Definition ∞ An ecosystem reserve is a dedicated pool of digital assets or funds set aside to support the growth and development of a blockchain project or decentralized network. These reserves are typically managed by the protocol’s governance body and used for grants, developer incentives, marketing, and strategic partnerships. The purpose is to ensure the long-term sustainability and expansion of the project’s utility and community. It provides a financial buffer for various operational and developmental needs.
Context ∞ News often reports on the allocation of funds from ecosystem reserves, which can significantly influence a project’s trajectory and market sentiment. Transparency in the management and use of these reserves is a critical factor for community trust and investor confidence.
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