation (PoS) block chains, similar to today's Ethereum. It is developed by the Swiss foundation Web3, a non-profit association, in close collaboration with the blockchain start-up, Parity Technologies, led by Ethereum co-founder, Gavin Wood.
As noted previously, the Web3 Foundation sought $ 1.2 billion worth of the project through several token sales by investors (including Polychain Capital). How much was finally raised by the project was not disclosed.
"We have been keen to continue our successful collaboration for a long time," said Zeke Turner, Head of Communications at Web3 Foundation, about the latest partnership with Polychain, adding:
"The Investment Committee is looking for projects that will bring long-term value to the Polkadot ecosystem."
Regarding the size of the fund, Mr. Turner said it was "on the order of millions of dollars and could be recapitalized at any time, depending on the offer of investment objectives" .
He also added that, unlike grant financing, where payment is strictly one-sided, Polkadot Ecosystem Fund investments may require a percentage of the equity of participating startups.
"It is safe to assume that there is some value transfer in both directions to align long-term incentives," Turner said.
Since last December, the Web3 Foundation has awarded grants to projects using Polkadot's blockchain application framework, Substrate.
Now on the fourth wave of grants, more than 40 projects have been funded in total by non-profit organizations, with amounts ranging from $ 3,000 to $ 10,000 per grant.
In August, Web3 Foundation launched an experimental version of Polkadot called Kusama for early developers and validators of applications. Kusama more recently picket activationthat is, the ability for users to earn rewards for validating transactions and processing blocks on the network.
In a statement, Wood, who is also president of the Web3 Foundation, said that he viewed the Polkadot Ecosystem Fund as "an important way for teams at all stages to get the support they need. "
Olaf Carlson-Wee, Investment Director of Polychain, added:
"We are excited to invest and collaborate with experienced engineers and contractors to catalyze the development of cost-effective software designed for Polkadot."
Olaf Carlson-Wee image of Polychain Capital via the CoinDesk Archive