Polychain Capital and Web3 Foundation Support Polkadot Through New Investment Fund

Polychain Capital and Web3 Foundation will launch a new investment fund for projects created on the basis of the protocol of interaction between blockchains Polkadot.

The creators of the Polkadot Ecosystem Fund did not specify the estimated size of the investment, but said that it was a few million dollars. The launch of the Polkadot blockchain interaction protocol is expected this year. The network is being developed by the Swiss non-profit foundation Web3 in close cooperation with the blockchain startup Parity Technologies, which is led by Ethereum co-founder Gavin Wood.

“We have a successful collaboration experience that we want to continue,” said Zeke Turner, head of communications at Web3 Foundation, about the latest partnership with Polychain. “The investment committee is looking for projects that add long-term value to the Polkadot ecosystem.”

Speaking about the size of the fund, Turner said that it “amounts to millions and can be recapitalized at any stage depending on the set investment goals.” He also noted that unlike grant financing, when investments are made strictly unilaterally, a share of capital from participating startups may be required to finance from the Polkadot Ecosystem Fund.

“It can be assumed that the transfer of value will be implemented in both directions to equalize long-term incentives,” Turner said.

Since December
last year, the Web3 Foundation provided grants to projects using the application infrastructure on the Substrate blockchain from Polkadot. Now the fourth wave of grants is being implemented and more than 40 projects were funded by non-profit organizations in the amount of $ 3,000 to $ 100,000.

In a statement, Wood, who also serves as president of the Web3 Foundation, said he sees the Polkadot Ecosystem Fund as “an important opportunity for teams at all stages to get the support they need.”

In August Web3 Foundation released
An experimental version of the protocol for the interaction of blockchains Polkadot for application developers, which was called Kusama.