- ETH proof-of-stake decentralization is supported by funds from SSV.network
- $50 million will be allocated to projects utilizing distributed validator technology (DVT)
- Ethereum’s long-term decentralization initiatives will be supported by the fund exclusively
SSV.network, a developer of validator infrastructure, has announced a new ecosystem fund to assist Ethereum proof-of-stake decentralization, a move the firm claims will encourage innovation in Ethereum staking technologies.
The $50 million ecosystem fund will promote application development projects utilizing distributed validator technology (DVT). The fund is intended exclusively to support DVT use cases in favor of Ethereum’s long-term decentralization initiatives.
DVT is an open-source protocol that permits the distribution of a validator’s tasks among numerous nodes. Ethereum co-founder Vitalik Buterin’s roadmap for Eth 2.0 included the protocol as a crucial component.
Alon Muroch, technical lead, SSV Network, explained in a note to a media network:
It’s important because DVT is becoming a major focus for Ethereum. More funds, companies, DAOs are getting involved. It’s going to be as widespread as layer 2s, and Maximal Extractable Value after the tech hits the Ethereum mainnet in 2023. The funds involved are at the ground level supporting this change.
Meanwhile, SSV stated that it has already allocated $1.2 million to over 20 proof-of-stake initiatives, including ANKR and Moonstake.
SSV reported that a number of venture capitalists, such as Digital Currency Group, HashKey, GSR, and SevenX, have advocated for Ethereum’s usage of DVT.
In other news, SHIB may hit the skyrocketing price of $0.00004 before the second quarter of 2023.
