A group of DeFi projects and the US crypto exchange Kraken have donated USD 250,000 each to the Ethereum Foundation to support client teams working on the Ethereum (ETH) 2.0 upgrade.
August 24th, The Ethereum Foundation announced that donations were made by Kraken, Compound Grants, Lido, Synthetix, The Graph, and Uniswap Grants. The funds will complement funding provided by the foundation earlier this year, to support Ethereum execution layer teams.
“Ethereum’s diverse client ecosystem is the foundation for everything we are building together. This includes both execution layer and consensus layer clients, which are essential parts of Ethereum’s future post-launch. fusion”, the ad said.
The donations, totaling $ 1.5 million, will go to teams of open source developers such as Besu, Erigon, Geth, Nimbus and Nethermind, which will provide “critical network infrastructure” following the merger of ETH 1.0 and ETH 2.0, which will see ETH transition from a proof of work mechanism to a proof of stake mechanism.
1 / A diverse execution-layer client ecosystem is at the heart of all that we’re building together.
– Ethereum (@ethereum) August 24, 2021
A diverse ecosystem of execution layer clients is at the core of everything we are building together. Today, we are pleased to announce that Kraken, Compound Grants, Lido, Synthetix, The Graph, and Uniswap Grants are donating $ 250,000 each to support Ethereum client teams.
The CEO and co-founder of Kraken, Jesse Powell stated that the firm was proud to be “giving back to the brave builders who are hard at work on the front lines of cryptocurrency innovation.”
According Kraken, in July, users of the exchange had already staked 800,000 ETH in Eth2, worth USD 2,500 million at current prices. At the time, the platform stated that it had distributed 25,300 ETH in rewards generated by staking customers.
“This project represents an effort to ensure the long-term growth, health and decentralization of Ethereum. Each of these elements can be exemplified by the diversity of customers, the strength of the teams themselves, and our confidence that Ethereum will continue to succeed as they succeed, “the announcement read.
The Ethereum Enhancement Proposal (EIP) 1559 update went live earlier this month, introducing a burn mechanism as part of its adjusted gas rate structure. At the time of writing, data from Etherscan shows that 4.85 ETH worth about $ 15,300 per minute is currently being burned.