Lido Finance allocates $6 million to develop the Ethereum ecosystem

Members of Lido Finance staking service approved allocation of 2 million LDO (~$6 million) to support Ethereum under the Protocol Guild. The framework supports autonomous mechanisms for recruiting, retaining, and remunerating developers.

As an added bonus to the start of @EFDevconnect, we’re pleased to say the proposal for Lido to pilot the Protocol Guild has passed, with 2,000,000 LDO allocated towards funding Ethereum protocol contributors 🏝️

More information can be found here: https://t.co/VWCAdxqoNA

— Lido (@LidoFinance) April 19, 2022

Protocol Guild is the epitome of a new approach to financing public goods, focusing on development L2.

According to the participants of the structure, alternative solutions in the form of grants and retroactive financing programs possess significant restrictions. They are not forward-looking and do not provide value to individual contributors because their design prioritizes project and team development.

The Protocol Guild was formed by over 100 members of the Ethereum Core protocol from 21 different teams and 9 organizations. Only 30% of them work for the Ethereum Foundation.

Participants will request sponsorship in the form of tokens from protocols, which will allow them to count on more rewards in favorable conditions. The distribution is planned to be carried out through a smart contract with a vesting period.

Recall that in April Lido Finance announced implementation of distributed validator technology and a scoring system to increase the decentralization of Beacon Chain.