¡¡¡¡Master Ventures has announced a $30 million fund to back project on Polkadot and Kusama
¡¡¡¡The company will be helping projects win parachain slot auctions
¡¡¡¡Parachain functionality is not yet live on Polkadot, but it is rolling out on the more experimental Kusama platform
¡¡¡¡Venture studio Master Ventures has announced a $30 million venture capital fund to invest in projects building in the Polkadot and Kusama ecosystem. The company aims to help projects win auctions for parachain slots on Polkadot.
¡¡¡¡The Polkadot project has the goal of letting different blockchains interoperate with each other while still maintaining a high degree of security. Parachains play a key role in Polkadot¡¯s design ¨C they are blockchains with specialized functionality that connect to the Polkadot Relay Chain and benefit from its security. However, the amount of parachains that Polkadot can support is limited, so projects that would like to lease a parachain slot need to win an auction.
¡¡¡¡In order to be more competitive in the auction system, projects can borrow DOT from their backers through ¡°crowdloans¡±. The loaned DOT is returned once the parachain lease expires, but users will typically also receive some of the project¡¯s tokens as compensation for lending out their DOT. In this way, the crowdloan system has some parallels with popular token sale models such as ICOs and IDOs.
¡¡¡¡Polkadot¡¯s mainnet was launched in May 2020, and DOT transaction functionality was enabled in August of the same year. However, parachain functionality is not yet live on the network. It¡¯s currently being rolled out on Kusama, which is designed to be a more experimental counterpart to Polkadot.
¡¡¡¡It is expected that there will be more than 50 parachains live across Polkadot and Kusama in the next 18 months.
¡¡¡¡Master Ventures Investment Management managing partner Orion Depp commented on the opportunities in Polkadot¡¯s parachain system:
¡¡¡¡¡°Parachain winners such as Acala, Phala, & Litentry, could represent the next Compound, Maker, and Zcash, on Polkadot’s next generation platform. In addition to capturing significant upside opportunity via funding Parachain bids, we intend to fund leading early-stage investments in the DOT ecosystem and believe we can add significant strategic value to these projects.¡±
¡¡¡¡Meanwhile, Master Ventures CEO Kyle Chasse said he believes that Polkadot will succeed over the long term thanks to its strong developer community, developer-friendly features and interoperability.