Binance Launches $1 Billion Fund for BSC Projects
The fund will help support growth on the exchange’s Binance Smart Chain.
- Binance has launched a $1 billion fund to support growth on the Binance Smart Chain.
- The bulk of the funds will be used to develop gaming, virtual reality, and blockchain-based financial services.
- The move comes during a period of fierce competition among Layer 1 blockchains.
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Binance, the world’s biggest cryptocurrency exchange, has announced a $1 billion crypto growth fund to support project development on Binance Smart Chain.
Binance Looks to Boost BSC
Competition among Layer 1 blockchains is heating up, and Binance is investing big.
The exchange announced the launch of a $1 billion development fund Tuesday, aiming to support projects building on Binance Smart Chain.
It's time to accelerate #BinanceSmartChain's journey towards scaling and mass adoption 🚀
We're announcing the biggest growth fund in the history of crypto – the $1 billion fund to push the adoption of not only BSC but the whole blockchain industry.
— BNB Chain 🔶 (@BNBCHAIN) October 12, 2021
In a blog post outlining the move, Binance states that the bulk of the funds will be used to bolster development in gaming, virtual reality, and blockchain-based financial services. While the focus will be on development on Binance Smart Chain, the exchange has indicated that it aims to support other blockchain infrastructure projects, with collaborations from several industry-leading organizations in the works.
Of the remaining funds, $300 million will boost the existing builder reward program by conducting regional and global hackathons, rewarding white hackers through joint bug bounty programs, and running developer conferences.
Additionally, the fund will provide liquidity incentives for DeFi protocols building on Binance Smart Chain. Another $100 million will also go toward talent development through mentoring developer communities, educating new crypto investors, and providing academic scholarships to universities.
Commenting on the update, Gwendolyn Regina, investment director of the Binance Smart Chain Accelerator Fund, stated:
“With the $1 billion initiative, our focus will be widened to building cross-chain and multi-chain infrastructures integrated with different types of blockchains.”
Over the past few months, Layer 1 blockchains have surged in popularity. Networks such as Solana and Avalanche have seen huge amounts of users and liquidity enter their ecosystems, thanks in part to easier accessibility from cross-chain bridges such as Avalanche Bridge and Wormhole.
While Binance Smart Chain has maintained an average of one million daily active addresses, it has not experienced as much recent growth as its competitors. In addition to building out DeFi and gaming on Binance Smart Chain, Regina’s comments also indicate that the exchange believes that cross-chain interoperability will be key to attracting more users in the future.
Binance Smart Chain is a blockchain developed by Binance and launched in September 2020. It boasts much of the same functionality as Ethereum while reducing gas fees substantially. The chain is also compatible with the Ethereum ecosystem through the Ethereum Virtual Machine.
Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and several other cryptocurrencies.