Ethereum co-founder, Vitalik Buterin donates 1,000 ETH to three startups

  • Vitalik Buterin sends $300,000 to three startups within the Ethereum network.
  • Ethereum developers are working on Ethereum 2.0; the Constantinople upgrade is expected in January 2019.

The co-founder of the world’s third largest cryptocurrency, Ethereum is reported to have given $300,000 to three startups in the blockchain arena. According to a report by CoinDesk, a news outlet, Prysmatic Labs, ChainSafe Systems and Sigma Prime are the startups that have benefited from the 1,000 ETH donation.

All the above startups are working within the Ethereum ecosystem. The main purpose is to come up with a properly working Ethereum 2.0. For instance, Sigma Prime is creating Lighthouse, an Ethereum 2.0 client, Prysmatic is concentrating on the scalability of Ethereum network while Chainsafe is also creating an Ethereum 2.0 client.

The donation comes following a discussion that spiked on Twitter where core developers within the network cited lack of funding; a situation that is slowing down the development pace. One of the co-founders of Prysmatic Labs, Preston Van Loon stated that the currently grants are “hardly enough to take the whole team full time with significant pay cuts and it’s certainly not even for us to scale the team to where we need it.”

In response to the discussion, Vitalik tweeted:

“Just sent 1000 eth. Yolo [you only live once].”

These developments have sparked discussions with some market participants noting that Ethereum does not have proper leadership. The CEO of SpankChain Ameen Solaimani reckoned:

“Ethereum has taken its lead for granted for too long (2 years). Needs increased focus and urgency on scalability to reclaim its narrative. Move fast or die slow.”

All the three startups have been given grants before. Although it is clear that the grants have not been enough. For example, CoinDesk note that Prysmatic Labs received $500,000 as grant in October while earlier in the year it had been awarded $100,000.

Ethereum is trading at $106 following a 3.6% rise in the on the day. According to the rates table provided by FXStreet, the trend is still bullish.

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