Summary:
- Polygon (MATIC) has launched an uncapped fund to assist Terra projects willing to migrate to its chain.
- Financing of the fund will come from $450 million already raised by Polygon, its treasury, and a $100 million ecosystem fund.
- Polygon is willing to deploy more capital for Terra projects migrating if needed.
- The fund’s launch comes in the wake of the Terra community agreeing to plans for the new blockchain of Terra 2.0.
As the UST depegging and LUNA inflation saga continues to rock the crypto-verse and traditional finance circles, Polygon has kickstarted the process of assisting Terra developers and projects willing to migrate to its chain.
According to a report by TechCrunch, Polygon (MATIC) has launched a ‘relatively uncapped multi-million dollar fund’ aimed at assisting Terra projects with the process of migrating to its blockchain. Financing for the fund will come from the $450 million previously raised by Polygon, its treasury, and a $100 million ecosystem fund.
Polygon Studios CEO, Ryan Wyatt, told Techcrunch that the company is willing to deploy more capital if needed. He said:
I don’t want to put a finite cap on [the fund], because the goal is to make sure we have capital set aside to help all developers who want to come over to Polygon do so.
It’s really important we have it, because all of their circumstances are uniquely different from each other.
UST’s Collapse was Unfortunate. You Want to Figure Out How to Help These Folks – Polygon Studios CEO
With respect to the recent depegging and collapse of TerraUSD (UST), Mr. Wyatt defined the event as ‘unfortunate on so many different levels.’ Additionally, the collapse of UST had a significant impact on the entire Web3 industry, and one way of solving it was ‘to figure out how to help these folks.’
Terra Proposal 1623 Passes, new Terra Chain to Launch on May 27th
Polygon announcing an uncapped fund to assist Terra projects willing to migrate to its chain comes on the backdrop of the Terra Community passing proposal 1623 to launch a new Terra Chain (LUNA) that will co-exist with the old Terra Classic (LUNC) that was impacted by the UST depegging.
1/ Terra 2.0 is coming.
With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community.— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 25, 2022
At the time of writing, the crypto exchanges of Bitrue and Huobi have announced support for the new chain and will go on to list the new digital asset of LUNA, expected to launch on May 27th. Furthermore, both exchanges are working out the details of the potential subsequent airdrop of LUNA tokens to Terra Classic (LUNC) holders.