A newly established blockchain complex Hangzhou- a Chinese city notable for its enthusiasm to innovation, has staked a large sum of money to finance startups in the country. The money, which is estimated to amount to millions of dollars, has been dedicated to offering subsidies to startups in the blockchain sector in an effort to attract talented individuals and investors in the market.
On Thursday, a policy guide explaining how the funds will be distributed was shared to the public through the official chat account of the Xiong’An fund (also referred to as the ‘Grand Shores Fund’), known as the WeChat account. Xiong’An fund is the main operator of the blockchain industrial park. Both the blockchain complex and the Grand Shore Fund were established back in April.
The policy guide
The policy guide explained that the purpose of the incentive was to; enthusiastically breed high-level talents both locally and abroad, put to effect precise supply of policies, speed up the development process of the blockchain industry, and enhance supportive policy chains which include equipment subsidies, talent introduction, and capital guidance. At the end of the day, the entire process is aimed to achieve an effective and polished policy which supports the development of the Blockchain industry.
The establishment of this multi-million dollar fund stands out for two main reasons; the quantity of funds involved and more significantly is the involvement of the city government in the initiative with a massive 30% contribution of the total funding. The contribution, which surmounts to approximately $400 million will operate as a guided fund and will serve to ensure that all promising blockchain projects are invested in heavily.
It is unclear at the moment, however, the criteria that will be used to determine whether or not an individual has reached the threshold to be termed either eligible for the funds or not.
Moving the blockchain agenda forward
The act by the Hangzhou city government is the latest move by Chinese government entities to foster the blockchain development agenda in the country. This move comes barely weeks after a plan to establish a blockchain funding center was abolished by the government- led investment association due to leadership wrangles. In the same wave, the same government-led research body launched a blockchain-as-a-service (BaaS) platform for identity and supply chain tracking. At the basic level, the project is expected to store statistical data as well as record any significant change to the same data
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