Binance, a cryptocurrency exchange giant, has always been a proponent of the “all of them” approach to cryptoeconomy ventures. This led to Binance Smart Chain (BSC) being developed by the company. It is a blockchain that is comparable to other smart contract projects such as EOS, Polkadot and Ethereum.
As Binance has increased its activities around BSC ecosystem in the recent months, such as the launch of the Venus stablecoin and the Vai stabilitycoin, some in Ethereum circles are growing weary that Binance was trying push Ethereum aside.
Changpeng Zhao, Binance’s founder and CEO, has long stressed that he doesn’t believe the future of crypto will be determined by chain rat race, but by interoperability and collaboration, and ultimately shared successes and parallel failures.
If Binance’s recent pledge to the Ethereum ecosystem proves anything, it is fair enough.
$100k Donation to ETH Community. Zhao, Binance CEO, announced this week at the Binance Summit Blockchain Applied that the crypto-exchange would donate $100,000 USD Gitcoin Grants Round 8. The round will run from December 2nd through Dec 18th 2020.
Gitcoin is a social network for Ethereum freelancers that acts like a social network. Gitcoin Grants is one of Gitcoin’s most popular offerings. This donation funding system for Ethereum’s innovators uses a special Quadratic Funding algorithm to allow grassroots donations as low as $1 to be matched by other donors to the tune of +$100 per pop.
Gitcoin has its grants seasons in rounds. These rounds have become more popular and well-respected in the ecosystem over 2020. Gitcoin Grants Round 7 was the largest round yet. It received more than $370,000 in matching donations from DeFi projects such as Chainlink, yEarn and many more.
Binance is now jumping in to the action for Round 8, with a monetary contribution of over 1/4th the amount of the last round’s start funds. This is cryptoeconomy-style putting your money where it’s needed. The exchange stated in its announcement of the donation pledge:
“We believe that working across different blockchains will be important for the growth and development of Binance Smart Chain, and the industry as a whole. There are many parties pushing for decentralization. That’s why Binance Smart Chain is compatible with Ethereum. […] It’s important to note that although Binance Smart Chain is a separate blockchain, Ethereum and Binance Smart Chain are not necessarily competing […] As a Blockchain industry, we need each other to innovate and find new uses for the ecosystem.
Are Interest Rates Rising?
Ethereum is the dominant cryptoeconomy player right now. It’s therefore no surprise that Binance’s leadership has the blockchain on its radar.
But this $100k Gitcoin donation is more than just Ethereum on the exchange’s radar. It’s a dynamic that’s in line CEO Zhao’s growing participation in the reigning smart contract platform.
Zhao posted on his Twitter account, just before the Gitcoin donation was announced, that he might buy 32 Ethereum just for the cause. He also stated that he wasn’t giving financial advice, but just wanted to support Ethereum development efforts.
These remarks were made as the long-awaited ETH2 address contract was launched earlier in the month. This is a development that paves way for Ethereum’s shift towards proof-of-stake consensus (PoS), where validators stake 32 ETH per lot instead of mining – starting as early as December 1st 2020.
We’ll be watching to see where Ethereum takes us and how Binance interacts with the world’s leading smart contract platform. The exchange’s latest offers are quite impressive for now.