How decentralized platforms democratize crypto funding initiatives

According to Project Catalyst's Group Product Manager, current traditional financial models have helped the crypto and blockchain sector raise billions of dollars over the years, but they are not without weaknesses.

At the recent Cardano Summit in Dubai, Chris Baird, a key member of Project Catalyst, spoke to Cointelegraph about the initiative, the extent of the consortium's participation in the Cardano ecosystem, a voting community-driven governance and funding mechanism. Resources and development direction of the platform.

Baird talks about the opportunities and challenges of traditional, decentralized platforms for raising capital:

“The problem to be solved [in traditional financing models] Decisions on who gets the money will probably come down to a few [people]He said.

Funding decisions made by a few people do not have “big results” and allow communities to play an active role in social change. On the other hand, decentralized funding initiatives are “a bit like direct democracy” and provide platforms for crypto owners to express their ideas and concerns.

However, Baird acknowledges that large-scale licensing of such community-based projects can be challenging given decentralized communities with tens of thousands of stakeholders and projects around the world.

“It's really hard, especially with something like Catalyst where everyone has an opinion…that means there are 10,000 or more opinions on how to make Catalyst,” he said.

To address the problem in the Cardano ecosystem, Catalyst is launching a pilot where the community not only decides which ideas get funded, but also ensures that funded projects are on target with a milestone-based funding approach and accountability, Baird said. Model.

Project Catalyst F 11 and above.

A presentation by Chris and Danny took place at Cardano Summit, and we have news to share:

Goodbye to voting, at least for now. @danny_cryptofay “We want to renew hearts and spirits.”

– Mauro Andreoli || Cardano Ambassador (@MauroAndreoliA) November 3, 2023

Also, following the recent Fund10 – allocated $16.5 million by Cadano (ADA) – the support and voting mechanisms are changed to “yes-or-abstain” to discourage new ecosystem members from submitting ideas.

“Innovation often happens at the edges. And if we do not support [ideas in the] How do we announce the first stages, the ones that were really and the most innovative” So without creating a ring fence around different types of ideas, we want to create conditions that satisfy this international audience with different levels of readiness and maturity level of adults.

According to Baird, they could reintroduce the old voting system for funding more “mature” projects that have gone through user testing and community feedback.

Asked how he wants decentralized finance to develop, Baird said he envisions it becoming a multi-tenant ecosystem, with many other blockchain networks, Web2 businesses and governments taking a similar approach.

A Catalyst Group product manager said they have raised 137 million ADA (about $60 million) and funded more than 1,300 projects since 2021. He estimates that the initiative will allocate more than $100 million over the next four years.

Magazine: Slumdog Billionaire 2: ‘Top 10… doesn't bring satisfaction,' says Polygon's Sandeep Nailwal Magazine: Slumdog Billionaire 2: ‘Top 10… doesn't bring satisfaction,' says Polygon's Sandeep Nailwal.