$150 Million Fund Established to Bolster Terra Ecosystem
- A new $150 million ecosystem fund has been established for projects building on the Terra blockchain
- The fund is backed by prominent crypto VCs such as Arrington Capital and Galaxy Digital
- Terra is a blockchain platform that features stablecoins, synthetic assets and payments apps
Terra ecosystem to benefit from $150 million fund
A group of prominent venture capital firms has committed $150 million towards investing in the Terra ecosystem, including names such as Arrington Capital, Galaxy Digital, Pantera Capital and others. The capital is meant to support the Terra Ecosystem Fund, where projects building protocols and applications for the Terra blockchain will be able to apply for funding.
According to a report from TechCrunch, Terraform Labs (the creators of Terra) say that the deployment of the $150 million in capital is planned across several years.
Terraform Labs’ head of communications Brian Curran had this to say about the establishment of the Terra Ecosystem Fund:
“The onset of dozens of projects currently building or on the cusp of releasing products on Terra has induced the need to bolster the ecosystem’s capital and resource base to support its exponential growth effectively. Terra’s Ecosystem Fund is the culmination of TFL’s efforts to guide the development of Terra towards a brighter future, offering newcomers, curious observers, and established builders the opportunity to create something extraordinary.”
The Terra blockchain features several algorithmic stablecoins, with the largest being the USD-pegged UST (market capitalization of over $2 billion). The platform is also the home of Mirror Protocol, which allows for the creation of synthetic assets that track the price of other assets, for example crypto assets that aren’t native to the Terra blockchain, or even stocks and ETFs.
Another aspect of the Terra blockchain is payments apps, which are powered by the previously mentioned stablecoins. An example of a Terra-powered app is Chai, a mobile payments app focused on the South Korea market.
LUNA, the native token of the Terra protocol, is currently the 31st largest crypto asset on the market, thanks to its market cap of $2.53 billion.
Despite the recent poor performance displayed by Bitcoin and the cryptocurrency market more broadly, there is still plenty of capital flowing into the blockchain space to fund developers. Arrington Capital, one of the backers of the Terra Ecosystem Fund, launched a $100 million ecosystem fund for the Algorand blockchain in June. In May, DFINITY announced a CHF 200 million ($220 million) ecosystem fund for the Internet Computer Protocol.
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