Crypto exchange giant Binance has demonstrated once more why it’s amongst the giants of the industry, the company has announced the launch of a $1 billion “Growth Fund”. Targeted at their Binance Smart Chain (BSC), the fund will aid this ecosystem to “push the adoption” of the blockchain industry.
Launch in 2020, Binance Smart Chain became of one Ethereum’s most important rivals. During its period of biggest congestion, Ethereum saw a number of its users migrating to BSC due to its fast transactions, low fees, and product offering.
At the time, as the recent announcement highlighted, BSC was rollover with a $100 million “Accelerator Fund”. Its objective was to support developers working on this ecosystem and provide a “unique incentive to boost their growth”.
This new initiative aims at accelerating the efforts to make BSC the prime choice for users looking for a cost-efficient alternative to access Web 3.0 services and products. The final objective is “for the masses to build powerful financial infrastructures”.
In that sense, Binance revealed their plans to expand their products into some of the major trends of the crypto space. The company claimed:
We aim to introduce the decentralized world of gaming, social networking, financial service, and more to the general masses to spread awareness around WEB 3.0
Binance claimed the following on the development of their BSC ecosystem and its potential to continue to be one of the top competitors in the multi-blockchain, the exchange said the following in their announcement:
BSC is becoming one of the best blockchains to pilot and start new dApps. Its thriving community has more than 1m daily active users spread across more than 900 dApps, making BSC also one of the biggest crypto ecosystems in general.
Binance Smart Chain And Their $1 Billion Fund Categories
As the company clarified, their “Growth Fund” will be divided into 4 different groups. The first and second will be comprised of $100 million each and will be used for talent development and a liquidity incentive program.
Furthermore, the talent development program will be oriented toward supporting developer communities, educating new crypto investors, and granting academic scholarships to universities, the exchange said. This group will mainly support educational and research and development (R&D) initiatives.
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On the other hand, the $100 million liquidity incentive program will create initiatives to “encourage participation from traditional financial markets and crypto”. Thus, some protocols will receive liquidity rewards in relation to their fundamentals. Binance said:
This will be targeted to developing compliant relationships between investors and evolving emerging digital asset markets.
The other two groups will have $800 million destined for a builder program and an investment and incubation program. The latter will aid the BSC to “accelerate mainstream adoption”, while the former will be used to
(…) expand MVB and incubate 100 innovative dApps, boost infrastructure providers building on top of BSC, and help BSC dApps provide attractive bug bounties to bolster their security.
As Bitcoinist reported, Binance has been facing a lot of scrutiny from international regulators. The exchange has been taking some measures to mitigate the pressure.
In addition to reducing their derivatives leverage offered, the exchange has extended incentives for new users to complete their Know Your Customer (KYC) validation process.
At the time of writing, BNB trades at $436 with a 4.9% profit in the daily chart, most likely as a result of the “Growth Fund” announcement.