Asia-based blockchain incubator Master Ventures intends to fund 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 ecosystem.
The innovative architecture of Polkadot consists of a network of heterogeneous blockchains, so-called parachains. Each parachain can host a different project, with its own tokens and optimized features for specific use cases.
Kusama has the same blockchain architecture as Polkadot and acts as a” Canarian network ” that provides a testing environment for developers who want to implement on Polkadot.
Over 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 up for the duration of the contract, with the parachains awarded to the highest bidders.
Projects such as Moonbeam and Acala have already announced that they will crowdfund their Polkadot bids (as well as the Kusama bids of their sister projects Moonriver and Karura, respectively) via the built-in crowdloan function. Thus, everyone can participate in the bids by blocking their own DOT (or KSM) and for this, in case of success, receive a reward in the form of tokens of the project.
Master Ventures ‘ fund will be used to fund the parachain bids of Tier 1 blockchain projects, as well as early-stage investments in the most promising projects in the Polkadot and Kusama ecosystem.
Kyle Chasse, founder and managing director of Master Ventures, explained: „… we have gained amazing in-house knowledge and insights into the current progress and future development of both projects and believe that Polkadot will be one of the clear long-term winners among blockchains and ecosystems due to its cross-chain functionality, ease of development and deployment, and the strength of its developer community.“
The Parachain auctions are first introduced on Kusama, which seems to increase the demand for KSM. The token has led the market recovery after the May crash, with the KSM price up 50% since the beginning of this week.