The Ethereum Foundation announced on its official blog the collection of 1.5 million dollars, thanks to the contributions of projects and institutions such as Compound Grants, Kraken, Lido, Synthetix, The Graph and Uniswap Grants, which have donated 250 thousand dollars each one to support Ethereum execution layer client teams.
This announcement is the result of several months of work, and will complement the significant funding provided by the Ethereum Foundation this year.
However, they clarify in the publication that these contributions in the form of donations they will have no impact on the Ethereum Foundation’s ongoing financial support for these task forces.
According to the Foundation, part of its objective with this first round of financing is decrease the risks that come from reliance on any individual team or entityl, as all developers work to maintain quality and open source products in a diverse, decentralized and sustainable way.
The official statement from the Ethereum Foundation states:
“With this goal of customer diversity and network success at heart, we are proud to announce the recipients of this round: Besu, Erigon, Geth, Nethermindy Nimbus.
As a public good, Ethereum benefits from shared responsibility. This is true in terms of customer diversity and the depth and breadth of the ecosystem’s ability to support itself. “
Subsequently, the team behind the second largest cryptocurrency by market capitalization highlights:
“Ethereum is a project with the potential to change and improve the very core of human, social and market interactions on a global scale.
With groundbreaking applications and network innovation and increasing adoption, the Ethereum community is pushing the limits of what is technologically and technologically feasible with each new day.
We are excited to take this next step to continue that growth, and we ask that you join us in our effort to strengthen Ethereum by ensuring that Ethereum remains a diverse and sustainable project, and one that many will maintain for a long time. ”
Why does Ethereum need financing?
Execution layer client support (formerly “Eth1”) continues to be one of the Ethereum Foundation’s highest priorities.
These client teams have supported Ethereum’s growth in recent years, and will continue to provide critical infrastructure for the network after the merger with ETH 2.0, as Ethereum moves to a consensus system Proof-of-Stake leaving the system behind Proof-of-Work as planned.
Foundation reports indicate that since January 2020 The Ethereum Foundation has spent over $ 10 million on R&D for the developers who handle the execution layer.
In this sense, the Ethereum Foundation highlights:
“Our strong support will continue as these teams adapt and scale together with the wider community. At the same time, we believe that it is healthy for Ethereum clients to receive funding and support from a broader range of community stakeholders, reflecting the growth and diversification of the ecosystem.
Collaborative efforts, and specifically those dedicated to supporting teams and builders that maintain a diverse set of Ethereum customers, are an enduring and impactful way to benefit Ethereum in the long term. “
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