Skip to main content

Public Funding

Apps Funding Pool and Public Funding Mechanism​

One of the most critical components of Status Network is the apps funding pool, designed to provide sustainable financial support for applications built on the network. Unlike traditional blockchain ecosystems where developers rely on grants or short-term incentives, Status Network ensures continuous funding through a self-sustaining mechanism driven by network activity and TVL.

Why Public Funding Matters​

Public funding is essential to ensure that builders have access to capital without dependence on extractive external funding mechanisms. The Status organisation has a long-standing history of investing in open-source projects and decentralised infrastructure, reinforcing its commitment to public goods. The apps funding pool extends this ethos by providing a decentralized, community-driven allocation mechanism where developers can receive financial support directly from the network itself.

How the Apps Funding Pool Works​

  • Funded by Native Yield and Fees: A significant part of the yield generated from bridged assets (ETH and DAI initially) and from the native DEX swap fees flows directly into the funding pool.

  • Governed by Karma Holders: Allocation of funds is determined by Karma token holders, ensuring a community-led decision-making process: if the community loves your app, you'll get funding.

  • Transparent and Fair Distribution: Initially, funding will be capped at a limited number of recipients to maintain quality control, but as the pool grows, more projects will be supported.

  • Aligning Builders with Network Growth: Developers who actively contribute to network usage and adoption will receive more voting power in the form of Karma, allowing them to vote for themselves and reinforcing the incentive to create valuable applications.

This mechanism ensures a continuous, non-extractive source of capital for builders, allowing them to focus on creating successful applications.