Ethereum 2.0 receives million-dollar donation from Kraken and DeFi projects

Key facts

:

  • The funds will be awarded to development teams working on network software.

  • This grant reveals an interest in implementing more decentralized funding mechanisms.

The Ethereum Foundation announced today that a set of projects operating in the decentralized finance (DeFi) sector, along with the exchange Kraken, donated USD 1.5 billion to accelerate the development of the Ethereum 2.0 execution layer.

So Compound Grants, Lido, Synthetix, The Graph and Uniswap Grants donated USD 250,000 each to support open source development teams working on technical updates to the network.

The funding round will directly benefit developers working on clients compatible with Ethereum software, such as Best, Erigon, Geth, Nethermind and Nimbus. They will receive the gesture from projects coexisting in the Ethereum ecosystem, which are expressing interest in the success of the number two network by market capitalization.

“Our strong support will continue as these [development] teams adapt and scale along with the community at large,” states a note posted on the official Ethereum Foundation blog

.

Recall that this ecosystem is working on an ambitious project involving a transition process

with the idea of turning its blockchain into a powerful virtual processing machine. A process that is popularly known as Ethereum 2.0.

This whole transformation involves leaving behind the Proof of Work (PoW) consensus algorithm to transition to the Proof of Stake (PoS) mechanism. It is a metamorphosis that will be completed in several phases that have already been underway since last year when the Beacon Chain

was activated.

Subsequently, when eth1 and eth2 chains merge in stage 2, there will be a holistic ecosystem that will be divided into the execution layer and the consensus layer. In that sense, the new funding, which will complement the funding already allocated by the Ethereum Foundation, aims to support execution layer (formerly “Eth1

“)

customers

. Ethereum 2.0 receives million-dollar donation from Kraken and DeFi projects <img width=”600″ height=”401″ src=”https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/programadores.png 600w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/programadores-300×201.png 300w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/programadores-391×260.png 391w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/programmers-560×374.png 560w” alt=” /> Several DeFi projects, along with the Kraken exchange did their part to support developers working on network software. Source Pexels.

“These customers will continue to provide critical infrastructure for the network post-merger as Ethereum

moves to a proof-of-stake consensus system. Our strong support will continue as these teams adapt and scale along with the broader community,” the official blog post details.

A more decentralized funding for Ethereum

According to the publication of the Foundation, with this first round of funding by large Ethereum projects, it seeks to “decrease the risks that arise from dependence on a single team or entity.”

Therefore, it is working towards finding more decentralized funding mechanisms for Ethereum’s public assets. This is a further step towards allowing larger groups of participants to directly support the development and maintenance of the client, the note adds.

If all goes according to plan, all these efforts will lead to the community enjoying several benefits that Vitalik Buterin highlighted last May. As CryptoNews reported

at the time, the network’s co-creator believes that Ethereum’s security will be enhanced with proof of stake.

In addition, better thin client protocols are expected, as for Buterin, proof-of-stake thin client protocols are much better designed and “only require a few kilobytes per day to stay in sync.” However, to start enjoying the benefits, users of the network will have to wait as there are no definite dates for the stages that complete the development of the Ethereum 2.0 network to be met.