Cosmos-based Protocol Raises $21M For Developer Rewards

Key Insights:

Phi Labs secured $21 million in strategic funding.

The raised capital will go towards building on Phi Labs protocol Archway, among other things.

Archway protocol built on Cosmos rewards decentralized application (dApp) developers.

Phi Labs, a contributor to Archway, on March 24, revealed that it raised $21 million in a seed funding round co-led by crypto investment firms CoinFund and Hashed.

Incentivizing Development Activity

Phi Labs is a contributor to Archway – an incentivized smart contract based on Cosmos. Archway rewards decentralized application (dApp) developers building on the network. Using the Archway protocol, developers can deploy cross-chain dApps and earn rewards for their contributions to the Cosmos network.

A blog post from the firm revealed that the $21 million seed funding round was led by investment firms CoinFund and Hashed.

Other participants in the raise included 1confirmation, IDEO CoLab, Figment, Blockchain Capital, Wintermute, Chorus One, stake.fish, Lemniscap, Cosmostation, and Hypersphere Ventures.

The raised capital will go towards staff expansion, product development, and building on Phi Labs protocol Archway. Furthermore, Phi Labs would use the funds to build software development tools to make it easier for third-party developers to build on the protocol.

Griffin Anderson, Founder of Phi Labs, said,

Putting Developers First

Archway allows dApp developers to build an app on its platform. At the same time, it starts to earn native network protocol rewards from inflation and gas rewards. This procedure rewards developers, thus increasing development activity on the network.

Archway aims to incentivize development by allocating its native ARCH token to dApps in proportion to the number of users they bring to the network. Developers can use those rewards the way they want, allowing dApps to provide incentives for their users without dipping into a little token treasury.

Archway is built on the Cosmos blockchain, which saw considerable growth over the last year. Cosmos has 38 different blockchains, more than 250 projects built on the ecosystem, and over $100 billion in digital assets on its network.

At press time, Cosmoss native token ATOM traded at $29.15, noting a 5.05% rise in price over 24-hours.