In the cryptocurrency industry, the pursuit of funding and grants can have a direct impact on job stability. This week, there have been various stories surrounding money in the crypto space, from Bitcoin Core developers receiving funding to the Optimism Foundation granting $42.5 million to Kraken for their new layer-2 network. Layoffs have also hit companies like Consensys and dYdX, adding to the job losses in the industry.
One interesting story is the success of Polymarket on the Polygon blockchain. Despite only bringing in $27,000 in fees on the PoS blockchain, the betting app has gained mainstream attention and usage. The low fees on Polygon PoS, around $0.007 per transaction, make it an attractive platform for applications like Polymarket. The CEO of Polygon Labs, Marc Boiron, highlighted that the success of Polymarket shows that a blockchain platform can be successful without bringing in large revenues in transaction fees.
Another significant development is Kraken’s decision to build their layer-2 network on the OP Stack from Optimism, with a grant of 25 million OP tokens worth $42.5 million. This move shows the competition in the layer-2 space and the efforts of the Optimism Foundation to incentivize new networks to join the Superchain.
Additionally, the layoffs at Consensys and dYdX highlight the challenges faced by companies in the crypto industry, citing broader macroeconomic conditions and regulatory uncertainty as reasons for the job cuts. The dismissal of a partner at DWF Labs following allegations of drugging a woman’s drink also raises concerns about ethical conduct in the industry.
On the funding side, Nillion raised $25 million led by Hack VC, with a focus on blind computing to protect sensitive information in applications. Emory University also disclosed ownership of $15 million worth of shares in the Grayscale Bitcoin Mini Trust, becoming the first endowment to publicly report exposure to bitcoin.
In terms of blockchain developments, Nil Foundation launched Testnet v1 for their Ethereum layer-2 network, while Stacks activated the Nakamoto upgrade to improve transaction speeds. Space and Time Labs introduced the SXT Chain testnet for secure data delivery to smart contracts using zero-knowledge proofs. Ethereum layer-2 Optimism welcomed a Bitcoin-native project, BOB, into its ecosystem for the first time, showing the interoperability between different blockchains.
Overall, the crypto industry continues to experience significant developments in funding, job stability, and technological advancements, showcasing the dynamic nature of the space and the challenges and opportunities it presents.