- The financial giant Grayscale Investments has committed to financially support the development of the cryptocurrency Ethereum Classic for two more years.
- To date, Grayscale has donated more than USD 1.1 million to the Ethereum Classic Foundation.
On Wednesday, the asset manager announced to the ECC organisation (Ethereum Classic Cooperative) that he will donate one third of the management fees from his Grayscale Ethereum Classic Trust every year until 2021. Grayscale has already donated one third of the management fees every quarter since 2017, bringing the total amount of donations to date to more than $1.1 million.
Last year alone, donations totaling $338,000 were collected. The funds are made available to the developers of Ethereum Classic to ensure and further advance the progress of the ecosystem. Bob Summerwill, Managing Director of ECC, said the financial contribution will accelerate the development of ETC:
It is a big vote of confidence which we deeply appreciate. This funding allows us to continue our support of the ETC protocol and ecosystem. We will provide grants for key projects, as we have through 2018 and 2019.
Grayscale’s Ethereum Classic Trust is one of the largest investors in Ethereum Classic according to the ETC block explorer data and is estimated to hold approximately 14% of the total ETC offering. Grayscale also manages approximately $80 million in its ETC fund, spread across nearly 10 million shares, each valued at 0.92 ETC. This means that the value of each share at the time of writing is just under USD 8.19. Grayscale Investments is a subsidiary of the Digital Currency Group, which also operates the news portal CoinDesk.
EEC was founded in 2017 and is a public non-profit organization that directly funds development projects on the Ethereum Protocol, infrastructure and related applications through donations. For this year, the EEC plans to make the internal management structure as well as the accounting more sustainable. In addition, a quarterly financial report will be published starting this year to further promote transparency in the organisation’s work.
Ethereum Classic to become more interoperable
Vitalik Buterin recently announced that a technical fusion of Ethereum 2.0 and Ethereum Classic would be possible. However, this suggestion did not meet with much enthusiasm in the community, as the developers of both cryptocurrencies have their own plans and goals, which differ significantly. Most recently, Ethereum Classic successfully activated the hard fork Agharta.
Agharta has integrated the Constantinople and St. Petersburg upgrade opcodes into the mainnet of Ethereum Classic. The update thus pursues the same goal as the previous Atlantis update, which was implemented in September 2019 to increase interoperability between Ethereum Classic and Ethereum.
ETC’s price follows the current market trend and has seen a price decline of – 4.28% to USD 8.91.