IoTex foundation has confirmed the launch of a $100M fund that supports DApp development to usher in machine financialization. The platform that focuses on the Internet of Things wants the fund to sponsor the creation of a sustainable ecosystem.
IoTex Launches a $100M Fund for a Decentralized Economy
IoTex has announced a $100M fund to sponsor the development of a sustainable ecosystem of machine financialization. It revealed that the fund aims to support over 1000 decentralized machine economy firms working on use cases for connecting over 10M smart devices to the MachineFi portal.
Decentralized Machine Economy is another upcoming innovation in the crypto space that depends on machines to drive the economy rather than people. This economy is powered by blockchain technology to maintain decentralization in conjunction with Artificial Intelligence to make it more efficient. It can transform how businesses are carried out by making them more efficient and sustainable.
MachineFi is a term that refers to another paradigm in Web3 that will serve as the foundation for the decentralized machine economy. The monetization of machine resources and intelligence will benefit individuals rather than centralized businesses like traditional economies.
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MachineFi plans to transfer the profits raised through device monetization from centralized tech companies to the actual users, in line with Web3. This iteration of the internet targets to shift the current financial model of the internet from platforms towards user ownership.
Jing Sun, IoTex’s Head of Investment and Ecosystem, said that the fund would be a perpetual green vehicle that would support over 10K MachineFi focussed firms for the next one or two decades. Sun said that the fund would help connect tens of billions of devices to the IoTex MachineFi Portal in the same period.
The company will vet all DApp developers thoroughly to guarantee a successful integration of projects to their systems and prevent misuse of the fund. If the developers are deemed worthy, they will receive full support from the foundation.
IoTex rebranded in November 2021 similarly to Facebook to focus on the development of MachineFi. Their dream lies in the hope that MachineFi would combine machines, the metaverse, and traditional financial structures to improve the financial sector. It also plans to address the integration of smart gadgets using blockchain technology.
Are Economies Going Decentralized Any Soon?
The news on MachineFi and decentralized machine economy raise the question of whether digital economies will mainstream any soon. According to recent trends like the increasing focus of regulators on digital assets and the upcoming decentralized projects, this seems like the early stages of adoption of such economies.
Governments like the US, UK, India, Russia, El Salvador, Turkey, China, Japan, and many others are working hard to make digital assets safer. These developments show that the digital and decentralized economies age is already here with us. The countries are even making CBDCs showing their faith in the digitization of the financial sector.
Consequentially, as the crypto market becomes more extensive, scam and hack attacks increase at an almost similar rate. Due to this reason, it is advisable to be keen on what assets you invest in by conducting deep research on them. However, only time will tell how fast the world will adopt decentralized economies.