Chainage, a decentralized finance service provider, is looking to raise $13 million for the expansion of its protocol. The proposal, which requires approval from tokenholders within its decentralized autonomous organization (DAO), aims to issue 50 million additional XCHNG protocol tokens, equivalent to approximately 10% of Chainage’s circulating supply. The issuance price of these tokens is set at $0.26, which is in line with the current token price.
To participate in the proposal, users can stake their native XCHNG tokens and receive “vXCHNG” tokens, which represent voting rights. Chainage has outlined plans to enhance usage and profitability, ensuring a minimum profit generation of $1 million for Q2 for vXCHNG holders. The main objectives of the $13 million raise are global expansion and increased visibility. Moreover, Chainage intends to attract top-tier talent to integrate AI with cutting-edge technology, positioning itself as a leading AI-powered crypto innovator.
If approved, the new capital will be utilized to incentivize liquidity, establish new partnerships, launch marketing initiatives, and provide rewards for tokenholders. Currently, the proposal has received 186 million XCHNG votes in favor and 7.2 million XCHNG votes against, with a circulating XCHNG balance of 474 million.
This approach taken by Chainage differs significantly from traditional venture capital practices, where new investments are typically based on the approval of shareholders, usually the company’s co-founders. In the crypto startup landscape, more Web3 startups are turning to accelerator programs as the market experiences a bullish trend and investors seek to capitalize on the growing interest in cryptocurrencies.
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