Web3 grants and funding refers to the financial support provided to startups and projects within the Web3 and blockchain ecosystem to build decentralized applications and services on the blockchain. Web3, also known as the decentralized web, represents the next generation of the internet.
Decentralized applications, or dApps as they are known, offer the same services as traditional apps you use on your device today. However, dApps operate in a decentralized way, meaning no one central gatekeeper controls the service, data, or assets.
dApps are becoming increasingly popular as they offer several security and privacy benefits over traditional apps. They also offer a gateway to the world of decentralized finance and cryptocurrencies.
As a result, over the last five years, we have seen a surge in dApps launching across several blockchains. For example, in 2018, the leading dApp tracking company DappRadar tracked just a few hundred dApps on the Ethereum blockchain. In 2023, they track over 4000 across DeFi, NFTs, gaming, and more categories.
While the Web3 funding space constantly evolves, with new mechanisms and models continuously emerging. One thing, however, is clear, project teams require funding, grants, and support to achieve their goals in Web3.
This article will outline the differences between Web3 Funding and Grants and present the Fuse Ignite Web3 Funding program.
- What are Web3 Grants?
- What is Web3 Funding?
- Web3 Grants & Funding Landscape
- Fuse Ignite Web3 Grants & Funding
- Web3 Grants & Developer Funding in Summary
What are Web3 Grants?
Web3 grants refer to the financial support provided to projects and individuals in the Web3 ecosystem, typically by organizations or foundations that aim to promote the development and adoption of Web3 technologies.
These grants are focused on funding software development, research efforts, and other initiatives related to specific Web3 platforms or technologies. For example, the Web3 Foundation offers a comprehensive grants program that explicitly targets funding software development and research related to Polkadot and Kusama.
Grants are typically non-equity-based and do not require repayment. They are often awarded based on project proposals, potential impact, and alignment with the goals of the grant provider.
What is Web3 Funding?
Alternatively, Web3 funding is a broader term encompassing various financial support sources for Web3 startups and projects. It includes grants and other funding mechanisms such as venture capital investments, token sales, decentralized crowdfunding, and other forms of fundraising.
Web3 startups may seek funding from venture capital firms and angel investors or participate in token sales or Initial Coin Offerings (ICOs) to raise capital for their development and operations.
Decentralized Finance (DeFi) protocols built on blockchain platforms like Ethereum have also emerged as a funding source for Web3 projects. In addition, web3 funding can be equity-based or token-based, depending on the specific fundraising method chosen by the startup or project.
Web3 Grants & Funding Landscape
In the Web3 funding landscape, startups typically raise capital through venture capital firms and angel investors, who provide financial support in exchange for equity or tokens. Token sales and Initial Coin Offerings (ICOs) were previously popular, but their popularity has waned due to regulatory concerns.
Decentralized Finance (DeFi) protocols, built on blockchain platforms like Ethereum and Fuse, have become a significant funding source, allowing individuals to lend, borrow, and participate in crowdfunding campaigns or token launches.
It’s reported that venture funding for Web3 experienced a significant decline in the first quarter of 2023. It plummeted 82% compared to the previous year, dropping from $9.1 billion in Q1 2022 to only $1.7 billion in Q1 2023. This decline in venture funding indicates a potential shift or fluctuation in the funding environment for Web3 startups.
At the same time, Fuse Network rolled out its Ignite Program, a $10 million ecosystem and development fund for projects looking to launch DeFi and real-world projects on Fuse.
Fuse Web3 Grants & Funding
A liquidity program for DeFi projects will provide on-chain incentives to support the project’s growth and expansion. In contrast, the grants program is for innovative real-world projects that leverage Web3 payments for mainstream business adoption.
As part of our ongoing mission to bring Web3 payments to mainstream business adoption, we are dedicated to supporting both real-world and DeFi projects. A thriving financial ecosystem on Fuse provides the support needed for businesses to play an empowering role in the ongoing paradigm shift in money. Moreover, teams will receive more than just financial support.
- Financial support to kickstart your project.
- Technical assistance and resources from our team of experts.
- Gain exposure and visibility within the Fuse ecosystem.
- Potential partnerships and collaborations with other projects in the ecosystem.
- Be part of an ecosystem focused on practical and sustainable applications of Web3.
