The BitDAO ecosystem created the Ethereum layer-2 network known as Mantle Core. The fund aims to increase developer and DApp adoption.
Mantle Core posted a request 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 over the following three years on the Mantle ecosystem.
The BitDAO treasury would contribute $100 million in Dollar Coin (USDC $1.00), and another $100 million would come from “strategic venture partners” who would give external matching money.
According to Mantle’s proposal, funds like Dragonfly Capital, Pantera, Folius Ventures, Play Ventures Future Fund, Spartan, Lemniscap, Selini Capital, Cadenza Ventures, and QCP Capital have showed 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 that are raising pre-seed, seed, and series A rounds of funding.
An email from a 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 made up of Mirana Ventures, Mantle, BitDAO, and Bybit members. Mantle’s spokesperson said:
“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,”
The governance forum for BitDAO.A 2% fee would be added to the “industry standard” management fees to help cover the EcoFund team’s operating costs, which include sourcing, due diligence, legal, portfolio support, and fund administration.
Similar programs are being implemented throughout the crypto sector to promote acceptance and innovation. A $100 million fund was recently established by Ethereum scaling solution Polygon with the goals of enhancing access to decentralized banking, onboarding users, and increasing adoption.
