Master Ventures creates $30 million VC fund to support Polkadot projects

Asia-based private venture capital firm Master Ventures has launched a $30 million venture capital fund to support projects trying to integrate with Polkadot as well as other early-stage ventures building on the protocol, the company announced Wednesday. 

Polkadot is a single network that aims to enable multiple blockchains to work together. Each one of these blockchains is called a parachain and to be connected to Polkadot’s main network, they need to connect via a parachain slot, which are limited in number.

According to the announcement, Polkadot and Kusama — a standalone network focused on experimentation — aim to support the launch of more than 50 parachains in the next year and a half.

As part of the fund, Master Ventures hopes to support projects that are competing for these parachain slots.

The parachain slots will be auctioned off to the projects with the highest bids, and each project must hold polkadot (DOT) or kusama (KSM) depending on which protocol they want to use. When participating projects issue native tokens, they will then be "airdropped" to DOT or KSM lenders.