IOHK, the tech firm behind Cardano (ADA) has launched a public fund to help publish the network’s decentralization further and attract entrepreneurs to the Cardano ecosystem.
In a blog post, the firm revealed the new fund, part of Project Catalyst, is set to allocate funds to pay for proposals that are approved by members of the ADA community, which will be able to use their ADA holdings to vote on projects. The blog post details the fund will be of $250,000 in ADA tokens, and comes after two trial funds.
Initially, the fund is meant to address a specific challenge, of encouraging entrepreneurs to build decentralized applications and businesses on top of the Cardano network over the next six months. Funding protocols the community can make and address various ideas, including marketing, infrastructure development, business planning, and more.
Community members will be able to compete for funding to create their projects. The community voting is part of the blockchain’s Voltaire phase, set to launch by the end of the year. Voltaire will allow the community to decide on software updates, funding, and technical improvements thanks to a “voting and treasury system.”
The ‘right’ to vote will be linked to each participant’s ADA holdings and will earn them additional rewards for voting. Participating in this first funding round will not prevent ADA holders from delegating their ADA and earning rewards as normal.
The voting and treasury system is designed to help Cardano increase its decentralization by allowing ADA holders to directly vote on the future of the network. Community members can review projects on the innovation platform, or a soon-to-be-launched mobile application.
Featured image via Pixabay.