In an announcement on Tuesday, Binance disclosed the launch of a $1 billion fund to drive the growth of its exchange ecosystem, popularly known as the Binance Smart Chain (BSC).
According to Binance, the initiative would cover four programs and be funded by the $1 billion fund. The program would include talent development, liquidity incentive, builder, and investment and incubation programs.
From the said fund, about $100 million would go into the talent development program. Under this program, it aims to achieve mentorship for developer’s communities, provision of academic scholarships to institutions, and support development and research activities that are crypto and blockchain-centric.
Another $100 million would fund the liquidity incentive program. The program gives liquidity providers supporting the growth of the burgeoning decentralized finance (DeFi) based on the BSC the opportunity to receive rewards.
The builder’s program would get three times the amount earmarked for the first two programs —$300 million. The money would be shared in the divisions of the program with the hackathon, bug bounty and development program getting $100 million while the remaining would be used for incubating 100 decentralized apps building on the BSC ecosystem.
Lastly, the remaining $500 million would go into the investment and incubation program. This program aims to invest in startups, including decentralized computing, gaming, metaverse, virtual reality, artificial intelligence, and blockchain-based financial services.
While speaking on the fund, Binance’ss CEO, Changpeng Zhao, said, “BSC’s growth has attracted 100M+ DeFi users with just an initial funding of $100 million” CZ continued that “With the new contribution of $1B, it can disrupt traditional finance and accelerate global mass adoption of digital assets to become the first-ever blockchain ecosystem with one billion users.”