IOTA and Shimmer Have Voted on Financial Grants for Projects

The communities of IOTA and Shimmer (SMR) have decided to transfer a larger share of the reserves to the Tangle Committee. This committee is to decide on financial grants for external projects.

Largely unnoticed by the public, two referendums were held at IOTA and the side project Shimmer (SMR). The proposals put forward were accepted by an overwhelming majority, as the IOTA Foundation announced in a blog post. In essence, it was a question of providing 10 million IOTA (current value around $1.67 million) from the reserves for the Tangle Committee. This committee has the power to award project grants to further develop the ecosystem, including Shimmer.

However, it is striking that the two votes met with little response from the community. The turnout for proposal IGP-0001, which allows the transfer of almost 20 percent of the reserves from unclaimed tokens, was just over 5 percent. The transfer to the Tangle Committee is to take place when IOTA integrates the Ethereum Virtual Machine (EVM) into the mainnet, following the example of Shimmer. A date for this is not yet known.

Proposal SGP-0006 had a 7% voter turnout. The focus here was on giving the Tangle Committee more leeway. For example, the committee should now be authorized to sign off on the awarding of financial grants to external partners. Even well-known IOTA critics have not yet reacted to the referendums.

Things will only get exciting when it comes to deciding on financial aid for external partners in the future. IOTA is under scrutiny here due to its repeatedly opaque deals. However, the low level of participation in the current rounds of the incipient self-administration process casts doubt on the controlling power of such decisions.

Read more about IOTA and Shimmer’s decision to vote on grants and find the most important financial news of the day with our companion app Born2Invest.

Conclusion: Shimmer (SMR) at an all-time low – IOTA also in a deep price crisis

Investors who take a sober look at the price trends of IOTA and Shimmer have reason to mourn. Shimmer is currently trading at around $0.035 and has thus reached an all-time low just over a year after its stock market debut. The hoped-for impetus from the integration of the Ethereum Virtual Machine (EVM) in September therefore failed to materialize. The low may also be explained by the fact that priorities in the ecosystem appear to be shifting back towards IOTA.

However, the inflationary hammer decided on single-handedly by the IOTA Foundation has permanently spoiled the mood of investors there. At around $0.16, IOTA is also currently trading at a level that was only temporarily undercut at the beginning of 2020. It is therefore easy to understand why even referendums as an expression of co-determination leave eligible IOTA and Shimmer investors cold – the air is simply out.

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(Featured image by Moose Photos via Pexels)

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