The native token of a little-known Ethereum (ETH) scaling solution has soared by triple digits amid the announcement of an incentive program.
Ethereum layer-2 Metis (METIS) is up nearly 20% over the past 24 hours and up 261% in seven days from December 20th’s opening price of $25.67.
METIS is trading at $92.58 at time of writing.
The explosive rise in the token’s price comes a little over a week after the Metis crypto project announced the launch of the Metis Ecosystem Development Fund (Metis EDF).
“The Metis Ecosystem Development Fund (Metis EDF) is a 4.6 million METIS fund dedicated to accelerating adoption in the Metis ecosystem. The Metis EDF will be used to fund grants for new project deployments, product development for existing DApps, Builder Mining rewards, sequencer mining, and more.”
At the current price of $92.58 per METIS the fund’s allocation is currently worth nearly $426 million. The Metis Ecosystem Development Fund is expected to commence disbursements in the first quarter of 2024 and the funds will be distributed over the course of a decade.
The lion’s share of the funding, 65.4%, will go to sequencer mining while 34.6% will be allocated to ecosystem funding. Sequencer mining is the process by which various parties stake their tokens to earn mining rewards while assisting in block production.
Among the potential beneficiaries of Metis EDF’s ecosystem funding include sectors such as decentralized finance, Real World Assets tokenization, decentralized identity and privacy solutions, blockchain gaming and metaverse applications and prediction markets.
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