ICON commits $200 million to Interoperability Incentive Fund

By January 14, 2022Layer2
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The ICON Foundation has announced plans to launch an Interoperability Incentive Program for 200 million ICXs, approximately $200 million at launch. The foundation supports the development of the ICON network, the largest public aggregation chain in Korea. The foundation said it hopes the program will incentivize the ICON community and its partner network to adopt ICON’s Blockchain Transfer Protocol, or BTP.

The incentive program aims to distribute up to 200 million ICX tokens over five years, with the main funding coming from the ICX reserve allocation raised during the 2017 token sale. ICON intends to attract development teams from other ecosystems to explore cross-chain exchange opportunities for BTP.

According to the company, most of the revenue is planned for developing new high-quality use cases for the BTP technology, while a portion of it will be used to incentivize long-term adoption of BTP within existing protocols and communities.

The integration of BTP with many blockchains is currently underway, including Binance Smart Chain, Polkadot, Kusama, Moonriver, Astar Network, Edgeware, Acala, NEAR, and Harmony.

related: $300M Incentive Program Backs 100% Harmony (ONE) Price Increase

ICON claims its incentive program is the first fund fully dedicated to interoperability. Min Kim, the founder of the ICON project, said in a statement that the goal is not to “split the existing development community,” but to create opportunities for cooperation between them in a second-tier ecosystem.

Scott Smiley, head of strategy at the ICON Foundation, told Cointelegraph that security and decentralization are not the only factors leading to adoption, saying:

“We believe that once users and developers interact with BTP, they will recognize the value of a chain-agnostic, scalable, and uniquely secure protocol. This incentive fund will provide the market with the “push” needed to start snowballing adoption.”

Recent ICON roll out ICON 2.0, introducing an upgraded core blockchain engine, support for Java smart contracts, interoperability technology BTP and updated token economics.

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