The cryptocurrency market’s upward momentum today gave way to a decline, while notable developments continue in the blockchain space. Accordingly, the decentralized finance service provider Chainage, with a total value of approximately $100 million, is trying to raise $13 million for protocol expansion, subject to the approval of token holders in its local decentralized organization (DAO).
What’s Happening on the Web3 Platform?
According to the instant bid dated April 1, the $13 million increase managed by an unknown venture capital firm will result in the issuance of an additional 50 million XCHNG protocol tokens, representing about 10% of Chainage’s circulating supply. The issue price of $0.26 is roughly at the same level as the XCHNG token price at the time of writing.
Users can vote on the offer by staking their local XCHNG tokens in exchange for vXCHNG, which represent voting right tokens. Developers state they will implement numerous strategies to increase usage and profitability, guaranteeing vXCHNG holders at least $1 million in profits for the second quarter:
“As previously stated, 80% of this profit will be allocated to vXCHNG holders and distributed according to our profit-sharing mechanism as a direct benefit of the capital investment.”
Significant Move for Chainage
Global expansion and visibility are the two main goals of the $13 million increase. Developers also want to hire top talent to combine artificial intelligence with the latest technology to position Chainge as a leader among AI-powered crypto innovators.
If approved, the new capital will be used not only to promote Chainage’s liquidity but also to support new partnerships, marketing initiatives, and rewards for token holders. Against a balance of 474 million circulating XCHNG, the proposal received 186 million XCHNG in favor and 7.2 million XCHNG against at the time of writing.
This move is in stark contrast to the venture capital environment of crypto ventures that typically seek new investments based on the approval of the company’s founding partners, who are shareholders. Recently, as crypto enters a new bull market and investors try to profit from this frenzy, more and more Web3 initiatives are turning to accelerator programs.