The Ignite Web3 Grants and Funding comprises two main programs. The first is an on-chain DeFi incentives fund of $10 million, designed to increase TVL and the total number of token holders on bridged chains and stakers on Fuse and active validators.
The second program is a grant fund of $2.5 million, which coincides with the deployment of a launchpad on Fuse. The company will provide grants of around $25K to approximately ten projects throughout the rest of 2023, with a focus on real-world solutions.
In short, the Fuse Ignite program is set up to accommodate two groups of builders, those looking to build DeFi and Web3 payment applications and companies that want to leverage their software to create a SaaS business model on Fuse and become the decentralized middle layer that facilitates business operations.
Learn more and apply for funding today!
10 Reasons to Build on Fuse (Apart from Funding)
Fuse offers unique features and benefits, making it a compelling option for developers looking to build on a fast, interoperable, efficient, scalable blockchain. If your funding or grants application is successful, you can launch your project in one of the most promising blockchain ecosystems.
- Fuse’s easy Web3 Payment Solutions – Fuse has provided businesses and developers with a comprehensive infrastructure for integrating Web3 payments into real-world applications. For example, Bitazza uses Fuse to build its flagship Freedom Wallet for payments at the Mystic Valley music festival in Thailand and on tourist ferries around the country’s islands.
- Low-cost transactions – The Fuse Network allows easy and low-cost transactions, making it a more efficient alternative to traditional cash or other cashless payments. This feature makes Fuse an attractive option for businesses and individuals who want to conduct transactions at a lower cost.
- EVM compatibility – The Fuse Network is fully compatible with the Ethereum Virtual Machine (EVM), which means that Ethereum smart contracts can be deployed and run on top of the Fuse Network. This compatibility allows developers to leverage the robust tools, documentation, and examples ecosystem. As a result, solidity provides the de facto standard for blockchain development.
- Low fees and fast transactions – The Fuse Network blockchain offers fast confirmation times of five seconds on average. A transaction can be considered finalized after just one confirmation for all practical purposes. Fuse Network’s average transaction fees are also way below one cent, making it a cost-effective option for developers.
- Cross-chain compatibility – Fuse Network is designed to be cross-chain compatible, which means it can interact with other blockchains such as Binance Smart Chain, Polygon, and more. This feature makes it easy for developers to leverage features on other blockchains and expand their dApps’ reach.
- Access to excellent tools and services – The Fuse Network provides developers access to various tools and services, such as integrated development environments (IDEs), debugging tools, and analytics platforms. This makes it easy for developers to build and deploy dApps and smart contracts on the Fuse Network.
- Future-proof – Fuse constantly evolves, making it a future-proof option for developers. With built-in support for decentralized finance (DeFi) use cases and its unique architecture providing high throughput and low latency, Fuse is suitable for many use cases.
- Access to a thriving community – The Fuse Network has a large and supportive community of developers, which can help with any questions or issues.
- Scalability – The Fuse Network offers a scalable solution for dApp developers, allowing them to quickly reach and scale their customers. With its high throughput and low latency, Fuse can handle many transactions, making it suitable for many use cases.
- Flexibility – The Fuse Network’s framework allows organizations to focus on reaching and scaling their customers while spending less time and energy on IT. This flexibility makes it easy for developers to adapt to changing market conditions and customer needs.
Web3 Grants & Developer Funding in Summary
Web3 grants and funding support the development and adoption of decentralized applications (dApps) on the blockchain. Fuse provides Web3 payment solutions, making it an attractive option for businesses like Bitazza, which used Fuse to build the Freedom Wallet for payments at the Mystic Valley music festival in Thailand and on tourist ferries.
Fuse Network offers low-cost transactions, EVM compatibility, low fees, and fast transactions, making it efficient and cost-effective for developers. It is also cross-chain compatible, enabling interaction with blockchains such as Binance Smart Chain and Polygon. In addition, developers gain access to tools, a supportive community, scalability, and flexibility, making Fuse a future-proof option for various use cases.
The Fuse Ignite program includes a $10 million on-chain DeFi incentives fund and a $2.5 million grant fund. It supports DeFi and real-world projects, providing financial and marketing support, technical assistance, exposure, and potential partnerships.
Fuse’s Web3 grants and funding, along with its features and ecosystem, provide developers with the necessary support to build dApps and create practical and sustainable applications of Web3.