Major cryptocurrency exchange Binance said it has committed more funds to growing the system for its smart contracts on the blockchain, Binance Smart Chain — this time promising to inject $1 billion.
According to the press release, the platform launched a $1 billion blockchain crypto-accreditation fund, with the goal of “accelerating the adoption of digital assets and blockchain technology.”
He explained that the fund will be divided into four main initiatives, namely:
Investments
construction program
talent development
liquidity incentives
Of this amount, $500 million will be split over the last three initiatives. The Builder Program will receive $300 million, while the liquidity incentives and talent development will each receive $100 million, according to Binance.
Another $500 million should be allocated for investments, to "accelerate the adoption of decentralized financial infrastructure." Although the chain is not decentralized, the exchange said the funds should be used to grow decentralized computing, gaming, metaverses, virtual reality, artificial intelligence (AI), and blockchain-based financial services.
Prior to that, the exchange had already invested $100 million to support on-chain Decentralized Finance (DeFi) projects in September last year.
According to Binance CEO Changpeng Zhao, with this initial funding of $100 million, the chain's growth has attracted more than 100 million users. The CEO added that,
“With the additional $1 billion contribution, the network will be better equipped to disrupt traditional finance and accelerate global adoption of digital assets to become the first ever blockchain-based system with one billion users.”
However, he did not specify when that might happen.
According to BscScan, there are about 99.1 million unique addresses on the chain as of October 11 and 6.95 million daily transactions.
For the sake of comparison, we can take a look at Etherscan, which shows 172.2 million unique addresses on the Ethereum (ETH) network on the same date, as well as 1.19 million daily transactions.
According to DeFi Llama, the Binance Chain is right behind Ethereum when it comes to Total Locked Value (TVL), but the difference between the first and second positions is huge: Ethereum's TVL is worth $140.35 billion, while Binance is worth $17.69 billion. The latter hit an all-time high of $32.26 billion in mid-May. For Ethereum, the all-time high was $145.42 in early September.
“Through a $1 billion initiative, our focus will be expanded to building cross-chain, multi-chain, and blockchain-integrated infrastructures,” said Gwendolyn Riggin, Director of Investments, BSC Accelerator Fund. “We are preparing to promote the adoption of cryptocurrencies and blockchain to accelerate their growth. worldwide."
Under this fund, the Binance Chain Steering Committee will help developer communities around the world reach new audiences, provide academic scholarships to institutions, and support research and development in emerging technologies. “A total of 100 innovative dapps/Infra at the top of the chain will receive mentorship from senior venture capitalists along with funding opportunities,” the press release said.
Meanwhile, the Binance Chain community should also run regional and global hackathons, joint reward programs, and developer conferences, with a focus on “blockchain-rich regions” such as Russia, India, Southeast Asia, Europe, the United States, and South America.
At 14:02 UTC, Binance coin (BNB) is trading at $429. It rose 2% in 24 hours, while remaining unchanged within a week.