BSC Is Back in the Game as Binance Announces $1 Billion Incentives Program to Pump the Ecosystem
Money is flowing in the cryptocurrency space with projects using incentives to attract masses and even more capital. Now, Binance has also joined in by announcing the launch of a $1 billion growth fund to support the Binance Smart Chain.
“BSC’s growth has attracted over 100 million users with its initial funding of $100 million,” said Binance CEO ‘CZ’ Changpeng Zhao.
“With the additional contribution of $1 billion, BSC will be better equipped to disrupt traditional finance and accelerate global mass adoption of digital assets to become the first-ever blockchains ecosystem with 1 billion users.”
About half of the Crypto Mass Adoption Fund is reserved for investments in areas including decentralized computing, metaverse, gaming, virtual reality, artificial intelligence, and blockchain-based financial services, said the company in a statement.
Of the remaining $500 million, $300 million will be directed towards a builder program, and $100 million each will be used in liquidity incentives and talent development.
Competing blockchains like Algorand, Avalanche, and Fantom have already tried this tactic resulting in an explosion in their inflows. Fantom launched a 370 million FTM incentive program for developers, Avalanche (AVAX) announced a $180M ecosystem-wide liquidity mining program, and Algorand (ALGO) launched a $300 million fund for various incentives.
These incentive programs helped these blockchains attract a lot of capital. Fantom saw its total value locked (TVL) surging from less than $500 mln to $5.77 bln. Similarly, Avalanche’s assets went from $300 mln to over $5 bln.
Meanwhile, BSC’s assets have been stagnant since May, when it hit $32.6 billion in TVL. At the time, in less than three months, it had grown 15x as Binance Smart Chain attracted the priced-out users with its faster and cheaper alternative to Ethereum (ETH).
As of writing, the BSC TVL is sitting at $18.2 bln.
To bring excitement, people, projects, and funds back, Binance is injecting the biggest yet incentives into its ecosystem.
With this initiative, the focus will also be on “building cross-chain and multi-chain infrastructures integrated with different types of blockchains,” said Gwendolyn Regina, investment director of the BSC Accelerator Fund.
In response to this, the native token BNB nearly jumped about 12.5% to $441 but has since pared some gains to now trade at $427.