Open Source and Decentralized Protocol ssv.network DAO has launched a $50 million ecosystem fund dedicated to supporting the development of applications based on distributed validation technology (“DVT”).
According to a press release shared with crypto potatothe project secured funding from various industry investors including DCG, OKX, HashKey, NGC, Everstake, HackVC, GSR, Chorus.One SevenX, and 1kx.
ssv.network noted that the fund is the first to be dedicated exclusively to DVT use cases, adding that its primary goal is to “solidify DVT as critical Ethereum infrastructure.”
What is DVT?
DVT is one of the key developments on the Ethereum roadmap. DVT is an infrastructure primitive that allows validators key exchange between parties who do not trust the Ethereum network. The technology is based on a network of nodes that operate under consensus to help generate ETH rewards for strikers.
For larger validators, DVT provides high availability and reduces infrastructure costs while ensuring a comparable level of protection that a larger validator would have for smaller validators.
Commenting on the development, Alon Muroch, Senior Contributor at ssv.network, said:
“DVT’s goal is to distribute the security of Ethereum by offering quick and easy access to an open source public good that will completely change the way staking is done today.”
Muroch added that more than 20 companies are already building on the ssv.network DVT protocol, and that number is expected to increase with the launch of the $50 million Ecosystem Fund.
ETH staked exceeds 16 million
The latest development comes as the Ethereum network reaches a new milestone. According to data from etherscanthe amount of ether staked (ETH) has grown by 18% to over 16 million since the network transitioned to a proof-of-stake (PoS) network in 2022. The amount staked represents over 13.28% of supply total ETH, worth $22.42 billion.
However, most of the ETH staked is concentrated in the hands of a few players, leaving the Ethereum network in demand for decentralizing factors such as DVT.
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