Telos raised $8 million in funding before the launch of EVM to avoid token sales

The blockchain platform Telos raised $8 million in funding, led by ConsenSys and Polygon investor John Lilic. The funding was received before the launch of Telos’s Ethereum Virtual Machine (EVM) platform, ending the company’s ongoing bootstrapping program.

In addition to improving the liquidity of the ecosystem, Telos also aims to reuse recently obtained funds for the development and marketing of the platform, “without having to resort to TLOS token sales in the long-term bear market next year.” According to Telos chief architecture According to the teacher Douglas Horn:

“Although this [bootstrapping] Preserving our identity as an equal, autonomous community, it exposes us to the risk of continuing to fund our explosive growth through a prolonged bear market. “

In accepting Cointelegraph’s talk about giving up token sales, Horn stated that Telos aims to prevent centralized ownership, which will eventually lead to whale trading as the network matures. “Through fair community release and truly decentralized operations, Telos also avoids the highest level of regulatory review of any cryptocurrency,” he added.

This $8 million fund has been supported by five well-known cryptocurrency investors, who intend to help Telos with “deep industry connections and trading expertise” to help accelerate exchange listings and decentralized financial plans.

As part of the transaction, the investor received 1.7% of the total supply of TLOS tokens:

“When the transaction price of the TLOS token was 0.90 USD, the investor signed an agreement through the community liaison and agreed to pay a market price premium of 0.10 USD.”

This transaction resulted in the sale of a total of 8 million TLOS tokens, and no investor held more than 2 million tokens. At the same time, Horn believes that external investment will help Telos grow without risking “sacrificing token support or community sustainability”.

According to the company, funds are hosted on the Ethereum Gnosis safe on the internal network, which will be redirected to marketing through Telos Foundations, and developed through Telos Core Developers and Telos Liquidity Funds.

related: As the DeFi competition heats up, Ethereum rival Near has launched a $800 million developer fund

In order to surpass Ethereum in the DeFi market, the smart contract ecosystem Near Protocol received US$800 million in funding at the end of October to improve the decentralized financial capabilities of the ecosystem.

As Cointelegraph reported, Near’s funding includes a $350 million grant program that incentivizes developers to create applications on the blockchain. Approximately US$250 million has been allocated to existing ecosystem developers, while US$100 million has been allocated to initiate grants. The remaining 100 million US dollars will be used for regional plans in Asia, Europe and the United States.