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).
Bitfinex is supporting the launch of #LUNA 2.0 ‘Rebirth Terra Network' migration on May 27th
More details to follow in the coming hours https://t.co/CrYgWvnNal
— Bitfinex (@bitfinex) May 25, 2022
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.
We have put together a multi-million dollar fund to provide relief to Terra developers to help them stay on their feet and migrate.
— Ryan Wyatt (@Fwiz) May 25, 2022
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
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”.