The creators of the Polkadot Ecosystem Fund wouldn’t specify how much was committed but did characterize it as “in the millions” in an interview with CoinDesk.
Expected to formally launch later this year, Polkadot is envisioned as an interoperable proof-of-stake (PoS) blockchain network. It is being developed by the Swiss nonprofit Web3 Foundation in close collaboration with blockchain startup Parity Technologies, which is led by ethereum co-founder Gavin Wood.
Polychain Capital is partnering with the Web3 Foundation to launch a new investment fund for projects building atop the Polkadot network.
As previously reported, the Web3 Foundation sought a $1.2 billion valuation for the project through multiple token sales from investors (including Polychain Capital). How much was ultimately raised by the project has not been disclosed.
“There’s a track record of successful collaborations that we want to continue”, Web3 Foundation communications lead Zeke Turner said of the latest partnership with Polychain, adding:
“The investment committee is looking for projects that will add long-term value to the Polkadot ecosystem.”
Speaking to the size of the fund, Turner said it’s “in the order of millions and can be recapitalized at any stage depending on the supply of investment targets.”
He also said that unlike grant funding, where payment is strictly one-way, investments from the Polkadot Ecosystem Fund may require a percentage of equity from participating startups.
“It’s safe to assume there’s some transfer of value in both directions to align long-term incentives”, said Turner.
Since last December, the Web3 Foundation has been issuing grants to projects using Polkadot’s blockchain application framework, Substrate.
Now on its fourth wave of grants, over 40 projects have been funded in total by the non-profit with amounts ranging from $3,000 to $100,000 per grant.
In August, Web3 Foundation launched an experimental version of Polkadot called Kusama for early application developers and validators to test out. Kusama most recently enabled staking, that 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 Web3 Foundation, said he sees the Polkadot Ecosystem Fund as “an important outlet for teams at all stages to get the support they need.”
To this, Polychain Chief Investment Officer Olaf Carlson-Wee added:
“We are excited to invest and partner with hardcore engineers and entrepreneurs to catalyze the development of economic software built for Polkadot.”
Popular Korean Crypto YouTuber Badly Beaten After Threats From Angry Investors
A South Korean crypto YouTuber was assaulted at his home, with some suggesting the attackers may have been by upset investors.Kyu-hoon “Spunky” Hwang was beaten in an elevator in his apartment block at around 01:00 local time on Friday, according to CoinDesk Korea.
Seoul’s Seongdong police station said it was seeking two suspects who attacked Hwang with a blunt weapon and then escaped. While the victim’s injuries are not life-threatening, he’s reported to be receiving treatment in a hospital.
“It is judged to be a planned crime aimed at Hwang’s life,” said a community notice from CoinRunners, a trading group run by Hwang’s company Bit Gosu.
The team said in the notice it is “severely shocked” and will focus on security after Hwang’s release from hospital.
The self-described “influencer” has been discussing cryptocurrency on his YouTube channel, Spunky’s Bitcoin Broadcasting. since October 2017 when he launched Bit Gosu, according to the report. The channel has around 59,000 subscribers, making Hwang one of the most popular crypto YouTubers in South Korea.
Bit Gosu has been involved in cryptocurrency-related marketing including ICOs and has a total of 10 employees. It also prompted something of a scandal after CoinRunners members were said to have lost funds.
CoinRunners said in the notice that some members had threatened “to kill employees” as a result.
CoinRunners is a members-only service with around 1,000 subscribers that offers both free and paid “gold” memberships. A representative told CoinDesk Korea members are provided cryptocurrency price analysis from Hwang and receive recommendations on ICO investments.
“CoinRunners, CoinRunners Gold and Bitcoin YouTube channels will be temporarily suspended, and we will decide whether to resume business,” a representative said. At press time, Hwang’s channel is still active.