Terraform Labs Creates $150M Fund to Advance Inter-blockchain Communication
Blockchain communities may never get along on Crypto Twitter, but that doesn’t mean the blockchains themselves can’t. Striving towards a world where all blockchains can seamlessly communicate, Terraform Labs has put forward $150M worth of its LUNA tokens. They are calling the fund Project Dawn. Terraform Labs (TFL) is behind the Terra blockchain, which makes…
By: Brady Dale •Byte
Blockchain communities may never get along on Crypto Twitter, but that doesn’t mean the blockchains themselves can’t.
Striving towards a world where all blockchains can seamlessly communicate, Terraform Labs has put forward $150M worth of its LUNA tokens. They are calling the fund Project Dawn.
Terraform Labs (TFL) is behind the Terra blockchain, which makes stablecoins that track the price of various fiat currencies. Its blockchain was built with Tendermint, the native architecture for the Cosmos ecosystem of blockchains. Cosmos was created so that each application could have its own blockchain that easily communicates with others. Taking that a step further, Cosmos was also created to facilitate communication across all blockchains, Tendermint and otherwise.
“At every bull run, the crypto industry relearns an uncomfortable truth: a single global computer shared by all apps is untenable,” Do Kwon, a co-founder of Terraform Labs, told The Defiant over Telegram.
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Scaling up Cosmos, battle hardening it and improving its tooling can make it easier, Kwon believes, for more applications to exist on their own blockchain so that the overall ecosystem of blockchains won’t get bogged down every time something exciting happens.
Funded in 2017 by an initial coin offering, the full vision of Cosmos was realized when inter-blockchain communication went live on Mar. 29. Nevertheless, Kwon has seen buzzy launches choke his own chain, and so TFL has committed to help everyone’s infrastructure handle a surge in traffic.
The first investment Project Dawn will make will be to create an internal team at TFL tasked with contributing to the Cosmos ecosystem, according to the fund’s blog post.
“We expect this team to be one of the major contributors to Cosmos technologies along with the genesis core teams at Tendermint, Interchain Berlin, and the ICF [Interchain Foundation],” the post says.
Then it’s also going to launch partnerships to expand the infrastructure options for Cosmos users, encourage blockchain validators to leave giant cloud-services providers and increase the diversity or oracles, tools that make data outside a blockchain usable on-chain.
This fund is all enabled with 5M of the Terra blockchain’s LUNA token.Terra’s most used token is TerraUSD (UST), which tracks the U.S. dollar. UST has reached a market cap of $2.5B. LUNA is the chain’s governance token, and it has had an extraordinary year, jumping from $0.66 on Jan. 1 to just under $30 as of Thursday afternoon, New York Time.