The purpose of the new fund is to support the growth of NFT, gaming and DeFi projects in Solana and to help former Terra developers get back on their feet after the fall of Terra.
Besides supporting projects in Solana (SOL), the fund will help fund some terra-based projects following the breakdown of that ecosystem last month.
The Solana Foundation trusts that the developers from Terra should not be detained for what occurred on the blockchain network. In an interview conveyed by Bloomberg on June 8, Johnny B. Lee, general manager of the Solana Foundation’s games, said: “The developers did nothing wrong, but they’re left in the lurch.”
The new funding supports Solana’s goal of becoming an ideal blockchain for gaming. Solana Ventures launched a similar 100 million gaming fund last November with crypto exchanges FTX and Lightspeed Ventures. It has $ 150 million in funding with game-centric firm Fort and Griffin Gaming Partners.
South Korea is anticipated to become a hub for NFT and metaverse development in this era, with the government promising $ 187 million to build its own metaverse ecosystem. Korean Metaverse will emphasize primarily the growth of digital content and digital corporations within the country.
The Solana Foundation is banking on interest in gaming finance (GameFi) and decentralized financing (Defi) to increase within the country as companies begin to fight for funding money.
The race to build the best platform is underway, with South Korea already offering NFTs or entree Defi with several platforms, such as the Klaytn Layer-1 blockchain and the Upbit Exchange.
Klaytn’s largest DeFi platform is KlaySwap, which according to DeFi ecosystem tracker DeFi Llama, has a total value lock (TVL) of $ 274 million. Upbit, the country’s largest exchange, has its own NFT marketplace.
But it could be hard for domestic companies to introduce their blockchain-based games in South Korea.
The law currently bans financial rewards for games, including crypto. The law prompted Korean officials to demand last December that Apple and Google remove play-to-earn (P2E) games from their Korean stores.
NFT trading and defi activity has been rising in Solana in recent months. According to the decentralized app (Dapp) tracker DappRadar, Solana’s top NFT marketplace Magic Eden is the second largest globally, with 35,526 daily traders and $ 7.31 million daily volume behind OpenSea.
By issuing funding for ecosystem growth, Solana may be able to address the rare network uncertainty that has ceased since last year.
The SOL price is currently flat, trading at $ 39.05, down 0.5% in the last 24 hours, according to data from CoinGecko.
Leave a Reply