- The IOTA community has approved a significant liquidity bootstrapping program to kick-start the recently launched IOTA EVM ecosystem.
- To increase liquidity and provide a great DeFi experience, 172 million IOTA tokens will be distributed among various dApps.
In a recent development, the IOTA Foundation announced the successful approval of a governance proposal aimed at accelerating the growth of the IOTA EVM through allocating IOTA tokens as liquidity within the IOTA ecosystem.
Many IOTA holders are in favor of the liquidity bootstrapping program. With the approval of the IOTA community, members of the Growth program are eager to strategically allocate available funds, thereby attracting new participants to the IOTA ecosystem while enhancing the overall user experience. As such, the IOTA community collectively decided that it would allocate 172 million tokens, currently valued at $27.4 million, to enhance the DeFi experience on the IOTA EVM platform.
馃摚 The #IOTA community has voted to kick-start the IOTA EVM ecosystem with a huge liquidity boost!
Get ready for 172 million $IOTA tokens flooding & powering various dApps, creating deeper liquidity and a great #DeFi experience. More info馃У馃憞https://t.co/R4FP9EjSCH pic.twitter.com/695lo2l0CM
– IOTA (@iota) August 1, 2024
IOTA EVM Launches Liquidity Bootstrapping Program
The IOTA EVM Growth Program consists of two members from the IOTA Ecosystem Department and two community members. Together, they will create a secure multi-signature wallet on IOTA EVM to receive funds from the “unclaimed token pool” IOTA says that this liquidity bootstrapping program will run initially for two years.
As such, the Growth Program will strategically allocate funds to several different DeFi applications while driving growth in areas such as Total Value Locked (TVL), trading activity, price stability and liquidity. This liquidity infusion will help increase the visibility of the IOTA EVM and thus stimulate demand by offering new opportunities for DeFi participants. Crypto Key News reports that IOTA EVM is partnering with Nakama Labs to bring DeFi innovations to DLT applications.
In addition, the IOTA EVM Growth Program team will focus on ensuring that the allocation of funds helps improve liquidity and user experience across different applications. In addition, they will prioritize asset security, fair opportunities within the ecosystem, and the effectiveness of the measures implemented. IOTA said that its main goal is to unlock growth opportunities and expand the utility of supported projects 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 the app at any time. Unlike donations or sales, the program provides funds directly to the app’s smart contracts, with Liquidity Provider tokens safely stored in the MultiSig wallet.
Moreover, to ensure complete transparency, all Growth Program actions will be visible and traceable on-chain using a blockchain explorer. In addition, a dedicated bot will relay every MultiSig wallet action to the IOTA Discord, informing the community. Monthly reports will be published to summarize the program activities.
In two years, IOTA token holders can vote to extend the program through a governance process. The IOTA cryptocurrency was trading 2.76% down at $0.1446, with a market capitalization of $486 million. Here is a look at the evolution of the IOTA ecosystem over the past few years.
