Polkadot Treasury and Arbitrum DAO Announce Major Funding Initiatives
By: Eliza Bennet
The crypto ecosystem is witnessing significant funding movements as Polkadot Treasury and Arbitrum DAO have announced large-scale financial support initiatives aimed at bolstering their respective ecosystems.
Polkadot Treasury Allocates $14.4 Million to Hydration
Polkadot Treasury has allocated 2 million DOT, valued at $14.4 million, to enhance the liquidity of the DeFi project Hydration. This initiative, revealed in a statement on June 10, aims to improve the liquidity and efficiency of Hydration’s single-sided liquidity provisioning platform, Omnipool. The funding aligns with Polkadot's ongoing efforts to expand the network's adoption globally. In recent weeks, Polkadot’s Web 3 Foundation has also funded projects like PolkaPort East and Accelerate Polkadot.
The funding will be executed in two phases. The first phase will disburse 1 million DOT to attract new liquidity into the Polkadot ecosystem, offering substantial rewards for liquidity providers (LPs) with an annual percentage yield (APY) exceeding 200%. The second phase will allocate another 1 million DOT to support Hydration Omnipool, enhancing the native liquidity layer for the Polkadot 2.0 ecosystem.
Jakub Gregus, co-founder of Hydration, emphasized the importance of this funding, stating that it is crucial for the health and growth of the Polkadot ecosystem. This financial boost follows the rebranding of the project from HydraDX to Hydration, and it appears to be a significant step towards advancing liquidity management on the Polkadot network.
Arbitrum DAO Agrees to Distribute $216 Million in Funding
The Arbitrum Foundation, a Decentralized Autonomous Organization (DAO), has approved the allocation of $216 million to develop projects within its gaming ecosystem. The initiative was endorsed following a formal voting process among community members, with the majority supporting the proposal.
The Gaming Catalyst Program (GCP) spearheads this initiative, aimed at expanding awareness and adoption of Arbitrum, Orbit, and Stylus within the gaming community. The program intends to capitalize on the growing gaming market, projected to reach $500 billion by 2030, by integrating blockchain technology with gaming to attract both developers and players.
Over the next three years, the Arbitrum Foundation plans to recruit top-tier developers to build high-quality games that will engage the community. The foundation recognized its previous shortcomings in matching competitors like Immutable X and Solana but lauded its success in the decentralized finance (DeFi) sector. The Gaming Catalyst Program is expected to provide a dedicated team and resources to support developers, including mentorship and funding.
These funding initiatives by Polkadot and Arbitrum reflect a strong commitment to advancing their ecosystems through strategic investments and community engagement. Both organizations aim to set new standards in their respective sectors, ensuring long-term growth and development.
