1. Home
  2. News
  3. Cryptocurrency
  4. Sia Foundation announced as a non profit entity to accelerate slow growth of Sia Protocol

Sia Foundation announced as a non-profit entity to accelerate slow growth of Sia Protocol

Photo of: Dennis Ramos
by Dennis Ramos

Sia co-founder on September 8th announced on Reddit its decision to create Sia Foundation, a non-profit organization that would apparently kickstart the protocol’s slow growth pathway. Going back 3 years, on May 10th, 2017, Sia’s co-founder David Vorick criticized the Ethereum foundation for slow governance of the protocol leading to centralization efforts of an otherwise decentralized platform. What is interesting here is that the founder’s project which is Sia’s new proposal is also going on the same lines. Hard Fork is considered the best way to do this.

So no nearly 3 years later, the newly proposed Sia foundation would help in bringing a speeding up to the slow growth process. Champine will be appointed the president of the non-profit organization. He will be seeing what improvements need to be made on the platform’s key software. The new President also intends to rally for coin’s adoption at larger levels, augment security among the key stepping stones of the ecosystem and lastly promote the concept of a decentralized way of storing files. 

The plan and motives are clear, but in order to achieve whatever it has set for itself will require funding from a hard fork. According to Champine, if hard fork funding is received, it will let Siacoin, the blockchain’s native token, increase from 30,000 to 60,000 with the extra coins being held in the Foundation fund. The funds held in the foundation have also been allocated in an advanced manner. 25% of the funds will go towards funding towards community-focused activities which will include grants, hackathons, and other bounties. 

Other than increasing the Siacoin supply, the entire process will also provide yearly inflation of up to 10.4%. In order to cap the effects of high inflation, the new proposal talks about burning extra coins that are after the foundation has taken its share of 5% of the supply. Now that the discussion has reached a new level, the community has proposed a disintegration of the foundation with Nebulous. Champine might also be looking at liquidating his entire stake on Nebulous so that he can concentrate on Sia Foundation. 

Now what we call a twist of fate, Sia seems to be facing the same thing it accused Ethereum foundation three years ago. He went on different important platforms to lay out the prevailing tendency of the foundation. In one of his posts, the co-founder stressed that the Ethereum Foundation has indeed taken full control of the protocol’s future. This also includes the right to make wide-ranging changes on coin supply and the consensus algorithm. Although back then, this might be a less favorable option but we are sure Sia now realizes that it is perhaps the best way to go about and click. 

Its latest Reddit feature talks about how the goals of the foundation are important and many. These goals include maintaining core Sia protocols and consensus code, supporting developers who are building on top of Sia and its protocols, promoting, and facilitating partnerships everywhere. It intends to implement hard forks to lead the community and also so that users can easily acquire and store its native token.