Ethereum
SnowBridge seeks $6 million in funding
Snow bridgea trustless cross-chain bridge designed to connect Polkadot to Ethereumis seeking approximately $6 million in DOT token funding from the Peas community.
The company’s proposal said the funds were intended to ensure Snowbridge’s long-term success, aligning the team’s incentives with Polkadot Communityand provide financial guarantees to bridge users.
Treasury Proposal
According to proposalSnowBridge is looking for 999,568 DOT, the equivalent of $5,797,500. The fund includes an immediate payment of 191,379 DOT (about $1.2 million) and a two-year allocation of 323,275 DOT (nearly $1.9 million).
In addition, 161,637 DOT ($937,500) will be paid over three months. The remaining 53,879 DOT ($312,500) will be paid monthly from September 2024 to February 2025.
SnowBridge said the funding aims to improve user assurance and maintain the bridge for future growth and adoption. He added:
“This proposal finalises payments for engineering milestones completed in 2024, operating costs and crew bonuses. It also introduces additional premium alignment controls and medium-term insurance guarantees for the bridge.”
Notably, this request follows the end of the two-week testing period for the Ethereum-Polkadot bridge. The bridge uses proprietary signatures from validators on both networks, ensuring transparency, permissionlessness, and auditability. The first version supports ERC20 asset transfers, with plans to include arbitrary messages in the future.
Meanwhile, Colorful Nation, an agent of the Web3 ecosystem, advised SnowBridge to prepare some sort of insurance fund in case the platform is exploited. He stated :
“The world has witnessed dozens of bridge hacks and it is obvious that the ’empty spend’ mechanism should be used in the tragic event that the bridge presents some vulnerability.”
The company also noted that the proposal should be coupled with “compelling liquidity incentives to move Ethereum assets (WETH, WBTC,…) to Polkadot.”
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