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Crypto News

BitDAO’s Mantle Core Unveils $200M Fund To Boost Web3 Development

Author

Jay Solano

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Reading time

2 mins
Last update

Author

Jay Solano

Tags

Category

Crypto News

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update


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Mantle Core submitted an application on the governance forum of BitDAO on February 26 to establish a $200 million fund for early-stage Web3 firms. The ecosystem fund intends to increase developers’ and Dapps’ use of Mantle’s network.

The BitDAO ecosystem created the Ethereum layer-2 network known as Mantle. The plan calls for a $200 million capital pool to be invested in the Mantle ecosystem over the following three years. BitDAO’s treasury would contribute $100 million in USD Coin, and another $100 million would come from “strategic venture partners” who would give external matching funds.

According to Mantle’s proposal, funds like Pantera, Dragonfly Capital, Folius Ventures, Spartan, Lemniscap, Selini Capital, Play Ventures Future Fund, Cadenza Ventures, and QCP Capital have shown interest in taking part.

If authorized, projects will have a 1:1 co-investment ratio between the Mantle EcoFund and venture partners. The ecosystem fund will focus on Web3 startups raising pre-seed, seed, and series A funding rounds.

Mantle representative stated that the fund’s projected active investment period is three years with a further two years of potential extension. The inaugural fund operator is suggested to be a joint venture between Mirana Ventures, Bybit, and BitDAO, with an investing committee comprising Mirana Ventures, Mantle, BitDAO, and Bybit members.

The spokesperson of Mantle Core stated that the fund aims to invest in over 100 projects implemented on Mantle and achieve a multiple on invested capital (MOIC) of 1.5x of cumulative performance during the fund’s lifetime

The EcoFund team’s operational expenses, such as sourcing, due diligence, legal, portfolio support, and fund administration, would be supported by a 2% management fee, which would be the “industry norm.”

Similar projects seek to promote adoption and innovation throughout the cryptocurrency industry. Polygon, a scaling solution for Ethereum, created a $100 million fund last year to enhance access to decentralized finance, onboard customers, and drive adoption.