Mantle Core’s Ambitious $200M Proposal Sparks Web3 Investment Excitement

February 27, 2023 - Around 4 mins mins to read

Key Points:

Mantle Core submitted a proposal on BitDAO’s governance forum to create a $200 million fund dedicated to early-stage Web3 startups.
Ethereum scaling solution Polygon launched a $100 million fund aimed at improving access to decentralized finance, onboarding users and accelerating adoption.
EcoFund has assembled a team of experts who will be responsible for sourcing and vetting potential investments, as well as providing portfolio support and fund administration services.

Mantle Core submitted a proposal on BitDAO’s governance forum to create a $200 million fund dedicated to early-stage Web3 startups. The ecosystem fund aims to boost the adoption of Mantle’s network among developers and Dapps.

BitDAOs Mantle Core proposes 200M for Web3 fund

Mantle is an Ethereum layer-2 network developed by the BitDAO ecosystem. According to the proposal, a capital pool of $200 million would be deployed within the Mantle ecosystem over the next three years. BitDAO’s treasury would provide $100 million in USD Coin USDC, while another $100 million would be supplied by external matching capital from “strategic venture partners.”

Funds that have expressed interest in participating include Dragonfly Capital, Pantera, Folius Ventures, Play Ventures Future Fund, Spartan, Lemniscap, Selini Capital, Cadenza Ventures and QCP Capital, according to Mantle’s proposal.

If approved, the Mantle EcoFund and venture partners will participate in projects with 1:1 co-investment ratio. Web3 startups raising pre-seed, seed, and series A round will be targeted by the ecosystem fund. Management fees would be “industry standard,” with a 2% fee to support operational expenses of the EcoFund team, including sourcing, due diligence, legal, portfolio support and fund administration.

Across the crypto industry, similar initiatives aim to drive adoption and innovation. Last year, Ethereum scaling solution Polygon launched a $100 million fund aimed at improving access to decentralized finance, onboarding users and accelerating adoption.”

The fund is proposed to have a three-year active investment period, plus two years of optional extension, a Mantle spokesperson told Cointelegraph by email. The initial fund operator is proposed to be Mirana Ventures, Bybit and BitDAO’s venture partner, with an investment committee comprising representatives from Mirana Ventures, Mantle, BitDAO and Bybit.

“The fund targets to invest in more than 100 projects deployed on Mantle and have a multiple on invested capital (MOIC) of 1.5x of cumulative performance through the fund’s lifecycle,” Mantle’s spokesperson said.

EcoFund team has announced that it will be charging a 2% management fee to support

The EcoFund team has announced that it will be charging a 2% management fee to support its operational expenses, including sourcing, due diligence, legal, portfolio support, and fund administration. The fee is expected to be in line with industry standards and will be used to drive adoption and innovation across the cryptocurrency industry.

EcoFund is a cryptocurrency-focused fund that aims to support the development of sustainable and environmentally-friendly blockchain projects. The fund seeks to invest in projects that are committed to reducing the carbon footprint of the blockchain industry and improving the industry’s overall sustainability.

To achieve its goals, EcoFund has assembled a team of experts who will be responsible for sourcing and vetting potential investments, as well as providing portfolio support and fund administration services. The team will be supported by the management fee, which is expected to cover the cost of their services.

The 2% management fee is in line with industry standards, and similar initiatives have been launched across the cryptocurrency industry to drive adoption and innovation. For example, Ethereum scaling solution Polygon launched a $100 million fund last year aimed at improving access to decentralized finance, onboarding users, and accelerating adoption.

The fund, called the Polygon Ecosystem Fund, has already invested in a number of projects, including Aave, Curve, and Balancer. The fund is also expected to support projects that are focused on improving the user experience and increasing the overall utility of the Ethereum network.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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