$1 Billion BSC Ecological Fund! BNB and CAKE Surge Over 10% in a Single Day, How Will Binance Smart Chain Allocate Resources?

The "ecosystem fund" has become a standard offering in the L1 competition of underlying chains, with Solana, Terra, and Avalanche all proposing relevant plans to attract more developers. This generally also benefits the token price market. Binance Smart Chain (BSC), as a competitive public chain of the first generation of DeFi after the DeFi Summer in 2020, also announced on the 12th the launch of a $1 billion growth fund.

What does it entail? Which projects are supported in this initiative?

BSC $1 Billion Ecosystem Fund

In fact, BSC had already launched a $100 million accelerator fund at its inception, aimed at fostering decentralized application dApp development. The current growth fund has a much broader scope and is divided into four categories:

Talent Incubation: Allocating $100 million to guide developer communities, educate investors, provide academic grants, etc.

Liquidity Incentive Programs: Allocating $100 million to provide liquidity incentives for specific protocols based on innovation, locked assets, active users, or trading volume. It is claimed that derivatives projects MCDEX.io and Deri.finance will be the first to enter this incentive program. In addition, support for professional traders and institutions is also included in this initiative.

Incubation: Allocating $300 million, with $100 million for regional and global hackathons, and the remaining $200 million to expand the Most Valuable Builder (MVB) developer program and incubate 100 innovative dApps.

Investment: Allocating $500 million for the development of decentralized computing, gaming, metaverse, virtual reality, artificial intelligence, financial services, not limited to BSC.

Response of Related Tokens such as BNB, CAKE

Although the details of the plan have not been disclosed, the BSC fuel token BNB and BSC's largest decentralized exchange PancakeSwapCAKE both saw daily gains of over 10%. Tokens like XVS, CHESS, and ALPACA, following PancakeSwap in terms of locked volume, also showed impressive daily gains, while MCB and DERI mentioned in the plan had even more outstanding performances.