Why wait for one of your investments to launch a new feature when you can just build it yourself?
The recently announced extension for Delphi Digital aims to do just that. The cryptocurrency investment, media and research firm is now adding a Delphi Labs division that will focus on helping grow its Ventures portfolio.
The initiative will help expand Delphi’s existing development division, which currently has nine employees, according to Delphi Digital analyst Jose Macedo. Before separating from Research, the Labs team helped develop tokens for several projects and is currently leading a review of Aave’s $ 1.4 billion security unit.
Macedo said the driving force behind the company’s new wing is the lack of development resources and space smart contracts.
“I think what led to this model was that we were working on pilot projects and seeing how much work needed to be done and that there was not enough talent for that. We realized that IP, we have connections, can be used everywhere.”
While Labs remains focused on token and governance offerings for now, it will ultimately help incubate smaller projects that are likely to release brand new protocols that are Delphi-branded in the two-year schedule specified in the announcement.
Managing big money
Delphi isn’t alone in playing a more active role in the protocols it’s investing in. There has been a lot of discussion recently about how venture capital funds will interact with autonomous decentralized entities, and some cryptocurrencies are opposed to preferential rights (and / or conditions for investing in token). Investors, while others say that funds, like all other participants, are welcome to become part of good government
Even now, the Protocol’s founders still strongly support venture capital participation, especially when companies make significant contributions. Two weeks ago, Uniswap founder Hayden Adams argued a lot in a long-running Twitter series:
Likewise, Synthetix earlier this month announced a disbursement of $ 12 million from three venture capital funds, indicating that organizations will help develop protocols and participate in governance wherever possible.
This is the model that Macedo wisely said: Projects can benefit from Delphi research and development, and Delphi in turn will see an investment boom:
“We will only work on projects that we intend to pursue for several years, and our goal is to be a long-term contributor with individual incentives.”