Decentralized Finance protocol Chainage has announced that it will raise $13 million to expand its protocol. The platform, boasting a TVL of around $100 million needs the approval of tokenholders on its decentralized autonomous organization (DAO) to finalize the plan.
Chainage reveals plan to raise $13 million
According to its snapshot on April 1, an unknown venture capital firm will lead the $13 million raise, requiring issuing about 50 million of the protocols XCHNG tokens. Notably, the tokens will represent about 10% of its circulating supply. The quoted issuance price of $0.26 is in line with the token price at the time of writing.
Users will be able to vote on the proposal by staking their XCHNG tokens, which would be swapped for vXCHNG, representing tokens for voting rights. The developers mentioned that they have plans to implement strategies that will aid usage and profitability. This way, it will guarantee the holders of its vCHNG tokens profit generation of a minimum of $1 million in Q2.
Impact and community engagement
The developers noted that holders of the vCHNG tokens will enjoy 80% of the profits, which will be shared using its profit-sharing mechanism. The protocol is focusing on global expansion and visibility as its goals for the $13 million raise. The developers are also looking to recruit talented personnel who will help in integrating AI into cutting-edge technology, which will position the protocol as one of the leaders in AI-powered crypto innovation.
If the new capital successfully passes approval, it will help Chainage’s liquidity, alongside providing support for other partnerships and rewards for tokenholders. The proposal has enjoyed more than 186 million votes in total with about 7.2 million votes against it with the current supply pegged at 474 million XCHNG tokens.
This move is in contrast to the usual method of venture capitalization where shareholders, who are typically the co-founders are the only ones who approve proposals. Recently, more startups have entered the market via accelerator programs to enjoy the recent boom in the cryptocurrency industry.
