Manta Network, the layer-2 modular network for zero-knowledge applications, has established a $50 million ecosystem fund through its parent, Manta Foundation, to accelerate project development on its blockchain.
“The $50 million allocation will last for one year starting from June 15th,” Manta wrote. “All applicants who successfully receive our grant or direct investment will fall under the EcoFund Program.”
A zero-knowledge (ZK) proof is a cryptographic protocol that enables one person (the prover) to convince another (the verifier) that a particular claim is true without disclosing any details about the claim itself. ZK-proofs are crucial in the world of cryptocurrencies for allowing anonymous transactions without disclosing the particulars of the transaction or the identity of the users.
Out of the $50 million ecosystem amount, $35 million will be allocated to direct investments in promising projects on the Manta Network. Meanwhile, $10 million will be allocated as ecosystem grants. Finally, $5 million will go toward hackathons, $4 million for general grants, and $2 million will be dispensed for artificial intelligence, memecoin and ZK-specific projects.
Manta said its focus is on projects with “a clear path toward market disruption and significant growth, ensuring their long-term success within our ecosystem.”
Currently, the Manta ecosystem has a total value locked (TVL) of $54.7 million, a significant decline compared to its peak TVL of $684 million in March. The decline can largely be attributed to the conclusion of its New Paradigm crypto yield program, which saw users withdraw their funds en mass after the yields were harvested.
Earlier this year, Manta experienced a distributed denial-of-service (DDoS) attack amid a successful token listing on multiple exchanges. The incident has since been resolved. At the time of publication, Manta has a fully diluted market cap of $1.44 billion.
In March, Kenny Li, co-founder and chief operating officer of Manta Pacific, told Cointelegraph that of the 44 active Ethereum layer-2 blockchains in existence today, “only a few” will still be around in five years.
Related: After a rocky token listing, Manta Network is back in business