Tendermint says that the fund will be the most significant investment vehicle for the Cosmos ecosystem.
As Cosmos enters its following chapter, among the leading firms behind the interoperability system is rolling out a $20 million fund to encourage promising projects.
“We’re trying to lay the bases for decentralized networks to flourish within Cosmos,” Tendermint CEO Peng Zhong told CoinDesk in a meeting. “Thus, just providing an additional source of liquidity for people who want to build on our pile.”
The fund’s announcement is timed to the activation of Cosmos’ inter-blockchain communicating protocol (IBC), a major landmark that went live earlier today. IBC enables distinct blockchains constructed on Tendermint Core to work together. The cross-chain flow of tokens could be a catalytic step for creating financial products in the Cosmos system more broadly employed.
“We’re likely to identify promising jobs, building using Cosmos technology and supply venture capital to accelerate their growth.”
The fund is supposed to complement other efforts from the ecosystem, such as the $10 million Terraform Capital fund declared in February. However, where Terraform concentrates on decentralized fund (DeFi) on just the Terra blockchain, Tendermint Ventures seeks wider reach.
“In the long run, we’re focusing on developing a very robust DeFi ecosystem in Cosmos,” explained Jin Kwon, the Tendermint chief of staff leading the new enterprise fund. “Our aim at the end of the afternoon is that these projects that we earn is going to be complementary to each other. So one may do something in 1 aspect of DeFi and yet another job is to leverage that project.”
Really, Terra, that recently launched a high-yield savings account known as Anchor, is one of the early investments by Tendermint Ventures. So far, the fund has also invested in Regen, IRIS, B-Harvest and Tgrade.
