Leading cryptocurrency exchange, Binance, recently announced that it has launched a $1 billion fund to accelerate the growth and development of the Binance Smart Chain (BSC) network.
In an official blog post on Tuesday, Binance revealed that this fund will assist in boosting the reach of the BSC network as well as increasing the number of network participants and project development on the platform.
A Breakdown of the Fund
Going further, Binance gave a detailed breakdown of how the $1 billion Fund will be utilized. There are four major categories, with each targeting a different goal.
The first category is talent development and Binance allocated $100 million to this program. It entails mentoring developer communities, providing academic scholarships to universities, educating new investors, and supporting research and development endeavors within the crypto and blockchain space.
The second category is the liquidity incentive program, which has also been allocated $100 million. This program is geared toward providing liquidity rewards to several DeFi protocols on the BSC network based on different metrics including trading volume, innovation, TVL, and many more.
The third category is worth higher than the first two. It involves a $300 million allocation which has been assigned to a builder and incubation program.
Out of the $300 million, Binance will invest about $100 million in conducting hackathons, bug bounty programs, and more. The remaining $200 million will then be used to incubate up to 100 innovative decentralized apps (dApps) that are building on the BSC network.
The last category, which is the investment program, receives a significant portion of the fund, a whopping $500 million. It is targeted at growing decentralized computing, gaming, metaverse, virtual reality, artificial intelligence, and blockchain-based financial services not only on BSC but on all blockchain networks.
This investment program will also bring several real-life use cases of blockchain technology and bridge the gap between the crypto industry and traditional financial systems, increasing mainstream adoption.
BSC Massive Growth
Over the past year that BSC was launched, the project has managed to attract more than 100 DeFi projects, following a $100 million Accelerator Fund.
The BSC network has supported over 200 startups via hackathons and grant programs. As part of the accelerator fund, Binance had even donated $100,000 to support the Ethereum platform, Gitcoin Grants, in a subtle attempt to refute allegations that BSC is an “Ethereum Killer”.