Polygon launches a fund to support Terra projects
Polygon launches a fund to support Terra projects
Blockchain

Polygon launches a fund to support Terra projects

By Vincenzo Cacioppoli - 26 May 2022

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Polygon announces the launch of a multimillion-dollar fund to support projects that will need to migrate from the failed Terra blockchain.

Polygon boosts migration of Terra projects

After the collapse of the Terra ecosystem, which has shaken the crypto markets in recent days, Bitfinex announces via Twitter the birth of a new Terra 2.0 project to replace the one that failed miserably in recent days (the official launch is scheduled for 27 May).

While waiting for this new project, Polygon has announced the launch of a multi-million dollar fund for all projects that were developed on the old Terra blockchain. This was announced by Polygon’s CEO himself, Ryan Watt.

Polygon’s CEO specifically also explained how this new fund would be financed:

“The fund will be financed by the $450 million Polygon had raised previously, its treasury and a $100 million ecosystem fund. I don’t want to put a finite cap on [the fund], because the goal is to make sure we have capital set aside to help all developers who want to come over to Polygon do so”.

The transition of a first project from Terra to Polygon has already taken place

polygon oneplanet
Polygon announces the first collaboration with OnePlanet, an NFT marketplace that was on Earth

Watt spoke of at least 60 projects that would turn to Polygon after the collapse of Terra, which he described as “unfortunate”. The first project to be financed by the new fund is One Planet, an NFT marketplace.

SungMo Park, Head of Business at OnePlanet, said:

“After a turbulent few weeks for the Terra ecosystem, we recognize that our loyal community now needs a reliable, secure new home for their projects. Re-building on Polygon will add tremendous value to the OnePlanet’s partner NFT projects thanks to its stellar team, EVM compatibility, scaling facilities, and carbon-neutral network. We’re immensely grateful to Polygon, who appreciated the potential and the value of Terra NFT projects, and who will help us keep delivering the value and the roadmap that our partner NFT projects have been envisioning”.

Returning to Terra, not everyone blames its collapse on bad luck like the CEO of Polygon. Charlie Shrem, founder of the Bitcoin Foundation and Bitcoin pioneer, said he was convinced that the project’s failure was in the order of things. 

Shrem, in fact, stated to Decrypt that:

“I think a lot of people predicted what would happen with Terra and LUNA. But at the end of the day, because we were in a bull market, it’s like an example of our industry”.

Shrem, further explaining the point made about the project’s failure, went on to say that: 

“Algorithmic stablecoins have been tried so many times over the last 10 years; even in 2014, people were trying to theorize different ideas. Tether launched for a reason, but they realized you can’t create a stablecoin backed by the same type of speculative asset, so when one starts going down, people are going to be selling one for the other”.

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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