Chainage Aims to Raise $13 Million for Protocol Expansion, Pending DAO Approval
Summary:
Chainage, a decentralized finance service provider with $100 million in locked value, is targeting to raise $13 million for protocol expansion, pending approval from its DAO tokenholders. Alongside global expansion and visibility, the fundraise aims at integrating AI with cutting-edge technology, spurring Chainage's liquidity, and fostering new partnerships and marketing initiatives. The fund will also provide rewards for tokenholders. The proposal has secured substantial support with 186 million favorable votes against 7.2 million opposing votes.
Chainage, a decentralized finance service with a total value of approximately $100 million, is aiming to secure $13 million for the expansion of its protocol, provided its decentralized autonomous organization (DAO) tokenholders approve. The proposal made on April 1 suggests that the $13 million fundraising, initiated by an unidentified venture capital company, would call for issuing an additional 50 million XCHNG protocol tokens. This accounts for roughly 10% of Chainage’s circulating supply with an issuance price of $0.26, more or less equivalent to XCHNG’s token price when reported.
Tokenholders can cast their vote on the proposal by pledging their inherent XCHNG tokens in return for “vXCHNG," which signifies their voting rights tokens. The developers declared their intention to employ several approaches to boost utilization and profitability, thereby ensuring vXCHNG token holders of minimum profits amounting to $1 million for the second quarter. They further explained that 80% of these profits would be apportioned among the vXCHNG token holders following a profit-sharing mechanism, enriching them with the benefits of this capital investment.
The primary objectives of this $13 million fundraiser are to enhance global reach and visibility. Additionally, the developers seek to hire high-level professionals to integrate AI with progressive technology, solidifying Chainage's position as a pioneering entity within crypto innovations powered by AI. If sanctioned, the newly-acquired funds will also be utilized to stimulate Chainage’s liquidity, support new collaborations, marketing initiatives and tokenholder bonuses. So far, the proposal has garnered 186 million supportive XCHNG votes and 7.2 million opposing votes, in the context of a circulating XCHNG balance of 474 million.
This move deviates notably from the conventional venture capital approach seen among crypto startups, who generally solicit fresh investments based on shareholder approval, often consisting of company co-founders. Lately, an increasing number of Web3 startups are resorting to accelerator programs as the ongoing bull market surge in crypto attracts investors eager to exploit the frenzy.
Published At
4/1/2024 8:55:30 PM
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