BitDAO Proposes $200 Million Deployment to Fuel Growth of Mantle Network’s Layer 2 Ecosystem
In a significant move towards the development and growth of the Mantle Network, BitDAO has released the MIP-24 proposal, which outlines plans to deploy a substantial amount of funds to the Layer 2 Mantle ecosystem.
With a goal to deploy over 40 projects and achieve a financial return of 1.5 times the Multiple on Invested Capital (MOIC) in three years, this proposal has garnered support from strategic venture partners, including Animoca, Bankless, and Dragonfly, among others. Mirana Ventures and the Mantle Core Contributor Team co-authored the proposal, which has incorporated valuable feedback from the Mantle community and strategic venture partners.
The Mantle Network is a high-performance Ethereum layer-2 network that utilizes a modular architecture and aligns with the strategic interests of Mantle through the MNT token. Ecosystem funds have historically played a crucial role in catalyzing growth for emerging protocols and ecosystems, especially in terms of developer and decentralized application (dApp) adoption.
The updated MIP-24 proposal, an enhanced version of the previous Mantle EcoFund Proposal, seeks to establish the Mantle EcoFund with $100 million from the Mantle Treasury. This fund will be managed by an Investment Committee, responsible for making informed investment decisions. Additionally, the proposal authorizes the first capital call of 10 million USDC from the Mantle Treasury. As of the time of writing, an overwhelming majority of 99.92% of voters have expressed their support with a “Yes” in the current results.
The proposal outlines the objectives of the Mantle EcoFund, which include supporting founders and protocol technology partners building within the Mantle Ecosystem, driving adoption of the Mantle Network among developers and dApps, incentivizing reputable strategic venture partners to invest in the ecosystem, and ensuring the fund’s sustainability through performance and returns.
The investment mandate of the Mantle EcoFund focuses on being the first to invest in high-quality and innovative early-stage projects within the Mantle Ecosystem. The fund also has the flexibility to offer liquidity or follow-on investments to portfolio companies that demonstrate traction and robust use cases involving the MNT token.
To maintain transparency and accountability, the proposal suggests the establishment of an independent Investment Committee for the Mantle EcoFund. This committee will adhere to industry best practices and review investment decisions made by the fund.
The proposal emphasizes the importance of strategic venture partners, who should be reputable venture funds and individuals with industry knowledge, product experience, strong networks, and a successful track record in previous investments. These partners are expected to share the belief in supporting aspiring founders within the Mantle Ecosystem. The list of potential strategic venture partners is extensive, including notable names such as Alumni Ventures Blockchain Fund, Animoca Ventures, Bankless Ventures, Dragonfly Capital, and Pantera Capital, among many others.
Regarding the fund’s structure, the deployment period for the Mantle EcoFund is planned to be three years, with a possible two-year extension. Performance reviews and assessments of key metrics will be conducted twice a year by the Investment Committee.
As for fees and incentives, the proposal suggests a standard 2% annual management fee to support the operational requirements of the Mantle EcoFund team. To foster meaningful capital deployment and post-investment support, a profit-sharing mechanism is proposed, wherein 20% of the investment returns generated by the Mantle EcoFund will be shared with the strategic venture partners. The Mantle EcoFund operating team is also incentivized with a 10% carry on returns after the $100 million investment principal has been returned.
The proposal concludes with key performance targets, aiming to deploy more than 40 projects within the Mantle Ecosystem over three years and achieve a financial return of at least 1.5 times the MOIC.
The BitDAO MIP-24 proposal demonstrates a significant commitment to the growth and development of the Mantle Network. By deploying substantial funds and collaborating with strategic venture partners, BitDAO aims to catalyze the expansion of the Mantle ecosystem, drive adoption, and support innovative projects. If passed by the Mantle community, this proposal has the potential to shape the future of decentralized finance and blockchain technology.
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