“Pending DAO approval, we will advance with the particulars of the investment and detail the precise arrangements and plans,” the developers stated.
Under the condition that tokenholders within its native decentralised autonomous organisation (DAO) approve, decentralised finance services company Chainage, which has around $100 million in total locked value, is looking to fund $13 million for protocol expansion.
The April 1 snapshot proposal states that 50 million more XCHNG protocol tokens, or around 10% of Chainage’s circulating supply, will be issued as a consequence of the $13 million raise, which is being spearheaded by an undisclosed venture capital firm. At the time of publishing, the $0.26 issuance price and the token price of XCHNG are approximately equal.
Voting rights tokens, or “vXCHNG,” are obtained by users by the staking of their native XCHNG tokens. “Our intention is to employ various tactics to improve utilisation and financial gain, which will allow us to guarantee vXCHNG owners a minimum of $1 million in profit generation for the second quarter,” the developers stated.
It has been previously announced that as a direct benefit of the capital investment, 80% of this profit will be distributed to vXCHNG holders in accordance with our profit-sharing method.
The primary aims of the $13 million fundraising are global expansion and publicity. Moreover, in order to establish Chainge as a “leader in AI-powered crypto innovators,” developers aim to “recruit top-tier talent to fuse AI with cutting-edge technology.”
In addition to financing new alliances, marketing initiatives, and tokenholder benefits, the additional funding, if authorised, would also be utilised to encourage Chainage’s liquidity. At the time of publication, there were 7.2 million XCHNG votes against the proposal and 186 million votes in favour of it, out of a total 474 million XCHNG balance in circulation.
This is a significant departure from the venture capital ecosystem that supports cryptocurrency businesses, where additional investments are usually sought after receiving approval from shareholders, who are usually the co-founders of the company. A growing number of Web3 firms are resorting to accelerator programmes lately as investors try to profit from the cryptocurrency fever as it enters a new bull market.