The Solana Foundation, a non-profit organization committed to promoting the adoption, utility, decentralization, and security of the Solana network, has recently announced the expansion of its capital deployment strategy. The new strategy includes convertible grants and investments to support the Solana ecosystem.
Since its establishment in 2019, the Foundation has focused on providing grants to non-commercial public goods projects on Solana. These grants have facilitated the creation of educational resources for developers, NFT infrastructure, and alternate validator clients, among other initiatives.
The Solana Foundation has taken steps to provide more extensive support to the Solana ecosystem by introducing convertible grants, which will convert into investments once specific milestones are met, and investments into profit-making ventures building on Solana that align with the Foundation’s values and commitment to public goods. The profits earned from these investments will be reinvested in the grants program to ensure continued support for developers in the future.
Although the Foundation continues to prioritize open source development on Solana, it acknowledges that closed source products can also contribute to the ecosystem’s public goods. The addition of convertible grants and investments will allow the Foundation to extend its support to more projects, including those that aim to generate profits. This move will expand the Foundation’s reach and enable it to provide assistance to a broader range of initiatives that can have a positive impact on the Solana community.
The Solana Foundation is cautious and intentional in its approach to investing in for-profit enterprises, and it will only invest in those that uphold its values and exhibit a dedication to public goods in the Solana ecosystem. By broadening its capital deployment strategy, the Foundation aims to facilitate the development of a wider range of funding alternatives in the Solana community, and promote the expansion of adoption, decentralization, utility, and security of the Solana network.