- VeChain Foundation has launched a $1 million grant to boost its enterprise NFT (eNFT) ecosystem.
- The blockchain project is seeking to challenge Ethereum for the NFT and DeFi supremacy, luring developers with incentives and lower gas fees.
In an official announcement on April 28, the company revealed that the grants are targeted at developers and projects adjudged to have potential value to the ecosystem. To this end, the grant will provide resources for them to build on the VeChainThor blockchain.
— VeChain Foundation (@vechainofficial) April 28, 2021
Growing VeChain via developer incentives
Currently, VeChain’s market cap stands at about $12.3 billion. This is significantly behind DeFi ecosystem leader Ethereum, which currently boasts a market cap of over $318 billion. However, according to data from Nomics, VeChain has seen rapid growth over the past year as it seeks to someday overhaul the 800-pound Ethereum gorilla.
While Ethereum continues to dominate the NFT and wider DeFi space, the VeChain Foundation believes that VeChainThor offers significant upside for developers. This is mainly down to its dual token structure which enables it to offer low and stable gas prices for users, in stark contrast to the Ethereum blockchain.
To this end, the company believes that introducing incentives to attract developers and projects onto VeChainThor is the first part of building an Enterprise NFT (eNFT) system. When fully active, this eNFT system, the company says, will stand at the forefront of blockchain mass adoption. An excerpt from the grant program announcement reads:
To build such an ecosystem, we need as many applications and projects as we can get, including NFT marketplaces, token bridges, DeFi applications, open source tools and more. The compounding effect of more tools will exponentially increase the development progress of the eNFT ecosystem.
VeChain Foundation says it has committed $1 million to its grant program with the express intention of incentivizing developers and projects to choose VeChainThor over competing blockchains. In a nod to its growing rivalry with Ethereum, the company also stressed that VeChainThor’s Base Gas Price was recently reduced specifically for the benefit of developers.
Specifics of the grant program
According to the foundation, developers applying to the fund may indicate their interest in any topic of their choice. An excerpt from the announcement reads:
Developers may navigate among any topic they like, including, but not limited to, NFT marketplaces, NFT-enabled games/ applications, enterprise-level NFT solutions, DeFi applications, token bridges, cross-chain tools, research projects and also other projects that will bring value to the ecosystem (dev tools and libraries etc).
A maximum of $30,000 may be allocated to fund each successful application. The application process itself will be tracked via Github with a publicly visible and transparent evaluation and selection process. Successful applicants holding VeChain X-Nodes will also get a 50 percent bonus in addition to their funding amounts.