NEWS
Different Funding Models for Crypto R&D

2018-01-28 21:17:03
by Saffron Weale
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Different Funding Models for Crypto R&D

Many developers might be able and willing to work for free on open source cryptocurrency projects, but most cannot. A constant source of funding is always desperately needed to keep the ball rolling and push projects forward.

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Two American universities, Arizona State (ASU) and MIT, have acquired substantial research funding, sourced via two different models. MIT is well enough known to garner global fundraising attention, and has raised enough money to pay the salaries of three Bitcoin developers, but funding relies on donors\' goodwill. The project is also subject to the will of the university\'s governance as to how it may be run.

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At ASU the set-up is different, in that the university has made a partnering arrangement with a dedicated currency provider, Dash, who have sponsored fellowships and research facilities.

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In Dash\'s own dedicated Labs, the company self-funds the development teams, paying their salaries out the rewards derived from Dash\'s Blockchain transactions. Every month, 10% of these block rewards are set aside for those making a successful proposal to the Dash treasury. This treasury pays for all sorts of development and marketing efforts, as well as the monthly salary of its Core developers. These personnel, numbering some 50 assorted specialists, are paid directly out of the treasury at a total rate of $300,000 a month. No-one works for free, and no donations are required.

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