a month ago 3 min read

Mantle Core's Bold $200M Plan Boosts Interest in Web3 Investing

Mantle Core-EcoFund-Web3
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On the BitDAO governance forum, Mantle Core proposed setting up a $200 million fund for early-stage Web3 firms. The ecosystem fund intends to increase developers' and Dapps' use of Mantle's network.

The BitDAO ecosystem created the Ethereum layer-2 network known as Mantle. The plan calls for a $200 million capital pool to be invested over the following three years on the Mantle ecosystem. The BitDAO treasury would contribute $100 million in USD Coin USDC, and another $100 million would come from "strategic venture partners" in the form of external matching money.

Mantle's proposal states that several funds have indicated their interest in taking part, including Dragonfly Capital, Pantera, Folius Ventures, Play Ventures Future Fund, Spartan, Lemniscap, Selini Capital, Cadenza Ventures, and QCP Capital.

If authorized, projects will have a 1:1 co-investment ratio between the Mantle EcoFund and venture partners. The ecosystem fund will focus on Web3 startups that are raising pre-seed, seed, and series A rounds of funding. A 2% fee would be added to the "industry standard" management fees to help cover the EcoFund team's operating costs, which include sourcing, due diligence, legal, portfolio support, and fund administration.

Similar programs are being implemented throughout the crypto sector to promote acceptance and innovation. A $100 million fund was recently established by Ethereum scaling solution Polygon with the goal of enhancing access to decentralized banking, onboarding users, and increasing adoption.

An email from a Mantle representative to Cointelegraph stated that the fund's projected active investment period is three years with a further two years of potential extension. The inaugural fund operator is suggested to be a joint venture between Mirana Ventures, Bybit, and BitDAO, with an investing committee made up of Mirana Ventures, Mantle, BitDAO, and Bybit members.

A representative for Mantle stated that the fund "targets to invest in more than 100 projects deployed on Mantle and have a multiple on invested capital (MOIC) of 1.5x of cumulative performance across the fund's tenure."

The EcoFund Team Has Stated That It Will Impose a 2% Administration Fee To Help

The EcoFund team has disclosed that it will levy a 2% management charge to cover its operating costs, which include fund administration, sourcing, due diligence, legal, and portfolio support. The fee will be used to promote acceptance and innovation throughout the bitcoin sector and is anticipated to be in line with industry standards.

EcoFund is a cryptocurrency-focused fund that intends to encourage the development of sustainable and environmentally-friendly blockchain businesses. The fund looks to invest in initiatives that are dedicated to lowering the blockchain industry's carbon footprint and enhancing the sustainability of the sector as a whole.

In order to accomplish its objectives, EcoFund has put together a team of professionals who will be in charge of finding and evaluating suitable investments as well as offering fund administration and portfolio support services. The management fee, which is anticipated to cover the cost of their services, will assist the squad.

Similar programs have been established throughout the bitcoin sector to promote acceptance and innovation, and the 2% administration fee is in accordance with industry standards. For instance, Ethereum scaling solution Polygon last year unveiled a $100 million fund with the goal of enhancing access to decentralized banking, speeding adoption, and onboarding customers.

Aave, Curve, and Balancer are just a few of the initiatives that the Polygon Ecosystem Fund has already backed. The fund is also anticipated to provide funding for initiatives aimed at enhancing user convenience and boosting the Ethereum network's general usefulness.

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