A $200 million Web3 fund proposal is under serious consideration on BitDAO.
Mantle Core submitted a proposal to launch a $200 million fund for Web3 startups. The proposal was published on the BitDAO governance forum. If launched, the fund will encourage dApp developers to adopt the Mantle Core network.
It is worth noting that Mantle Core was created by BitDAO and is a layer 2 network that runs on top of Ethereum. In the proposal, the company stated that the fund would be distributed over three years to developers on Mantle Core.
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BitDAO revealed that it would name the fund Mantle EcoFund. The money needed for the fund would come from the BitDAO treasury and other partners. In particular, BitDAO treasury is set to give $100 million in USD Coin (USDC).
According to Mantle's proposal, several VC funds have expressed interest in funding the initiative, including Pantera, Dragonfly Capital, Folius Ventures, Future Fund, Spartan, Selini Capital, QCP Capital, and more.
If created, the Mantle EcoFund will fund Web3 startups that are in the pre-seed, seed, and series A funding rounds.
The Mantle Core proposal set the management fee at 2%, which is considered the industry standard. The 2% fee would be used for due diligence, legal support, fund administration, sourcing, and portfolio support.
The proposed fund is similar to other initiatives in the sector. Polygon, an Ethereum scaling solution, launched a $100 million fund in 2022. The fund is dedicated to onboarding users and accelerating the adoption of DeFi. Thus far, it has invested in numerous projects, including Curve, Aave, and Balancer.
Thus far, a launch date for the fund has yet to be set.
