Published on: 01/04/2024
Decentralized finance (DeFi) hub Chainage is making waves in the crypto community with its proposal of a $13 million capital raise. The move does not only signify growth and expansion plans for Chainage, but also indicates a larger trend in crypto startups transitioning towards more democratic funding methods.
Chainage, a robust DeFi service provider, currently houses about $100 million in total value locked. Contingent on tokenholders approval within its native decentralized autonomous organization (DAO), the DeFi platform looks to boost protocol development with a hefty $13 million raise.
Traditionally, new investments in crypto startups often relied on shareholders approval, typically the co-founders of the company. Chainages actions, however, starkly differentiate from this conventional practice. The DeFi hub is requesting the consent of its tokenholders instead. This governance model places power in the hands of the users, giving them a direct stake in its future course. This strategy could represent a new dynamic in the crypto-venture capital landscape, especially as blockchain and DeFi adoption surges.
The potential capital raise is led by an unidentified venture capital firm. If it materializes, there will be an issuance of an extra 50 million XCHNG protocol tokens. This new supply corresponds to approximately 10% of Chainages existing circulating supply. Each issued token carries a price tag of $0.26 and the value is approximately at par with the tokens price at the time of the proposals announcement.
Crucial to the votes outcome are the vXCHNG voting rights tokens. Tokenholders can acquire these by staking their XCHNG tokens, which then provides them with the authority to vote on the proposal. The project has promised numerous tactics to amplify usage and profitability, thereby reassuring vXCHNG holders a minimum profit of $1 million for Q2 2021. An impressive 80% of the profit will be allocated to vXCHNG holders.
Beyond the significant steps concerning token issuance and capital raise, Chainage aims for global expansion and heightened visibility through these funds. Fuse AI with top-notch technology is part of the plan to position Chainage as an influential force in AI-embedded crypto innovators. The approved funds would additionally bolster Chainages liquidity, sponsor new partnerships, and even underpin marketing campaigns and rewards destined for tokenholders.
It is evident that this decision holds an impactful sway over crypto startups and venture capitalists alike. With blockchain technology emerging, and cryptocurrencies entering a new bull market, the interest in unconventional funding and governance models is mounting. Such models, like Chainages DAO, bring democratization to funding rounds, creating a more participative, transparent line of business.
Hence, for crypto investors, Chainages proposal signals an essential shift towards democratization in the crypto sector. This democratic-change moves beyond a single DeFi platform and holds the possibility to realign funding approaches in the digital asset space. Though the outcome of the vote remains to be seen, one thing is clear - the crypto ecosystem is evolving, and those willing to adapt might reap attractive returns.