Asia-based blockchain incubator Master Ventures intends to fund the bids of crypto projects in the upcoming Parachain auctions
Blockchain incubator and private venture capital firm Master Ventures yesterday announced the launch of a new $ 30 million venture capital fund focused on developing the Polkadot and Kusama ecosystems.
Polkadot’s innovative architecture comprises a network of heterogeneous blockchains called parachains. Each parachain can host a different project with its own tokens and optimized functions for specific use cases.
Kusama has the same blockchain architecture as Polkadot and acts as “canary network“Provides a testing ground for developers who want to implement on Polkadot.
In the next 18 months, Polkadot and Kusama will auction more than 50 Parachain slots. The projects offer the amount of DOT or KSM they are willing to lock in for the duration of the lease, with parachains given to the highest bidder.
Projects like Moonbeam and Acala have already announced that they will finance their polkadot bids (as well as the Kusama bids of their sister projects Moonriver and Karura) via the integrated crowdloan function using crowdfunding. This allows everyone to contribute to the offers by locking their own DOT (or KSM) in return for rewards in the form of tokens of the projects in the event of success.
The Master Ventures Fund will be used to fund the parachain bids of Tier 1 blockchain projects, as well as to provide early stage investments for the most promising projects in the Polkadot and Kusama ecosystems.
Master Ventures Founder and CEO Kyle Chasse stated: “… we have gained amazing proprietary knowledge and insights into the current progress and future development of both projects and believe that, due to its cross-chain functionality, ease of development and deployment, Polkadot will be one of the clearly long-term successful blockchains and ecosystems and the strength of its Development community. “
Parachain auctions are first launched on Kusama, which seems to be increasing the demand for KSM. The token has led the market rally after the May crash, with KSM price up 50% since the beginning of this week.