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Mantle Network Plans $200M Fund To Boost Ethereum Adoption

The Mantle EcoFund aims to support developers and dApps in the Ethereum ecosystem with $200 million capital

Mantle Network, an Ethereum (CRYPTO: ETH) layer-2 network, is voting to form a $200 million ecosystem fund.

The so-called Mantle EcoFund will focus on developer and decentralized applications (dApps) adoption. It will consist of $100 million USDC from the Mantle Treasury and an expected matching capital of $100 million from various venture partners.

Key objectives include:

  • Aiding founders and protocol technology partners building within the Mantle Ecosystem
  • Promoting the adoption of the Mantle Network among developers and dApps
  • Incentivizing SVP to support and invest in the Mantle Ecosystem
  • Ensuring the fund’s sustainability.

To ensure transparency, an independent committee will oversee the investments made by the Mantle EcoFund. This committee will review initial and potential follow-on investments to portfolio companies showing strong use cases involving the $MNT token.

Representation of cryptocurrency and representation of Ethereum cryptocurrency are seen in this illustration photo taken in Krakow, Poland on June 26, 2023. The so-called Mantle EcoFund will focus on developer and decentralized applications (dApps) adoption. It will consist of $100 million USDC from the Mantle Treasury and an expected matching capital of $100 million from various venture partners. PHOTO BY JAKUB PORZYCKI/GETTY IMAGES 

The proposal stated that venture partners for this initiative will be selected based on their industry knowledge. Among the funds that have expressed interest, per BitDao, include Alumni Ventures Blockchain Fund, Animoca Ventures, and Dragonfly Capital.

The Mantle EcoFund will operate with a three-year target deployment period and a possible two-year extension. It will adhere to the industry standard of a 2% annual management fee.

A profit-sharing mechanism will be introduced where 20% of investment returns will be shared with the venture partners, once the initial capital from Mantle has been returned.

The proposal puts forth a developmental target of deploying more than 40 projects in the Mantle Ecosystem over a period of three years, aiming for a financial returns target of over 1.5 times Multiple on Invested Capital (MOIC).

Produced in association with Benzinga

Edited by Saba Fatima and Asad Ali

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