Project Catalyst, the heart of Cardano’s grassroots innovations, recently concluded its most significant funding round. Significantly, this marked the most triumphant phase in Cardano’s history, following two action-packed months of proposals and voting. Besides, the Fund10 round had over 50 million ADA at stake, making it the most extensive funding initiative Cardano has seen.
However, this success story was full of hurdles. While some community members rejoiced, others voiced their criticisms. Despite receiving a staggering 1,467 proposals and witnessing a voting frenzy of 408,000 votes, only 192 projects saw the green light. Interestingly, these approvals revolved around bolstering Cardano’s framework, Web3 games, and NFTs.
Moreover, as Project Catalyst celebrated its achievements and looked forward to the next round, the Cardano community portrayed mixed feelings. Concerns surfaced, especially about the dominance of Whales and a noticeable lack of diversity among applicants.
Many in the Cardano sphere, including influencers, cheered the successful conclusion. However, alongside this appreciation were critiques, most notably from Cardano developer Kaizen Crypto. He highlighted potential Whale influence, suggesting a voting cap for initial wallets in future rounds. This move aims to protect Project Catalyst’s democratic principles.
Additionally, community conversations indicated the prevailing influence of larger wallets, often downvoting projects outside of Cardano’s existing infrastructure. Some even claimed that a significant chunk of the funding, around 63%, landed with just ten teams.
The diversity concern was evident when most votes gravitated towards well-established names like Paima Studios. Furthermore, one proposal from Paima, despite its substantial ADA approval, seemingly needed due diligence in its proposal response.
However, many community members discredited the Whale manipulation idea to counter these apprehensions. They believed a project’s success leaned more towards its marketing prowess than mere content. Comparing the fundraising procedure to a popularity race, some opined that being popular sometimes trumps quality.
Additionally, IOG has sought a considerable 2.14 million ADA to ensure seamless operations for Project Catalyst. Significantly, Project Catalyst has already allocated over $38 million in funds.
Charles Hoskinson remains optimistic, predicting that by summer 2023, Cardano might outpace other cryptocurrencies in decentralization. Moreover, Santiment’s recent data positions Cardano as the top development platform, overshadowing rivals like Polkadot and Kusama.
In conclusion, Project Catalyst, the world’s premier decentralized grant fund, holds immense potential for Cardano. However, addressing these emerging concerns promptly is crucial to maintaining its reputation.