Decentralized finance provider Chainage, which currently has approximately $100 million in total value locked, is aiming to raise $13 million for the expansion of its protocol. However, this fundraising effort is contingent upon the approval of tokenholders within its native decentralized autonomous organization (DAO).
In accordance with the proposal made on April 1, the $13 million raise, led by an undisclosed venture capital firm, will involve the issuance of 50 million additional XCHNG protocol tokens. These tokens represent roughly 10% of Chainage’s circulating supply. The issuance price of $0.26 is roughly equal to the current token price of XCHNG at the time of this publication.
Users have the ability to vote on the proposal by staking their native XCHNG tokens and receiving “vXCHNG” in return. This represents voting rights tokens. Chainage has stated, “We are planning to implement various strategies to enhance usage and profitability, which will guarantee vXCHNG holders a minimum profit generation of $1 million for the second quarter.”
The primary goals of the $13 million raise are global expansion and increased visibility. Additionally, the project aims to attract top-tier talent to merge artificial intelligence (AI) with cutting-edge technology, positioning Chainage as a leading AI-powered crypto innovator.
If approved, the new capital will also be used to incentivize Chainage’s liquidity, support new partnerships, marketing ventures, and provide rewards for tokenholders. At the time of this publication, the proposal has received 186 million XCHNG votes in favor and 7.2 million XCHNG votes against, with a total circulating XCHNG balance of 474 million.
This move stands in stark contrast to the traditional venture capital landscape for crypto startups, where new investments are typically sought with the approval of shareholders, who are often the company’s co-founders. In the current bull market for crypto, more Web3 startups are turning to accelerator programs as investors seek to capitalize on the frenzy.
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