How can a network like Ethereum continue to sustain its community of developers with funding without relying on a central authority?
Panvala has a smart contract for that.
Just days ago, the ConsenSys-backed decentralized foundation devoted to helping develop projects on the Ethereum network launched its mainnet. And it’s now putting out a call for blockchain developers to submit proposals, which can now be reviewed and voted on by the Panvala community, as the platform prepares to distribute a fresh batch of token grants next week. (Obligatory disclosure: ConsenSys also funds Decrypt.)
Panvala, first launched in February 2018, is a token-curated registry that rewards its users whenever they bring new applicants onboard. These applicants can include both individuals and team projects that seek to enhance the Ethereum network and resolve current challenges. Participants on the the Panvala platform can then cast votes on various issues or challenge apps that they consider unfit or lacking purpose.
Enterprises that demonstrate their worth are rewarded with Panvala’s own Ethereum-based token, PAN. The result is a funding mechanism for Ethereum-based projects that provides an alternative to the now broken ICO model that sustained the industry for the last couple years.
The token grants themselves are ponied up by corporate sponsors, such as Tenderly, LevelK, Sigma Prime and MythX. Among the major initiatives that Panvala has funded already include BrightID, a decentralized network that focuses on keeping fake accounts out of applications; Gitcoin, a grant system that allows the community to monetize or incentivize Open Source Software work; and Plasma Group, which is creating a framework for developers to write Plasma apps that scale Ethereum on Layer 2.
“Countless projects and people depend upon the Ethereum blockchain for their success,” said Panvala founder Niran Babalola in a statement. “Problems like security and scalability span the entire ecosystem, but there aren’t reliable business models to solve these problems that will affect millions (and even billions) of people’s lives,” he said.
By contributing to Panvala, it “rewards the teams who solve” these problems, according to Babalola.
Ethereum, while still the most popular blockchain for building new tokens, continues to be plagued by concerns over its scalability, according to a new Binance report. As the world’s second-largest cryptocurrency by market cap, Ethereum’s smart contracts capabilities have made it the number one network for the creation of new digital assets.
The problem, however, is that the Ethereum network has become overstuffed, according to Binance Research, which has led to issues such as slow transaction speeds and high fees. And that means that competing blockchains, including Binance Chain, EOS and TRON, have an opportunity to play off Ethereum’s weaknesses to drive both users and developers to its own networks.
But by developing new community-led efforts to drive funds towards the projects aiming to shore up Ethereum’s deficiencies, Panvala is working to ensure Ethereum’s tokenization dominance remains unthreatened.