SnowBridge, a decentralized cross-chain bridge designed to connect Polkadot with Ethereum, aims to secure approximately $6 million in DOT tokens from the Polkadot community.
Funding Proposal
SnowBridge’s proposal outlines its funding requirements to ensure long-term viability, align team incentives with the Polkadot community, and offer financial security for bridge users.
Breakdown of Funds
According to the proposal, SnowBridge is requesting 999,568 DOT tokens, valued at approximately $5,797,500. The funding will be structured as follows:
- Immediate payment: 191,379 DOT (about $1.2 million)
- Two-year vesting: 323,275 DOT (nearly $1.9 million)
- Three-month payout: 161,637 DOT ($937,500)
- Monthly disbursement (Sept 2024 to Feb 2025): 53,879 DOT ($312,500)
Purpose of Funding
The funds are intended to bolster user insurance, sustain the bridge for future scalability, and support ongoing operations and team incentives. SnowBridge emphasizes: “This proposal finalizes payments for 2024 engineering milestones, operational expenses, and team rewards. It also introduces enhanced incentive mechanisms and medium-term insurance provisions.”
Recent Developments
Following a successful two-week testing phase of the Ethereum-Polkadot bridge, SnowBridge utilizes first-party signatures from validators on both networks, ensuring transparency, permissionless functionality, and auditability. Initially supporting ERC20 asset transfers, future plans include integrating arbitrary messaging capabilities.
Risk Mitigation and Incentives
Colorful Nation, a Web3 ecosystem participant, recommends establishing an insurance fund in response to potential vulnerabilities, emphasizing the need for robust risk management: “The proposal should also include compelling liquidity incentives to attract Ethereum assets (e.g., WETH, WBTC) to Polkadot.”
This structured approach aims to secure necessary funding while enhancing operational resilience and expanding cross-chain capabilities between Ethereum and Polkadot.
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