- The IOTA community has approved a significant liquidity bootstrapping program to jumpstart the newly launched IOTA EVM ecosystem.
- To enhance liquidity and deliver an exceptional DeFi experience, 172 million IOTA tokens will be distributed among various dApps.
In the latest development, the IOTA Foundation announced the successful approval of a governance proposal aimed at accelerating the growth of the IOTA EVM through allocating the IOTA tokens as liquidity within the IOTA ecosystem.
Many IOTA holders voted in favor of the liquidity bootstrapping program. With the IOTA community approval, Growth program members are excited to strategically allocate the available funds, thereby attracting new participants to the IOTA ecosystem while improving the overall user experience. Thus, the IOTA community collectively decided that they would allocate 172 million tokens, currently valued at $27.4 million, to enhance the DeFi experience on the IOTA EVM platform.
The #IOTA community has voted to kickstart the IOTA EVM ecosystem with a massive liquidity boost!
Get ready for 172 million $IOTA tokens to flood in & power various dApps, creating deeper liquidity and an incredible #DeFi experience. More info
https://t.co/R4FP9EjSCH pic.twitter.com/695lo2l0CM
— IOTA (@iota) August 1, 2024
IOTA EVM Unveils Liquidity Bootstrapping Program
The IOTA EVM Growth Program consists of two members from the IOTA Ecosystem Department and two community members. Together, they will establish a Safe multi-signature wallet on the IOTA EVM to receive funds from the “unclaimed token pool.” IOTA said that this liquidity bootstrapping program will run initially for two years.
Thus, the Growth Program will strategically allocate funds to several different DeFi applications while promoting growth in different areas such as Total Value Locked (TVL), trading activity, price stability, and liquidity. This liquidity infusion would help enhance the visibility of the IOTA EVM and thus stimulate demand by offering new opportunities for DeFi participants. Crypto News Flash reported that IOTA EVM partnered with Nakama Labs to bring DeFi innovation to DLT applications.
Also, the IOTA EVM Growth Program team will focus on ensuring that fund allocations help boost liquidity and user experience across a broad range of applications. Besides, they will prioritize asset security, fair opportunities within the ecosystem, and the effectiveness of the implemented measures. IOTA said that the ultimate goal is to unlock growth opportunities and expand supported projects’ utility and user base by strategically depositing funds into their smart contracts. As reported by CNF, IOTA EVM recently introduced Cyberperp to revolutionize decentralized trading on the platform.
Ensuring Transparency
The IOTA EVM Growth Program will ensure that all funds are controlled by MultiSig holders, who can withdraw them from applications at any time. Unlike donations or sales, the program provides funds directly to the application’s smart contract, with Liquidity Provider tokens held securely in the MultiSig wallet.
Besides, to ensure complete transparency, all actions of the Growth Program would be visible and trackable on-chain using the blockchain explorer. Moreover, a dedicated bot would relay every action of the MultiSig wallet to the IOTA Discord, informing the community. Monthly reports would be published to summarize the program’s activities.
In two years, IOTA token holders can vote on extending the program through a governance process. The IOTA cryptocurrency is trading 2.76% down at $0.1446, with a market cap of $486 million. Here’s a look at the evolution of the IOTA ecosystem over the past many years.
