- The Stellar Community Fund 2.0 is a new version that offers something new
- SCF is going through a structural change that will make it fully optimized
- The new version is designed to be better for participants
Stellar Lumens News Today – with the option of an open-source solution, it becomes possible for Stellar and its community to work together and create a 100% decentralized network. By doing this, the network will be innovating diverse solutions, that can’t be discovered alone. In a bid to fulfill the goal of better financial inclusion for all people, SDF knows that monetary support is essential.
In the long run, Lumens are shared via grants and funds to projects and teams independently. The purpose is to support developers’ projects. They’ve rounded up five funding sessions and have worked well. On each occasion, they have helped to tweak and adjust the funding process.
The New and improved Stellar Community Fund 2.0
Stellar took to twitter and stated:
“In the past, we launched the SCF (Stellar Community Fund) to help fund community projects. Today, the SCF will be upgraded to SCF 2.0 (Stellar Community Fund 2.0). This option is designed to offer better opportunities for our community.”
According to cryptocurrency expert Sydney Ifergan, via a tweet:
“Bernard Shaw cited that those who can’t change their mind can’t change anything. The SDF (Stellar Development Foundation) always knew change is constant. No wonder they are introducing SCF 2.0.”
The SCF is going through a structural change. This is because the SDF knows the fund hasn’t been optimized fully to benefit the community. They also observed that voting was straining the community and making it susceptible to bad actors. The change is necessary if the existing system must be refined. Two separate voting rounds triggered irregular participation and voter fatigue.
It Reduces The Obligation of Participating in Voting
The awards are balanced between two categories in projects. The goal is to avoid overpaying or underpaying a particular project. It is paramount to be businessworthy. It is also essential to develop smaller and experimental projects. The new changes to the protocol will bring a nomination panel and launch a quadratic voting system. This reduces the burden of participating in voting. To demonstrate the concept, the SDF has created a test voting interface. They have provided an equation: Cost to voter = (number of votes) ². The more you care about the project, the more you’ll be willing to invest in voting. SCF 2.0 has funds to offer different projects. Previously, the participants fell in two buckets. Including:
“One that houses users ready to build their business. The other contains those who are experimenting in the ecosystem. To assist the above audiences, the SCF will be split into the Seed Fund and Lab Fund.”