At the beginning of the year, EOS Network Foundation CEO Yves La Rose lauded the EOS community for sticking around and sailing through the storm it endured last year. Rose also asserted that 2023 would be the year of resurgence, and in line with that ambition to make a comeback, EOS is set to gain Ethereum Virtual Machine (EVM) compatibility mid-next month. The Foundation executive hailed the offering as the fastest EVM by a mile, comparing its operation (800 swaps per second) as 3x faster than Solana & BNB Chain and 25x faster than Avalanche.
EOS Network ramps up blockchain development efforts
In anticipation of the launch, EOS Network Ventures on Monday pledged a significant sum to incentivize developers to build on EOS EVM. The venture capital firm hopes to lure the industry’s leading developers into building on the blockchain as its EVM launch looms. Clarifying that the EOS blockchain has always had the tech but lagged on the investment side, the executive said that EOS Network Ventures, which launched a $100 million ecosystem fund last November, has now set aside $20 million to support innovation on the EOS blockchain. La Rose explained in a series of tweets over the weekend that the capital would be put directly into the EOS EVM and GameFi initiatives.
EVM compatibility is critical to rekindling the flame, but there is competition
The Foundation CEO noted that the consensus upgrade set for April 14 would be key to EOS getting going again. In particular, the unique combination of its peak performance and the familiarity of Ethereum will give Solidity developers an excellent experience. The EOS Network Foundation has previously acknowledged that despite Ethereum suffering deficiencies of its own, developers have moved there because it’s where the action is – further ratifying the essence of EVM compatibility.
Peculiarly, EOS is hunting for developer talent in a pool of well-funded competitors, given that several blockchain alternatives already seek to improve Ethereum or topple it altogether. Moreover, EOS also has to dispel critics who recall the $4 billion EOS raised in its initial offering (ICO), capital that hardly helped grow the blockchain’s technical or usage. EOS Network Venture’s pledge markedly comes a month since Cosmos’s equivalent backing entity set up a similar allocation.
To learn more about EOS, check out our Investing in EOS guide.
Cosmos Interchain Foundation’s $40M fund to support ecosystem growth this year
In a Medium blog post published on Feb 20, the Interchain Foundation (ICF) declared its commitment to allocating approximately $40 million to advance the Cosmos interblockchain communications (IBC) ecosystem fundamentals. In addition to investing in core infrastructure, the ICF revealed plans to finance initiatives that promote the adoption of the Cosmos ecosystem. This includes programs such as the Cosmos Developer Portal, the Interchain Builders Program, the Interchain Developer Academy, and integration of Interchain NFTs and the Inter-Blockchain Communication (IBC) protocol with chains such as Polkadot and Hyper Ledger.
The non-profit further noted it would continue supporting the growth and evolution of CosmWasm and Ethermint, two technologies the organization views as critical components for smart contracts and Ethereum Virtual Machine (EVM) compatible blockchains. The ICF also disclosed that it intends to restart the Small Grants Program in 2023 after suspending it last year due to a massive backlog of applications. In the meantime, contributions are rewarded via the Atom Delegations Program and encouraged interested teams to avail themselves for non-incentivized mentorship and assistance from the Builders Program.
The ICF has been the driving force behind the IBC protocol and the Interchain Stack, which supports a score of blockchains, including Cosmos SDK, Cosmos Hub, Tendermint Core, and CometBFT. Last week, the Cosmos Hub got a huge update after a near-unanimous approval by stakers. Community members ratified the introduction of the v9-Lambda upgrade, which brings replicated security (RS).
v9-Lambda upgrade to integrate replicated security
RS launched as the first iteration of the Cosmos interchain security (ICS) feature, making the Cosmos Hub a security provider for the ecosystem. The Mar 15 release now means new projects can enjoy the benefits of launching on consumer chains that are secured by the Hub. By leveraging the new RS feature, consumer chains will be able to lease security from a provider chain, enabling their blocks to be generated by the provider’s validator set. The provider chain will safeguard against attacks on the consumer chain, making it extremely difficult for malicious actors to corrupt the consumer chain without taking over the provider chain entirely.
Consumer chains can benefit from the provider’s robust validator set and total stake, as anyone trying to corrupt a consumer chain would need to take over the entire provider chain. Overall, the Hub serves as an excellent security provider chain since the cost of attacking it is prohibitively high. Cosmos Hub stakers will receive up to 25% of the fees generated by consumer chains that use Hub security. Additionally, these protocol platforms can allocate token inflation and revenue streams to Cosmos stakers. Thanks to the ICS implementation, consumer chains can focus on growing their network’s economy, while Cosmos Hub’s validators provide dependable security against 51% attacks and double-spending.
To learn more about Cosmos, check out our Investing in Cosmos guide.
BitDAO’s Mantle Core proposes a $200M EcoFund to spur Web3 adoption
In addition to EOS and Cosmos networks, BitDAO’s high-performant modular Ethereum layer-two blockchain Mantle Core has also revealed plans to establish a fund to support builders. The Mantle EcoFund 1 aims to accelerate the adoption of its network by developers and decentralized applications. According to a recent discussion proposal by Mantle, the fund will target nascent Web3 companies in the pre-seed, seed, and Series A rounds deploying on Mantle. It would also require 1:1 capital matching from strategic venture partners to achieve the targeted amount.
Co-investment strategy for a unique mix of partners
The capital pool would be catalyzed by a $100 million allocation from BitDAO, starting with a capital call of $10 million from the organization’s treasury. BitDAO would then break down the remaining amount into three segregated but equal capital calls. The DAO will also perform all the necessary checks before approving any subsequent capital calls and would be immune to penalties should it fail to meet these calls. Its co-investment strategy means strategic venture partners (composed of both founders and possibly founders) also come into play and would be expected to raise another $100 million if the Mantle EcoFund 1 proposal is approved.
The fund has already attracted interest from big investment players, including Folius Ventures, QCP Capital, Selini Capital, Pantera, Play Ventures, Dragonfly Capital, Spartan, Lemniscap, and Cadenza Ventures. The involvement of this unique mix of partners is expected to present fresh and stimulating possibilities that would accelerate the growth of the Web3 ecosystem by encouraging innovative products created by ambitious founders motivated by market needs and backed by sustainable business and revenue models.
Fund model and approach
With stewardship from BitDAO’s venture partner Mirana Ventures, the Mantle EcoFund 1 is expected to span a three-year investment period with an option for an extra two years. The firm would be joined by representatives from the Mantle project leadership team, BitDAO, and Bybit to complete an investment committee that will serve an advisory role to ensure the fund conforms to the highest standards of venture investing.
The fund also will invest in over 100 projects on Mantle and generate a 1.5x multiple on invested capital over the fund’s lifespan. As for management fees, a proposed 2% management fee will be used to cover the expenses of the Eco model and approach the Fund operating team, including sourcing, due diligence, legal, portfolio support, and fund administration. The Mantle EcoFund will distribute 20% of its investment returns to the strategic venture partners once the initial capital provided by BitDAO has been repaid, which would better align the financial interests of the Mantle EcoFund and the partners.
To learn more about BitDAO, check out our Investing in BitDAO guide.
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