Aurora, a Near protocol EVM scaling mechanism, has teamed up with Proximity Labs to raise $90 million in a token fund to attract new developers.
The fund, which was launched today in collaboration with Proximity Labs, will focus on financing decentralized finance (DeFi) applications based on the Near protocol.
Near Protocol is a DApp platform that focuses on the developer and user usability. Near Protocol, an emerging layer-1 competitor to Ethereum supports smart contracts and employs a proof-of-stake consensus mechanism.
Aurora Labs provided funding, allocating 25 million AURORA tokens — currently worth around $90 million — from its DAO treasury to proximity labs.
As a result of the funding model, Proximity Labs will now be in charge of managing the funds and awarding grants to developers working on DeFi Dapps on the platform.
The company believes that the token-based funding structure will boost network activity.
Dr. Alex Shevchenko, the founder of Aurora Labs, stated that the launch of the new token fund will help make developing Ethereum applications on the Near protocol more appealing to developers.
The EVM is a blockchain-based computer engine at the heart of Ethereum’s operating system, responsible for transaction execution, smart contract deployment, and other operational functions, as well as allowing developers to build DApps on the Ethereum blockchain.
The EVM has been adopted as the default smart contract engine by an increasing number of independent blockchains, including BNB Chain, Avalanche Chain, Polygon, and Fantom.