According to Cointelegraph: The decentralized finance (DeFi) platform Chainage is seeking to raise $13 million for protocol expansion, subject to approval from tokenholders via the platform's decentralized autonomous organization (DAO). Currently, Chainage has roughly $100 million in total value locked.
According to the proposal shared on April 1, an unidentified venture capital firm will lead the $13 million funding round. This will result in the production of an additional 50 million XCHNG protocol tokens, which is about 10% of Chainage's circulating supply. The issuance price proposed is $0.26, approximately the token's current price.
In a stated plan to encourage participation, the process enables users to vote on the proposal by staking their native XCHNG tokens in exchange for "vXCHNG" tokens that represent voting rights. "We are set to implement numerous strategies to enhance usage and profitability, enabling us to assure vXCHNG holders a minimum of $1 Million in profit generation for Q2,” Chainage noted.
The primary aims of the proposed $13 million capital injection are global expansion and increased visibility. Chainage plans to bring in "top-tier talent" for AI integration, establishing itself as a leader in AI-driven crypto innovation.
Some funds, if approved, will be used to bolster liquidity and support new partnerships, marketing ventures, and tokenholder rewards. The proposal has so far garnered 186 million XCHNG votes in favor, as opposed to 7.2 million XCHNG votes against.
This strategy sets a distinctive precedent compared to typical crypto startups that garner new investments through shareholder approval, usually involving the co-founders of the company. A growing number of Web3 startups are resorting to accelerator programs as the crypto sector ventures into a new bull market and investors seek to capitalize on the trend.