Binance, the biggest cryptocurrency exchange, has announced the creation of a $1B fund to speed up the Binance Smart Chain (BSC) adoption.
BSC was introduced to the market in September last year as a launchpad to enable programmers to develop decentralized dApps that are compatible with the Ethereum blockchain through the Ethereum Virtual Machine.
Reports from the announcement state that Binance Smart Chain has proven to be an excellent blockchain for starting new dApps. It also disclosed that there are over 900 dApps in the BSC ecosystem with over one million active users.
The fund distribution
The one billion growth fund will be allocated to the following four groups, each aiming at different goals, according to a statement on Binance’s website.
- Liquidity Incentive Program: To encourage participation by traditional financial markets and digital currency, the Liquidity Incentive Program will receive $100 million.
- Builder Incubation program: This will receive $300 million to build 100 innovative dApps, boost infrastructure providers that leverage BSC, and assist BSC dApps in offering attractive bug bounties to enhance their security.
- Innovation and Incubation Program: The Innovation and Incubation program will get $500 million to speed up mainstream adoption and disrupt financial infrastructures. It will be used to grow virtual reality, decentralized computing, metaverse, gaming, blockchain-based financial services, and artificial intelligence.
- Talent Development: Binance will award a $100 million grant to this program to develop the next generation of crypto native experts who will spread the adoption of blockchain across multiple industries.
What is the importance of growth funds?
In September last year, Binance launched a $100 million growth fund. The launch has earned BSC significant traction as one of the most successful Ethereum killers.
The announcement stated that the one-billion fund would deliver a robust ecosystem for cross and multi chains to collaborate and work seamlessly to enhance cost-efficiency. Further, there will be an introduction of social networking, a decentralized world of gaming, financial services, and much more to the public to increase awareness on WEB 3.0.
Regulators are monitoring Binance to determine whether it is involved in tax evasion, money laundering, and insider trading.
The CFTC is investigating Binance for allegedly using customer data to generate profits from trades.