In a press release issued by the company, cryptocurrency exchange Kraken announced that it has donated $250,000 to the Ethereum Foundation in an effort to accelerate the development of Ethereum’s ongoing technical upgrades.
Kraken’s funding was part of the donation by five other crypto entities where each firm donated $250,000 for Ethereum’s ‘London’ upgrade. The total contribution amounted to $1.5 million by DeFi firms including DeFi protocols Uniswap and The Graph.
The funds were first transferred to the Ethereum Foundation, where they would later distribute them to various development teams. It was revealed that the funds would be activated as soon as eligible teams reach project milestones.
Other DeFi firms that have donated include DeFi protocols Compound, Lido, and Synthetix. Besu, Ergon, Geth, Nethermind and Nimbus are the three Ethereum clients that would receive this funding.
Jesse Powell, CEO and co-founder of Kraken, said in a prepared statement:
“We believe it’s our responsibility to give back to the open-source innovators who are building the next generation of cryptocurrency. That’s why we’re excited to work with the Ethereum Foundation to ensure developers receive funding from an increasingly diverse range of stakeholders.”
Previously, Kraken had supported various projects including providing grants to Ethereum’s funding platform Gitcoin, Bitcoin (BTC) development platform Brink, and payment processor BTC Pay Server.
The press release revealed by Kraken claimed that over 800,000 ETH have already been staked by Kraken clients to secure the Beacon Chain, the coming proof-of-stake version of the Ethereum blockchain.
Ethereum Foundation Executive Director Aya Miyaguchi noted:
“We strongly believe that collaborative efforts and support are the most sustainable way to benefit Ethereum in the long-term. This joint effort to support teams and builders that maintain a diverse set of Ethereum clients is not only impactful, but sets a great example.”
It was noted that Ethereum wanted to lessen the risk associated with the network’s over-reliance on a single entity and the donations would be contributed to the efforts on the same.