The money will aid in the development of the Binance Smart Chain. Binance, the world's largest cryptocurrency exchange, has announced the creation of a $1 billion cryptocurrency growth fund to promote the development of projects on the Binance Smart Chain.
Binance Pursues BSC Expansion
The battle for Layer 1 blockchains is heating up, and Binance is stepping up its investment. The exchange announced Tuesday the establishment of a $1 billion development fund to promote businesses built on the Binance Smart Chain.
Binance says in a blog post announcing the acquisition that the majority of the money would be utilized to accelerate development in gaming, virtual reality, and blockchain-based financial services. While the exchange's primary emphasis will be on development of the Binance Smart Chain, it has stated that it intends to assist other blockchain infrastructure initiatives, with partnerships with many industry-leading companies in the works.
The remaining $300 million will be used to bolster the current builder incentive program via regional and worldwide hackathons, collaborative bug bounty programs, and developer conferences.
Additionally, the fund will provide liquidity incentives to DeFi protocols that are built on the Binance Smart Chain. Additionally, $100 million will be allocated to talent development initiatives like as mentoring developer communities, training new crypto investors, and giving academic scholarships to colleges.
Gwendolyn Regina, investment director of Binance Smart Chain Accelerator Fund, said the following in response to the update:
"With the $1 billion project, our emphasis will be expanded to include the development of cross-chain and multi-chain infrastructures that connect several kinds of blockchains."
Layer 1 blockchains have seen an explosion in popularity over the last several months. Massive quantities of users and liquidity have entered the ecosystems of networks such as Solana and Avalanche, in part due to easier access through cross-chain bridges such as the Avalanche Bridge and Wormhole.
While Binance Smart Chain has consistently maintained an average of one million daily active addresses, it has not grown as rapidly as its rivals in recent months. Along with expanding DeFi and gaming on Binance Smart Chain, Regina's remarks suggest that the exchange thinks cross-chain interoperability will be critical to luring more users in the future.
Binance Smart Chain is a decentralized blockchain that was created in September 2020 by Binance. It has many of the same capabilities as Ethereum but with much lower gas costs. Additionally, through the Ethereum Virtual Machine, the chain is interoperable with the Ethereum ecosystem.
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