SSV launches $50M ecosystem fund to support ETH staking tech

Validator infrastructure developer has launched a new ecosystem fund to support Ethereum proof-of-stake decentralization – a move that the company said would promote innovation around Ether (ETH) staking technologies. 

The ecosystem fund, valued at $50 million, will support projects building applications using distributed validator technology, or DVT, the company announced on Jan. 17. The fund is solely dedicated to backing DVT use cases in support of Ethereum’s long-term decentralization efforts.

DVT is an open-source protocol that allows a validator’s responsibilities to be distributed across multiple nodes. The protocol was a key component of Ethereum co-founder Vitalik Buterin’s roadmap for Eth 2.0, as more DVT implementation means more decentralization.

SSV noted that several venture capital investors – including Digital Currency Group, HashKey, NGC, Everstake, GSR and SevenX – have promoted Ethereum’s use of DVT.

SSV said it had already pledged $3 million toward developer grants and that $1.2 million has been allocated to over 20 proof-of-stake projects, including Blockscape, ANKR and Moonstake.

According to Alon Muroch, the core development lead at SSV, Ethereum is “currently secured by a small group of companies, which, when put together, control the entire blockchain.” He said the aim of DVT technology “is to distribute Ethereum’s security by offering quick and easy access to an open-source, public good which will completely change the way staking is operated today.”

Related: ETH staking on top exchanges contributes to Ethereum censorship: Data

Ethereum’s transition to proof-of-stake is a multi-phased process designed to enhance the network’s scalability, security and decentralization. The transition introduced ETH staking, where users actively participate in validating transactions. The minimum staking threshold for becoming a validator on Ethereum is 32 ETH.

As of early December, it was reported that demand for liquid ETH staking was on the rise. Blockchain analytics firm Nansen referred to staked ETH as the “first yield-bearing instrument to reach significant scale in DeFi.”

All Dutch and English crypto news!

Crypto price predictions: SUSHI, Immutable X, AGIX

SushiSwap price jumped as volume and revenue in DEX platforms rose. Immutable X (IMX) did well after the launch of Passport. SingularityDEX token could be forming a...

Bitcoin slips amid market reaction to US jobs report

Bitcoin price fell slightly to retest support near $23,250 on Friday. The top cryptocurrency's price action mirrored early trades on Wall Street as the market reacted...

Aandeel van de grote Bitcoin whale stijgt meer dan 100% in één maand

Het bedrijf MicroStrategy kocht vorig jaar een gigantisch aantal Bitcoin. Het bedrijf schreef in 2022 meer dan 8.800 Bitcoin bij op de balans, en de...

$20K Bitcoin may return, says analyst as US unemployment hits 54-year low

Bitcoin (BTC) fell prior to the Feb. 3 Wall Street open as fresh United States economic data came in "hot hot hot." BTC/USD 1-hour candle chart...

Beste exchanges

Koop je crypto bij Bitvavo