Binance has set up a $1 billion growth fund for Binance Smart Chain, to speed up the adoption of digital assets and blockchain technology. The funding, which is one of the biggest growth initiatives the entire crypto industry has ever seen, will be channelled into four key categories: Investments, Builder program, Talent Development, and Liquidity Incentives. Here’s a breakdown of how the funds will be used:
Investments: A total of $500 million from the fund will be used for investments. This fund will be utilized to grow decentralized computing, gaming, metaverse, virtual reality, artificial intelligence and blockchain-based financial services. With collaborations from industry-leading organizations, the investment fund will target scaling blockchain technology for real-life use cases and will bridge the gap between crypto-blockchain and the current technical-financial sectors.
Builder Program: A total of $300 million will be used for a builder program targeted at technological startups. $100 million of this sum will be used to run regional and global hackathons, joint bug bounty programs, developer conferences and to back existing mainstream development programs. The rest will be utilized to nurture and mentor 100 innovative dApps building on top of the Binance Smartchain.
In September last year, Binance Smart Chain announced a $100 million BSC Accelerator Fund to support dApps building on Binance Smartchain. It seed-funded over 40 projects with up to $1 million. In addition, over 60 projects have been incubated under the company’s Most Valuable Builder (MVB) Accelerator Program.
According to the Investment Director at BSC Accelerator Fund, Gwendolyn Regina, the company is still focused on accelerating growth. “The thriving blockchain startup ecosystem has encouraged us to invest our time, efforts and resources in helping companies build from 0 to 1. With the $1 billion initiative, our focus will be widened to building cross-chain and multi-chain infrastructures integrated with different types of blockchains. We’re gearing up to bolster the adoption of crypto and blockchain to accelerate its growth globally,” she explained.
Talent Development: A total of $100 million will focus on Talent development which entails offering mentorship to developer communities, allowing new crypto investors to learn and thrive, providing academic scholarships, running bootcamps and supporting R&D around cryptography, High-performance Consensus protocol, Cross-chain/Multi-chain infra, RegTech & Deep Analytics and more.
Liquidity Incentives: The remaining sum of $100 million is reserved under the Liquidity Incentive initiatives, and this will be used to run sub-programs to encourage participation from traditional financial markets as well as crypto.
According to Changpeng Zhao, Chief Executive Officer of Binance, with the new $1 billion, Binance Smartchain (BSC) will be able “to disrupt traditional finance and accelerate global mass adoption of digital assets to become the first-ever blockchain ecosystem with one billion users.” The Binance Smartchain —a sovereign smart contract blockchain delivering Ethereum Virtual Machine (EVM) compatible programmability, presently has over one million daily active users spread across more than 900 decentralized applications, making it one of the biggest crypto ecosystems.
With a concentration on blockchain-rich regions such as Russia, India, South East Asia, Europe, the United States and South America, the BSC core community will spearhead the growth of BSC regionally. To efficiently achieve its aim, the BSC core community will collaborate with fintech companies, blockchain researchers, crypto advisors and prominent people worldwide to help encourage financial inclusion.