Crypto-investors are pushing each other to actively participate in their funded networks.
Since last fall the segment of the blockchain world discusses the possibility of "generalized mining", the idea of which is that of a decentralized network has attracted users and his resources to run a variety of services for remuneration. For the investment community that means his direct involvement in funded networks.
CoinFund and Placeholder jointly launch an initiative Grassfed Network, designed to demonstrate the desire to help their projects to take advantage of network effects.
"Together with the Placeholder, we discuss the use of generalized mining as a differentiated strategy for the cryptocurrency funds to enable them to interact directly with the networks and get profit. Under the Grassfed Network services we mean transaction processing, staking, software, content curation, active governance, and many others."
Later, CoinFund founder Jake Brukhman added:
"Generalized mining allows investors to add tangible and concrete value to their networks through self-adjustment, ensure liquidity and reduce operating losses. In addition, crypto-investors better anyone will be able to interact with the network in the early stages of its development".
Grassfed Network will also provide users the ability to use new protocols. CoinFund already has supported living networks, such as Livepeer, Steemit, Compound, and others.
Placeholder, in turn, interested in protocols that allow different types of stakeholders to participate in networks in different ways. Thanks to the support of Aragon, MakerDAO and Decred, the fund has continuously invested in optimizing the cooperation.
Special favor, according to Placeholder, can be Decred. The protocol was conceived to improve bitcoin governance by sharing authority over the network across stakeholders. The owners Decred will be able to use tokens to participate in the management and Placeholder will delegate their tickets to Grassfed’s voting service, marking an ongoing collaboration across the two funds.
According to some crypto watchers, putting voting into the same category as hashpower expanded the definition of "mining", but CoinFund is configured to push this idea even further. For example, a company wants to putting crypto into on-chain loan-making services; the first such project will be Compound. Devin Walsh, an analyst at CoinFund, said:
"We see any activity that is compensated with on-protocol rewards denominated in network assets."
Tushar Jain from Multicoin Capital supported the idea of their colleagues:
"Our foundation is actively involved in the network. We believe that crypto investors who typically invest in protocols will find it’s a best practice to also set aside capital for supporting the network."