It has been reported that the fund will be used to provide cash grants and direct support to fintech and blockchain entrepreneurs. Nervos is looking to back DeFi teams building trustless decentralized exchanges, synthetic asset solutions, identity protocols, lending solutions, prioritizing projects striving for interoperability across multiple blockchain networks.
However, grant applicants building on the Nervous blockchain will also be eligible to receive hands-on support from Nervos’ core developer team.
A new $5 million fund to help build decentralized projects is launching from the @NervosNetwork. Nervos has received increased attention lately, having integrated with China’s Blockchain Service Network. https://t.co/50uqP1PKDI — Cointelegraph (@Cointelegraph) February 11, 2021
The report said that Nervos described the fund as a response to “backlash and controversy” regarding the centralized finance sector. In recent weeks, a retail-driven short-squeeze targeting the stock of struggling game retailer GameStop saw Robinhood and other mainstream trading platforms suspend trade in the shares.
Kevin Wang, the co-founder of Nervos, said:
“People are becoming increasingly interested in blockchain and crypto because of the barriers in traditional finance, but users need to be able to easily transact on the blockchain for the space to grow and scale.”
Thus, Nervos also emphasized the “antiquated” systems underpinning legacy trading systems, such as centralized governance and inefficient settlement processes.