The world’s second largest cryptocurrency Ethereum experiences ongoing challenges. Its exchange rate has plummeted, and the adoption is far from desired. However, the large Ethereum community works to make things better. The most prominent attempt so far is by Panvala, a decentralized foundation that helps fund the work that the whole Ethereum community depends on.
Omar Faridi, Digital Asset Live new columnist and contributor has interviewed Niran Babalola, the founder of Panvala.
Babalola, a Stanford University computer science graduate and product engineer at ConsenSys, a New York-based organization focused on supporting the ongoing development of Ethereum (ETH), revealed how he is developing a sustainable model for funding blockchain projects and attracting talented developers to the evolving Ethereum ecosystem.
Omar Faridi: What are the main challenges associated with acquiring adequate funding for the Ethereum project?
Niran Babalola: “Projects on the Ethereum network find it more rewarding to compete rather than cooperate, and reward themselves with a new token on their new blockchain. To attract and retain the best talent in the industry, it’s not enough to just fund work. The rewards must be competitive.
Different organizations with varying fundraising methods have emerged, however, none provide a sustainable solution. For example, Ethereum Foundation’s outline is extremely cautious, and has a limited amount of Ether, and no source of income.
As a result, many developers who rely on Ethereum Foundation funding are unhappy with the current state of affairs—some are even worried about how they’ll pay their rent.”
Omar Faridi: How will the Panvala project help the Ethereum ecosystem?
Niran Babalola: “Panvala is effectively building a decentralized version of the Ethereum Foundation. We want to make sure that the kind of work the whole Ethereum ecosystem depends on receives a sustainable flow of funds.
Instead of splintering and dividing the Ethereum community, Panvala unites it. Panvala provides an atmosphere where developers have sufficient funds to work on projects they care about that ultimately improve the community they believe in.
Many projects Panvala has already awarded grants to are working to strengthen, scale and secure the Ethereum network, including Ethereum 1.X, Ethereum 2.0, and Layer-2 scaling.”
Omar Faridi: Why does the Panvala project use a token, instead of using maybe Ether or fiat currencies for funding?
Niran Babalola: “Introducing the PAN token provides a unique incentive system. Traditional nonprofits employ a few who are responsible for and get rewarded for bringing in donations.
They also typically fundraise in U.S. dollars or Ether and allocate those funds to the work that aligns with the mission of the foundation. Every Panvala donation received or grant issued is done in PAN, so as to strengthen the token demand and incentivize fundraising for all token holders.
The more donations come into Panvala, the more demand there is for the PAN token; the process is galvanizing.”
Omar Faridi: Why should talented application developers leave their current work and start developing on the Ethereum platform when there are currently major funding issues? How will the Panvala project help attract more talent?
Niran Babalola: “The current lack of funds for projects being developed on the Ethereum platform has deterred talented developers. Instead of joining a community working towards a common goal, developers turn to well-funded projects that compete with Ethereum.
Panvala is the solution to attracting talented developers, because it provides teams with grants every three months that ensure project funding. The deciding factor for developers will no longer be which project pays the bills, but rather which project’s scope supports a strong, existing community, like Ethereum, the future to an open, decentralized financial system.”
Omar Faridi: What are the main long-term and short-term goals for the Panvala initiative?
Niran Babalola: “Right now, we are focused on getting as many individuals as possible involved with the Panvala community. We want to attract more developers to apply for grants. On the other side, we hope to motivate more people and companies to become donors on the Panvala platform.
In the long term, we’d love to provide more ways for individuals to support Panvala. Instead of just donating from their own pockets, we want them to be able to earn donating credits while they shop at businesses who donate to Panvala.”
Omar Faridi enjoys writing about crypto regulations, quantum resistant blockchains, Ethereum, Bitcoin Core developments. His academic background includes an undergraduate degree in Computer Science, with a minor in Mathematics from the University of Nevada, Las Vegas. Omar Faridi is also a Master of Science degree in Psychology from the University of Phoenix. He was engaged in independent study programs focused on public-key cryptography and quantum computing.
Mr Faridi’s professional work experience includes working as an application developer for the University of Houston, data storage specialist at Dell EMC, and as Teacher of Mathematics in the United States, China, Kuwait, and Pakistan.