From the outside looking in, there's no denying that the Web3 ecosystem has evolved immensely over the last couple of years. To this point, a recent study suggests that the sector is set to achieve a valuation of $177.58 billion by 2033—with this growth largely being driven by a vision of decentralization, transparency, and community ownership shared by crypto enthusiasts globally.
Amidst this rapidly evolving paradigm, the concept of grants and external investments have emerged as major catalysts for Web3's growth, propelling innovation and fostering the growth of cutting-edge projects. Moreover, the interconnected nature of Web3 has necessitated the need for a collaborative approach, one where different projects support one another through strategic investments and grants. This symbiotic relationship can not only strengthen individual endeavors but also create a ripple effect, elevating the entire ecosystem and paving the way for major breakthroughs.
Fostering Collaboration and Growth the Right Way
In recent years, a growing number of crypto entities have recognized the importance of supporting and nurturing the broader crypto ecosystem they are reliant on. This recognition has manifested in the form of specialized programs designed to empower builders, incentivize innovation, and foster a collaborative environment.
One notable example is the Optimism Collective Grants Program, which supports projects aligned with Optimism's mission of expanding the Ethereum layer-2 (L2) ecosystem. The program encompasses grants for builders, growth experiments, and strategic partnerships, as well as retroactive grants for impactful completed work. Most recently, the Optimism team announced that it had set aside $3 billion worth of its native OP token for funding its public goods, including three additional funding rounds.
Another similar initiative is the Web3 Foundation's $45 Million Decentralized Futures Program, which supports projects within the Polkadot ecosystem. Launched in November 2023, this program allocates $45 million in funding through 2024 to teams and individuals building ambitious decentralized applications (dApps), infrastructure, and community initiatives.
However, at the forefront of this transformative movement stands the Metis Ecosystem Development Fund (MetisEDF), a fund dedicated to accelerating the adoption of the Metis Network, a permissionless Ethereum Layer 2 network powering the next generation of decentralized applications.
It serves as a catalyst for growth, supporting a wide range of initiatives, including grants for new project deployments, product development for existing dApps, Builder Mining rewards, sequencer mining, and more. The distribution of the MetisEDF is strategically divided into two primary allocations: Sequencer Mining and Ecosystem Grants.
Sequencer Mining—allocated 3,000,000 METIS (65.4% of the fund)—ensures optimal network functionality and decentralization, drives demand for sequencer slots, and enhances liquidity depth and participation rates until self-sustainability is reached. On the other hand, the Ecosystem Grants allocation—consisting of 1,600,000 METIS (34.6% of the fund—is dedicated toward ecosystem funding and is set to be distributed over the next ten years.
The use cases for these grants include Builder Mining Rewards (BMR), product development, protocol deployments, liquidity at product launches, small audits, and liquidity mining initiatives. In addition to the MetisEDF, Metis has also committed 250,000 tokens to additional grants that are set to be disseminated later this year.
One of the most notable initiatives under the MetisEDF is the Metis Liquid Staking Blitz (LSB) module. The program aims to accelerate the growth of Liquid Staking Derivatives (LSDs) and LSD-focused products on the Metis Layer 2 network. With a 20% Mining Rewards Rate (MRR) incentive for the first 12 months, a limited number of LSD applicants can win the right to be paired with a Decentralized Sequencer Node, opening up liquid staking to a pool of up to 100,000 METIS tokens per node.
A Peek into the Future
As the Web3 ecosystem continues to evolve and mature, the importance of institutional investments and grants cannot be overstated since these initiatives stand to not only fuel innovation but also foster collaboration—enabling projects to support and uplift one another. Therefore, as the industry continues to garner mainstream traction, more and more Web3 entities need to do their bit in terms of helping promising endeavors come to life.
By embracing this ethos of collaboration and investment, it appears possible to collectively shape the future of crypto and blockchain tech, ushering in a new era of decentralized digital experiences that empower users, foster innovation, and revolutionize the way we interact with the burgeoning digital landscape.
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