Why we invested in xDAI Chain

Supporting the grassroots scaling solution.

“The ones who will win knows how to handle both superior and inferior forces” — Sun Tzu, Art of War

Today, we are announcing our investment and stake (no pun intended) in the xDAI network ($STAKE), an EVM POS chain that aims to address Ethereum’s problems of high gas fees and tx congestion.

It is capable of handling Ethereum’s transactional volume during peak hours while remaining 100% permissionless and compatible with EVM/Solidity.

Venture DAO will be operating a validator node, participating in the long term governance of the chain, and play a key role in securing xDAI’s token bridges to the Ethereum mainnet.

We believe xDAI to be one of the only immediately effective scaling solution for the Ethereum DApp ecosystem today.

Teams aren’t only looking for a technology solution but also a community of builders that are value and ethos aligned. You cannot buy community.

No amount of grants funding can win passion and true grassroots enthusiasm.

We believe that bridged sidechains to mainnet Ethereum will be abundant and that xDAI will play an important immediate role in scaling DApps and providing the most approachable solution for most Ethereum developers.

xDAI’s relationship with the Ethereum ecosystem

The project was initially launched during the first EthBerlin in 2018, and has since become a defacto solution for rapid transactions and lower value usecases. Some of xDAI’s earlier pilots include Austin Griffith and David Mihal’s work around ETHDenver’s foodtrucks (both during 2018 & 2019).

It’s also seen adoption by early OG Ethereum games such as Clovers Network by Billy Rennekamp, and SlugRoad by SlugKing. Uniswap v1 has also been successfully deployed on xDAI by the 1Hive team, with v2 in the works. Today, a range of projects are using/making migration to xDAI, including: DAOhaus, MetaCartel DAO, PowerPool, SpankChain and Aragon (1Hive).

For a more technical take addressing xDAI’s security concerns, read fellow Venture DAO member, Ameen Soleimani’s post on “Why xDAI (STAKE) deserves to win Reddit’s Scalability bakeoff challenge”

We have been impressed by their work so far in the last few years in the Ethereum ecosystem and are now proud to be part of the xDAI journey.

As always, it is a pleasure to also support Igor Barinov, who is also a founding MetaCartel Grants DAO member.

Great to have the backs of another fellow MetaCartel-er.

If you want to go fast, go alone.

If you want to go far, go together.

Long $STAKE! Long Igor!

Check out xDAI:

https://www.xdaichain.com

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