Stellar Lumens (XLM) Community Fund 2.0 to be a New and Improved VersionAugust 31, 2020
Open source makes it possible for the Stellar ecosystem and community to collaborate and build a truly decentralized network, thus innovating diverse solutions, which one will not be able to discover alone.
To fulfill the vision of greater financial inclusion for everyone, SDF understands that monetary support is crucial. Lumens are distributed by grants and funds to teams and projects independently to support developers in their projects.
They have completed five funding rounds and they have worked well and with each time, they are helping tweak and adjust the funding. The New and improved Stellar Community Fund 2.0.
Stellar tweeted: “A while back, we launched the Stellar Community Fund so our community could help fund their favorite projects. Today, SCF will re-launch as Stellar Community Fund 2.0, designed to be better and fairer for our community and participants.”
Sydney Ifergan, the crypto expert tweeted: “Bernard Shaw said those who cannot change their mind cannot change anything. Stellar Development Foundation Knew Change is necessary and so, SCF 2.0.”
Stellar Lumens (XLM) Community Fund 2.0
SCF is undergoing a structural change, because they have learnt that the fund has not been fully optimized to fully benefit the community. They were also able to see that the voting process was straining the community and that there was susceptibility to bad actors. Therefore, several deserving projects were getting pushed out of the final rounds.
The current change is necessary to refine the already existing voting system. Two separate voting rounds caused voter fatigue and irregular participation from voters.
The awards had to be balanced between two developing categories in projects. This is to avoid overpaying one project and underpaying another project. It was necessary to be business ready and to develop smaller and experimental projects.
The new changes are bringing in a nomination panel and quadratic voting. Thus, the burden of participation in voting is reduced. They have built a test voting interface to demonstrate the concept. However, they have given an equation Cost to voter = (number of votes)² as to be best demonstrating the concept. The more someone cares about the project, the more willingly they have to invest in voting for it.
SCF 2.0 now has funds to provide for different projects. In the past the participants generally fell in two buckets. “One were those who were ready to build their business and those who were experimenting within the ecosystem. To better cater to those audiences, SCF will be split into two funds: a Seed Fund and a Lab Fund.”
Good the SCF acknowledges the importance of the Lab Fund, which is that which leads to the process where someone gets ready to build their business.