Ethereum Foundation Sets Aside $19M for ‘Building the Ethereum of Tomorrow’

The Ethereum Foundation specified on May 21 how an approximately $30 million fund will be spent by the organization on strategic projects within the ethereum ecosystem.

The Foundation stated that $19 million has been set aside over the next 12 months for “building the ethereum of tomorrow.”

This involves an impressive scaling upgrade called ethereum 2.0 and “layer 2” scaling projects like Plasma, along with several research and development projects.

Another $8 million is allocated for the next 12 months for funding the present ethereum mainnet through initiatives like ethereum 1x.

“Ethereum is used in production today to secure billions of dollars of assets and as a base layer for many hundreds of live applications. We believe that it is vital to continue supporting these efforts to ensure that ‘Ethereum 1.0’ continues to be the world’s dominant smart-contract platform,” the Foundation wrote in a blog post published May 21.

The final $3 million is allocated for developer growth and awareness. According to the post, the funding will be used to support developer education and on-boarding, “regional ethereum community organizations,” annual ethereum conference Devcon, and the like.

The Ethereum Foundation reportedly disbursed a total of $27 million monetary grants over the past year to 90 different projects. The largest number of grants went towards ethereum projects centered on scalability, with 23 grants in total.

The Foundation holds an estimate of 0.6 percent of all ether, amounting to around $160 million, along with some reserves of cash. The blog post stated that resources “are intended to decrease over time” and other third-party actors like MolochDAO are encouraged to participate in supporting advancements in the ethereum ecosystem.

“Efforts like these give us better leverage from our existing resources, and help build a sustainable path for funding vital projects far into the future,” the blog post specified.

Ethereum Foundation executive director Aya Miyaguchi commented:

“I understand that many look to the [Ethereum] Foundation as an important voice even if our intention is to empower other important contributors to ethereum…We’ll continue to release many different types of updates, including the latest from more supported teams very soon.”