SSV launches $50M ecosystem fund to support ETH staking tech

Validator infrastructure developer ssv.network has launched a caller ecosystem money to enactment Ethereum proof-of-stake decentralization — a determination that the institution said would beforehand innovation astir Ether (ETH) staking technologies. 

The ecosystem fund, valued astatine $50 million, volition enactment projects gathering applications utilizing distributed validator technology, oregon DVT, the institution announced connected Jan. 17. The money is solely dedicated to backing DVT usage cases successful enactment of Ethereum’s semipermanent decentralization efforts.

DVT is an open-source protocol that allows a validator’s responsibilities to beryllium distributed crossed aggregate nodes. The protocol was a cardinal constituent of Ethereum co-founder Vitalik Buterin’s roadmap for Eth 2.0, arsenic much DVT implementation means much decentralization.

SSV noted that respective task superior investors — including Digital Currency Group, HashKey, NGC, Everstake, GSR and SevenX — person promoted Ethereum’s usage of DVT.

According to data, the blockchain manufacture seems to beryllium connected the way of stabilization. https://t.co/GJIDiZAFe0

— Cointelegraph (@Cointelegraph) January 12, 2023

SSV said it had already pledged $3 cardinal toward developer grants and that $1.2 cardinal has been allocated to implicit 20 proof-of-stake projects, including Blockscape, ANKR and Moonstake.

According to Alon Muroch, the halfway improvement pb astatine SSV, Ethereum is “currently secured by a tiny radical of companies, which, erstwhile enactment together, power the full blockchain.” He said the purpose of DVT exertion “is to administer Ethereum’s information by offering speedy and casual entree to an open-source, nationalist bully which volition wholly alteration the mode staking is operated today.”

Related: ETH staking connected apical exchanges contributes to Ethereum censorship: Data

Ethereum’s modulation to proof-of-stake is simply a multi-phased process designed to heighten the network’s scalability, information and decentralization. The modulation introduced ETH staking, wherever users actively enactment successful validating transactions. The minimum staking threshold for becoming a validator connected Ethereum is 32 ETH.

Did you cognize determination are antithetic types of statement mechanisms successful blockchain? Read astir the pros and cons of proof-of-stake and proof-of-work: https://t.co/jqlPEENlRw

— Cointelegraph (@Cointelegraph) January 16, 2023

As of aboriginal December, it was reported that request for liquid ETH staking was connected the rise. Blockchain analytics steadfast Nansen referred to staked ETH arsenic the “first yield-bearing instrumentality to scope important standard successful DeFi."