Supporting the development of NFT, gaming and DeFi projects on Solana, the new fund will help former Terra producers to remain solvent after Terra’s collapse.
Solana Ventures and the Solana Foundation have established a $100 million fund to support nonfungible token (NFT), blockchain gaming, and decentralized finance (DeFi) projects in South Korea.
The fund will help maintain the viability of some Terra-based projects after the ecosystem’s collapse last month, in addition to helping Solana-based ventures (SOL).
According to the Solana Foundation, the Terra designers should not be held culpable for what transpired on the blockchain network. Johnny B. Lee, general manager for games at the Solana Foundation, remarked in an interview with Bloomberg on June 8:
“The developers did nothing really wrong, but they’re left in the lurch.”
The new fund adds to Solana’s mission to become the finest gaming blockchain. In November of 2017, Solana Ventures joined together with FTX and Lightspeed Ventures to establish a $100 million gaming fund. In addition, it has a $150 million fund with game-focused companies Forte and Griffin Gaming Partners.
With the government’s pledge of $187 million to build its own metaverse ecosystem, South Korea is expected to become a center for NFT and Metaverse research over the next decade. The primary focus of the Korean metaverse will be the growth of digital content and digital companies inside the country.
As businesses compete for grant money, the Solana Foundation anticipates an increase in national interest in gaming finance (GameFi) and decentralized finance (DeFi).
Several South Korean platforms, such as the Klaytn layer-1 blockchain and the Upbit exchange, are already providing NFTs or access to DeFi, signaling that a competition is underway to develop the best platforms.
According to DeFi Llama, KlaySwap is the biggest DeFi platform in Klaytn, with a total locked value of $274 million (TVL). The largest exchange in the country, Upbit, has its own NFT marketplace.
The development of blockchain-based games in South Korea may prove difficult for local businesses.
Currently, the law prohibits the offering of monetary awards, including bitcoin, through games. The Korean government asked that Apple and Google remove play-to-earn (P2E) games from their Korean stores in December, citing this law as the cause.
Recent months have seen a rise in NFT trading and DeFi activity in Solana. DappRadar, a decentralized application (Dapp) tracker, ranks Solana’s leading NFT marketplace Magic Eden as the second largest in the world, behind OpenSea, with 35,526 daily traders and $7.31 million in daily volume.
Despite the cryptocurrency apocalypse, Metaverse tokens have increased 400% annually.
By providing funding for ecosystem development, Solana may be able to mitigate the unusual network instability that has disrupted activities on the network since last year.
According to CoinGecko data, the price of SOL has stayed steady over the last twenty-four hours, trading at $39.05 USD.