Ethereum’s Layer 2 protocol MetisDAO has unveiled The Metis Ecosystem Development Fund, a fund it hopes will accelerate the development and adoption of its blockchain ecosystem.
The developers of MetisDAO, the layer-2 protocol designed to run different projects on Ethereum, ranging from DeFi applications, NFTs, decentralized social networks, Web3 games, and more, recently announced the launch of a new development fund to support the growth of the Metis ecosystem.
“As we enter a new period of innovation and growth for the Metis ecosystem, we believe the launch of Metis EDF will be a major catalyst for true L2 adoption in 2024,” they said the developers of the Layer 2 protocol.
Through this new fund of 4,6 million METIS, or approximately $124 million USD, Metis developers seek to support the development of new projects and decentralized applications on Metis, as well as support Sequencer Mining and grant Builder Mining rewards, with the goal of incentivizing liquidity, activity, and adoption of its ecosystem.
Layer 2: Ethereum Scalability
The disbursements of the The Metis Ecosystem Development Fund, which was introduced on December 18, will begin in the first quarter of 2024, following the launch of the Metis Decentralized Sequencer, scheduled for that date.
The project's crypto community will have decision-making power in terms of how the fund is managed through the METIS token; that is, METIS holders will be able to decide how the resources allocated to the Metis EDF will be distributed through its governance.
MetisDAO developers emphasized the importance of this new development fund to continue building Ethereum's layer 2 and ensuring its scalability, security, and decentralization.
In Q2024 XNUMX, Metis will become the first optimistic rollup to decentralize its sequencer, following the launch of the Metis Decentralized Sequencer, which promises increased scalability, lower costs, and a high level of security on Ethereum.
Substantial growth in 2023
The METIS token is trading at around $27 per unit at the time of writing. While the price of METIS is still a long way from its all-time high, it has recovered significantly this year, growing 53% from the $16 it was trading at in January.
Source: CoinMarketCap
Elena Sinelnikova, co-founder of MetisDAO, recently noted that despite the innovation offered by Layer 2, its use has not become widespread mainly due to the lack of simplicity and decentralization. Sinelnikova commented that Layer 2 has improved the user experience compared to that offered by the first generation of blockchain. However, there is still a need to create solutions that integrate seamlessly into people’s lives. “The Web3 technology stack is still very visible. We need to make it invisible, that’s the goal,” Sinelnikova said.
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