Mantle Core, a BitDAO subsidiary, recently proposed creating a $200 million fund dedicated to early-stage Web3 startups. The proposal aims to accelerate the adoption of Mantle, an Ethereum layer 2 network, between developers and Dapps. The Mantle EcoFund will be implemented within the Mantle ecosystem over the next three years, with the BitDAO treasury providing $100 million in USD Coin (USDC) and another $100 million coming from external counterparty capital from strategic venture partners.

Several funds have expressed interest in participating in the Mantle EcoFund, including Dragonfly Capital, Pantera, Folius Ventures, Play Ventures Future Fund, Spartan, Lemniscap, Selini Capital, Cadenza Ventures and QCP Capital, according to Mantle’s proposal. If approved, the EcoFund and venture partners will participate in projects with a 1:1 co-investment ratio. The ecosystem fund will target Web3 startups that generate pre-seed, seed, and series A rounds.

The Mantle spokesperson has stated that “the objective of the fund is to invest in more than 100 projects implemented in Mantle and have a multiple of invested capital (MOIC) of 1.5 times the cumulative return throughout the life cycle of the fund” . Management fees for the EcoFund team, including sourcing, due diligence, legal, portfolio support and fund administration, will be “industry standard”, with a 2% fee to support operating expenses.

The proposed Mantle EcoFund is part of a broader trend in the crypto industry, with similar initiatives looking to drive adoption and innovation. For example, in 2021, Polygon, an Ethereum scaling solution, launched a $100 million fund aimed at improving access to decentralized financeuser onboarding and acceleration of adoption.

In summary, the proposed Mantle EcoFund has the potential to significantly boost development and startup adoption of Web3 by providing seed funding for promising projects. Backed by the BitDAO treasury and external venture partners, the Mantle EcoFund could become a major player in the Web3 ecosystem, driving innovation and growth for years to come.