Blog / Articles / ICO Start-Ups to Create Ethereum Community Fund to Sponsor Projects

ICO Start-Ups to Create Ethereum Community Fund to Sponsor Projects

ICO Start-Ups to Create Ethereum Community Fund to Sponsor Projects

Given its versatility, Ethereum has grown to not only be known as a digital currency, but rather as a platform for creating innovative, crypto-based projects as well. In an effort to further encourage development of apps, services and tokens on the Ethereum platform, six large blockchain-related companies alongside with a Japanese venture capital firm, have decided to create the Ethereum Community Fund (ECF).

According to recent reports, the purpose of the ECF will be to fund projects and businesses that are part of the Ethereum ecosystem. At the beginning, the community fund will start with $100 million, raised by six projects alongside the venture capital firm. Reports indicate that the Ethereum creator, Vitalik Buterin, will be part of the advisory body.

Ethereum

In a recent press statement, Buterin mentioned that: “Ethereum has grown beyond my expectations over the last few years, but the work is clearly not finished. Delivering value that matches the hype should be the mantra of 2018; efforts such as the ECF which help organize the development of the ecosystem are going to help to make that possible.”

So far, there is not much information regarding how the ECF will work, fund projects and accept applications, yet it is known that the aid capital will be offered via grants. What’s more exciting is the fact that this will not happen in exchange for tokens or equity, but rather to projects that are bound to enrich the community, without receiving anything in return.

Therefore, the fund website mentions that the ECF program will work as a permanent financial endowment, meant to aid and support projects that are capable of facilitating the build of a better open-source infrastructure, innovative applications and more.

It is known that the grants can range anywhere between $50,000 and up to $500,000 depending on the funding requirements for projects. Additionally, follow-on grants can also be offered to further encourage and stimulate progress.

It is important to point out the fact that in the past, the Ethereum Foundation, which is not directly affiliated to the Ethereum Community Fund, has indeed run its very own grant program, thus giving out checks ranging from $50,000 to $1 million for several projects.

Based on everything that has been outlined so far, what are your thoughts on the Ethereum Community Fund? Let us know in the comment section below.  

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