The Graph Backers Launch a $205M Ecosystem Fund for Grants to Dapp Builders
The fund aims at accelerating the development of key projects within the data-indexing ecosystem's ecosystem. The fund was launched by The Graph's backers, a protocol that makes on-chain data more available to decentralized application (dapps) projects.
Multicoin Capital and Reciprocal Ventures announced the $205 million pot Thursday.
The fund will grant grants to teams that build dapps with The Graph's querying technology. It covers sectors such as decentralized finance (DeFi), NFT, decentralized autonomous organisations (DAO), marketplaces and cross-chain infrastructure.
Deng Chao (managing director at HashKey Capital), stated in a statement that Web 3 is moving forward regardless of whether consumers agree with it. Developers need Web 3 solutions that are decentralized, such as The Graph, and that are accessible to all.
The Graph allows developers to access blockchain data via open inter-program communication protocols, (API), called subgraphs. The retrieved data can be used to power a variety of dapps. The Graph is a critical component of Web 3 infrastructure.
Funds are often set up by growth-oriented crypto projects to attract developers to build applications on their blockchain, or to encourage developers to use their product. Privacy-focused blockchain Secret Network announced last month $400 million in funding. This included a $225 million ecosystem funds. Near blockchain announced an astonishing $800 million in grants funding towards the end of last Year, which included a $250 million ecosystem funds.
Craig Burel, a partner in Reciprocal Ventures and one of The Graph's backers, stated that "Many of today's blockchain applications and protocols are powered by centralized solutions providers."
"In the short term, it will remain that way until there are more decentralized options. We have teamed up with major players in crypto to accelerate that future.
Last month, the Graph Foundation raised $50 Million through a private sale for its GRT token. Allocations were made to Tiger Global and Reciprocal Ventures, as well as Fintech Collective. The funds were to be used to grant developers and to support protocol research and development.
The Graph launched in October on the NEAR blockchain. This was the first time that the product had been run on a non-compatible blockchain with Ethereum.