Open source and decentralized protocol ssv.network DAO has launched a $50 million Ecosystem Fund dedicated to supporting the development of Distributed Validator Technology (“DVT”) based applications.
According to a press release shared with CryptoPotato, the project secured the funds from various industry investors, including DCG, OKX, HashKey, NGC, Everstake, HackVC, GSR, Chorus.One SevenX, and 1kx.
ssv.network noted that the fund is the first to be dedicated solely to DVT use cases, adding that its primary purpose is to “solidify DVT as critical Ethereum infrastructure.”
What is DVT?
DVT is one of the key developments in Ethereum’s roadmap. DVT is an infrastructure primitive that enables validators’ key sharing between non-trusting parties on the Ethereum network. The technology relies on a network of nodes that operate under consensus to help generate ETH rewards for stakers.
For larger validators, DVT provides high availability and reduces infrastructure costs while it ensures a comparable level of protection that a larger validator would have for smaller validators.
Commenting on the development, Alon Muroch, Core Contributor at ssv.network, said:
“DVT’s aim is to distribute Ethereum’s security by offering quick and easy access to an open-source, public good which will completely change the way staking is operated today.”
Muroch added that over 20 companies are already building on top of ssv.network’s DVT protocol, and that number is expected to increase with the launch of the $50 million Ecosystem Fund.
Staked ETH Surpasses 16M
The latest development comes as the Ethereum network reaches a new milestone. According to data from Etherscan, the amount of staked ether (ETH) has grown by 18% to over 16 million since the network transitioned to a proof-of-stake (PoS) network in 2022. The staked amount represents more than 13.28% of ETH’s total supply, worth $22.42 billion.
However, the majority of the staked ETH is concentrated in the hands of a few players, which leaves the Ethereum network in demand for decentralizing factors like the DVT.