In a new announcement made on December 18, MetisDAO introduced its latest initiative - the creation of a fund to support the development of the ecosystem. The budget of this fund will be 4.6 million METIS coins, and the distribution of funds is planned for the first quarter of 2024. This announcement significantly increased the METIS price and the total token supply (TVL) on the L2 network.
Earlier in December 2023, the MetisDAO organization launched an ecosystem development fund with a budget of 4.6 million METIS (about $100 million at that time). Against this backdrop, network performance and the token price skyrocketed.
This was noted by DeFi expert Thor Hartvigsen:
Since December 18, 2023, the asset's price has risen from $22.4 to $83 at its peak, according to TradingView. The rate then rolled back to $79.2 at the time of writing:
Over the month, the increase was almost 308%. However, the asset price is still below the ATH set at $135 in March 2022.
The network's volume of locked assets (TVL) has also increased. Since the beginning of December 2023, the figure has jumped from $27.7 million to $51.17 million at the time of writing:
In his publication, Hartvigsen referred to the example of the launch of a similar initiative by the Avalanche project. According to him, thanks to the development fund, the price of AVAX has increased eightfold, so Metis’ current performance is not the limit.
According to the announcement, Metis developers expect the network to become the first Optimistic Rollup with a decentralized sequencer in early 2024. Distribution of funds from the project development fund is expected after the implementation of this initiative.
