In June, the Ethereum Foundation and Reddit revealed that they were in search of a scaling solution through a competition. Unlike other competitions, the winner of this would receive no prize. However, the Maker Foundation stepped in to award the winner.
Reddit And Ethereum Foundation Receives Backlash
Despite being one of the largest crypto networks, the Ethereum network has had difficulties regarding scalability. The platform has been time and again called out for its scalability issues, however, Ethereum 2.0 will reportedly address the issue keeping in mind privacy.
Recently, the prominent social media platform, Reddit also looked into the scalability of the network. Last month, Reddit revealed that the social media giant had collaborated with the Ethereum Foundation for “The Great Reddit Scaling Bake-Off”. In this competition, users were expected to present their Ethereum scaling projects. These solutions were also required to bring in Community Points to the mainnet.
Elaborating on the intention of the competition Reddit further detailed,
“Our goal is to find a solution that will support hundreds of thousands of Community Points users on mainnet today, and can eventually scale to all of Reddit (430 million monthly users).”
After listing a series of requirements that every project must entail, Reddit revealed that the winner of the competition would receive no sort of prize, but just fame. However, both the Etherum Foundation and Reddit were called out for getting work done for free. In more recent updates, prominent DeFi platform, Maker Foundation announced that it would award the winner a total of 25,000 DAI.
The participants are required to submit a project that upholds, scaling, decentralization, usability, interoperability as well as security. The last day for the submission of the projects is 31 July 2020. The winner would reportedly by contacted by the Maker Foundation after Reddit’s announcement at the end of the month. The Maker Foundation further wrote,
“We hope our bounty incentivizes those who have been working on a solution that could benefit hundreds of millions of Redditors, but have been on the fence about submitting ideas.”
Furthermore, the Maker Foundation also believes that the competition curated by Reddit and the Ethereum Foundation could instigate crypto adoption.
Maker Dethroned
Maker was not only the face of the DeFi space but also dominated it for a long time. However, soon after the lending platform Compound Finance rolled out its governance token, Maker fell behind Compound in terms of the total value locked. At the time of writing, Maker had a total of $474.8 million USD locked in DeFi and the platform was looking at a 5.60 percent increase. However, Compound was not far ahead as it had a total of $590 million with a 2.14 percent drop.
