The Ethereum Foundation Allocates $30 Million for Mainnet Development

The Ethereum Foundation announced its plans to spend $30 million on the development of their network in a 3-fold plan. The announcement came in a blog post titled ‘Ethereum Foundation Spring 2019 Update’ in which the foundation laid out their plans for the coming year.

In the announcement, the Ethereum Foundation revealed that out of the $30 million, $19 million would be allocated towards building the “Ethereum of tomorrow” over the course of the next 12 months. What “Ethereum of tomorrow” entails is a scaling upgrade dubbed Ethereum 2.0, “Layer 2” scaling projects such as Plasma, and other research and development projects.

Furthermore, additional $8 million would be spent on maintaining and supporting the current Ethereum mainnet. For this purpose, multiple initiatives such as ‘ETH 1.x’ will be funded through this allocation. In the blog post, the Ethereum Foundation states:

“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 remaining $3 million will be attributed to developer support, growth, and awareness. The money will also be utilized towards developer education and onboarding as well as organizing the yearly Ethereum conference Devcon.

The Ethereum Foundation owns 0.6% out of the entire Ethereum (ETH)trade pie, which roughly equals to $160 million. In the blog post, the Foundation laid out their intentions to drain and decrease these held resources. Furthermore, third-party actors such as MolochDAO are encouraged to play a larger role in supporting development in the Ethereum ecosystem. The blog post talks about how projects like MolochDAO help build a sustainable way to support and fund projects in the long run. It states:

“Encouraging other organizations besides the Foundation to support high-priority projects, and supporting innovative mechanisms for funding, including Gitcoin grants and MolochDAO. 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 $30 million budget was first announced at the ConsenSys’ Ethereal Summit on May 10. Executive director Aya Miyaguchi was quoted saying at the summit that the foundation hopes to titillate academic interest in Ethereum. Looking for the involvement of top tier researchers and developers which would support innovation and development in the ecosystem.

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