The Tendermint project announced the launch of a $20 million fund to support promising Cosmos-based projects built on the interoperability-focused blockchain. The news is reported by CoinDesk.
“We have created a funding source for teams aiming to build on our stack. Our goal is to lay the groundwork for decentralized networks as a component of the Cosmos ecosystem,” Tendermint’s CEO Peng Zhong said.
The launch of the fund coincides with the activation of the IBC protocol (Inter-Blockchain Communication).
It enables separate chains built on the Tendermint core to operate together. IBC can be used to transfer both fungible (cross-chain payments) and non-fungible tokens between blockchains.
On the basis of the IBC protocol, one can create multi-chain contracts and address blockchain scalability issues through sharding.
Tendermint Ventures, tokenised in ATOM and IRIS, will become the Cosmos ecosystem’s largest fund. It will complement Terraform Capital’s $10 million fund launched in February, which focuses on supporting DeFi protocols built on the Terra stablecoin.
“We aim for projects to complement each other. For instance, one may work in a given DeFi aspect, while another would integrate these developments,” said a Tendermint Ventures administrator.
In January, Terraform Labs attracted $25 million to expand the asset’s use in the DeFi sector.
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