Author: Marco González

Editor: Randall Roland

Image adapted from BERK OZDEMIR

South Korea pleasantly surprised the EOS Community by backing a VC initiative. The nation ranks among the largest holders of EOS. Yves La Rose, CEO of the EOS Network Foundation, recognized the importance of the region by making a quick, unexpected detour just before TOKEN2049 in Singapore (at the end of September).

Yves' visit set the stage for a groundbreaking partnership with the city of Busan. The ENF finalized a formal agreement just ahead of the European Websummit and TOKEN2049 in London. The Venture Capital Alliance of Busan (VCAB), with the ENF as a founding member, was announced at the end of October. The new alliance is profoundly vital for EOS.

Another unexpected positive came mid-November when the ENF proposed funding for EOS Network Ventures (ENV). The new in-house VC expects to further inspire development.

Yves discussed the Busan (VCAB) partnership on Fireside Chat (see clip). VCAB comes as an unofficial agreement in a Memorandum of Understanding (MOU). It signals intent for things like development and planning. EOS entered the non-binding MOU with the city of Busan on October 28.

Recent EOS innovations provide inspiration for the crypto space and future municipal partnerships. Before the ENF-Busan agreement, industry MOUs were all given to centralized exchanges and traditional VC funds:

Busan put the alliance in place to act as a filter for new crypto initiatives. As one of the founding members, the ENF has the privilege of vouching for new members of the VCAB [04:14]. Between establishing a new dynamic for innovation and municipal partnerships, as well as acting as a gatekeeper, the ENF has strengthened EOS' position as a leader in the space.

Image from EOS Network

South Korea as a whole is pro-crypto. It has also been a long-standing, key player on EOS:

Busan wants to become a first-rate, global crypto hub. Youthful minds and favorable regulations characterize the city.

Existing blockchain infrastructure has matured to the point that it no longer meets the needs of the space. Partnering with a global blockchain hub is certain to prove advantageous moving forward. The Busan MOU may even match the coveted first-mover advantage.

The agreement with Busan puts EOS in a unique position that few blockchains enjoy. EOS now aligns much better on a global, competitive stage. The pieces are in place for the ENF to build a 4th (VC) pillar to go along with existing strengths, that of Community, Technology, and Funding.

The agreement with the city of Busan has been deemed so substantial as to rank among EOS’ greatest achievements. It’s amazing how the ENF, just a year old and born out of the core community, can attract so much interest. Read more about the VCAB benefits on the ENF’s blog, ENF Signs MoU with Busan Metropolitan City to Establish Venture Capital Alliance of Busan Blockchain.

The ENF also agreed to explore all that South Korea has to offer the crypto space. That includes working with regional businesses, tracking capital, and anything that fits into the ecosystem. Few can match South Korean leadership in blockchain (and tech in general).

Yves points out how financial benefits are a mere aspect of what comes with partnering with a VC. Benefits like improved infrastructure and exchange access can take EOS to new heights. The city of Busan is, itself a profound asset for EOS, deemed a:

Estimates put the Busan blockchain-based ecosystem at 400+ projects. Yves noted that this ecosystem is growing through a mayoral initiative positioning Busan to become one of the first, substantial hubs for cryptocurrencies. As a founding member of VCAB, EOS has the distinct honor of helping lead blockchain innovation in the city.

Within days of the VCAB partnership, the ENF made another surprise announcement. A bit controversial, but quickly passing nonetheless, was funding for EOS Network Ventures (ENV). The organization expects to be an independent funding arm playing the role of community VC. ENV Fund (eosio.fund) is initially funded with 68,277,906 EOS (see multisig transaction ref 1,2).

The ENF does currently provide funding through various grants. However, between working groups, leading development, maintaining a public presence, and ensuring security, the establishment of a fully-focused VC seems like the right way to go. VCs need to nurture young companies. A community organization that can dedicate its entire operation toward helping ensure the success of companies from startup through self-sustainment will prove invaluable to the EOS Network.

A few community members voiced their opinions in response to the speed at which the new funding allotment took place. Helios, Eden Capital, and GenerEOS all took to Twitter to ask for clarity. Opposition was generally unsustained, as the ENV is seen as an overall positive.

Missing from the EOS Network in recent years has been VC support (as promised by B1). Lack of adequate funding led to unfulfilled ideas and initiatives until the ENF demonstrated a high-level of commitment. Funding from Pomelo, Helios, and ENF grants already fuel unparalleled development in the crypto space. However, the money that backs top crypto chains far exceeds anything EOS developers have to work with. The ENV and VCAB help EOS compete with top blockchains and target mainstream adoption.

Anyone who obtains an EOS wallet and completes a few transactions knows the true power of crypto. No-cost and virtually no fees, combined with half-second transaction times on a blockchain that has never been hacked, is a game changer. EOS has been around since 2018, but an unfortunate partnership led to negative public perception and stalled development.

Every month under the ENF’s leadership sheds new light on EOS’ potential. EOS demonstrates real innovation that few layer-one blockchains can match. Innovation manifests both from the ENF’s guidance and from freestanding community members. With the 4th ENF pillar in place, Web3 development comes to EOS in a big way.