Open source and decentralized protocol ssv.network The DAO has launched a $50 million ecosystem fund dedicated to supporting the development of applications based on Distributed Verification Technology (“DVT”).
According to a press release shared with encrypted potatoesThe project has secured funds from various investors in the industry, including DCG, OKX, HashKey, NGC, Everstake, HackVC, GSR, Chorus.One SevenX, and 1kx.
ssv.network noted that the fund is the first dedicated solely to DVT use cases, adding that its primary purpose is to “promote DVT as a critical infrastructure for Ethereum.”
What is a DVT?
DVT is one of the most important developments in the Ethereum roadmap. DVT is a rudimentary infrastructure that enables checker Sharing keys between untrusted parties in the Ethereum network. The technology relies on a network of nodes that operate under consensus to help capture ETH rewards strikers.
For larger validators, DVT provides high availability and reduces infrastructure costs while ensuring a similar level of protection that a larger validator might have for smaller validators.
Commenting on the development, Alon Muroch, Core Contributor at ssv.network said:
“DVT’s goal is to distribute the security of Ethereum by providing fast and easy access to an open source, public facility that will completely change the way staking works today.”
Muroch added that more than 20 companies are already building on ssv.network’s DVT protocol, and that number is expected to grow with the launch of the $50 million ecosystem fund.
The amount of ETH deposited exceeds 16 million
The latest development comes as the Ethereum network has reached a new stage. According to information from etherscanThe amount of cryptocurrency (ETH) has grown by 18% to over 16 million since the network moved to a proof-of-stake (PoS) network in 2022. The amount of cryptocurrency represents over 13.28% of the total ETH supply, valued at $22.42 billion.
However, the majority of the ETH stack is concentrated in the hands of a few players, leaving the Ethereum network in demand through decentralization factors such as DVT.
SSV Network DAO’s $50 million post-launch ecosystem fund debuts on CryptoPotato.