- Mantle Core has submitted a proposal for discussion on BitDAO’s governance forum.
- The proposal seeks to establish a $200 million fund to promote Mantle’s adoption.
Mantle Core recently submitted a proposal on BitDAO’s governance forum for discussion among the DeFi protocol’s community members.
The proposal seeks to establish a $200 million ecosystem fund to promote the adoption of Mantle among developers and decentralized applications (dApps).
Mantle is a high-performance Ethereum layer-2 network developed by the BitDAO ecosystem with aligned strategic interests.
Fund will be used to promote Mantle’s adoption among dApps and developers
As per the proposal submitted for discussion in BitDAO’s governance forum, the Mantle EcoFund 1 would require a seed capital of 10 million USDC from the BitDAO Treasury, followed by an additional $100 million.
These funds would be matched 1:1 by Mantle which plans to co-invest with strategic venture partners, bringing the capital pool to a whopping $200 million. The proposal read,
“Ecosystem funds have historically served as an important catalyst of growth for new emerging protocols and ecosystems, in particular, developer and dAPP adoption of a new protocol.”
According to the objectives laid out in the proposal, the fund would be used to encourage participation from reputable venture funds into the Mantle ecosystem.
The fund would also be used to maintain consistent returns and performance to improve the sustainability of Mantle.
The fund would be deployed within the Mantle ecosystem over the next 3 years from the Mantle EcoFund and Strategic Venture Partners. The investment period has been set as 3 years, with an optional 2-year extension down the road.
The incentives for the above-mentioned strategic venture partners include 1 to 1 matching of up to $500,000 per project, in addition to a 20% share of the fund’s net returns.
As for operators, the maximum operating and legal costs will be capped at 2% of assets under management (AUM) annually.
According to data from CoinMarketCap, BitDAO’s native token BIT has surged by over 3% in the past 24 hours. The token’s daily trading volume skyrocketed 49% following Mantle’s proposal.
