(MENAFN- Newsfile Corp) Crypto Incubator Magnet DAO Raises $10M in Public Sale, Launches Protocol
Singapore, Singapore--(Newsfile Corp. - January 5, 2022) - Crypto-incubator Magnet DAO raised $10 million in a public sale at the end of December, prior to launching its protocol on January 2.
Magnet DAO aims to be an early-stage crypto incubator. This concept is a twist on the trend of decentralized digital reserve currencies in general and the decentralized finance protocol Olympus in particular.
It provides access to early-stage investment opportunities that would otherwise remain exclusive to VCs, angel investors, and founding teams. By reinvesting 10% of its bond profits into further high-quality crypto assets, Magnet DAO effectively fashions itself into a blockchain venture fund.
Raising $10 million in 39 minutes in December 28 Public Offering
Magnet DAO first launched natively on Avalanche (AVAX) on December 7, with 2 million MAG tokens up for sale at a price of $0.80. This represented 20% of Magnet's initial supply.
This initial launch was open only to the Magnet DAO community on Discord. However, these investors showed significant interest. The limit for individual maximum contributions was increased from $500 to $4,000 to meet unexpected demand, and the community offering was sold out within 32 minutes . Overall, $1.6 million were raised at the time.
The initial community offering was followed by a public offering on December 28, which equally exceeded anticipated investor interest.
The sale launched on December 28th at 5 pm UTC and was set to last for 48h or until a total contribution of $10 million MIM had been reached.
Overall, 4 million bMAG tokens were available, representing 40% of the initial supply. These are NTTs (Non-Transferable Tokens), which cannot be sold on or exchanged for liquidity. However, they have become redeemable with the launch of Magnet's protocol.
The motivation behind offering NTTs was to prevent the development of non-approved liquidity pools (LPs) prior to the launch of Magnet's official listing.
During the public sale, the total contribution limit of $10 million was reached within a mere 39 minutes.
Investors who had participated in the December 7th community offering were airdropped an equivalent amount of bMAG to redeem following the protocol launch.
Protocol Launch, Trader Joe Whitelisting, Minting, and Staking
On January 2 at 5PM UTC, Magnet DAO's protocol launched officially, with a projected vesting period of 7 days, thus vesting approximately 14% each day. During this period, bMAG is being staked and is receiving rebase rewards.
The MAG token is now available natively on Avalanche, through an app via Magnet DAO's site. Furthermore, it was whitelisted by Trader Joe, a decentralized Avalanche trading platform, on January 3. It is thus now also available for swapping by users through this avenue.
The deployment of the Magnet protocol allows users not only to stake MAG for rebase rewards, but also to mint using MIM and MAG-MIM LPs to purchase MAG at a discount.
During minting, these assets are transferred to the Magnet DAO treasury. In exchange, investors receive MAG at a discount. Subsequently, MAG is vested linearly during a 5-day period during which investors can claim their MAG in order to stake it.
During the early phase of the launch, Magnet DAO is offering a slightly elevated minting discount to quickly build its treasury and liquidity.
Investors can stake their MAG through Magnet DAO's site by approving the target site and the amount they want to stake before submitting.
Staking is followed by a warm-up period of two epochs during which investors can unstake their MAG. However, they will forfeit their rebase rewards by doing so.
Once 16 hours have passed, though, investors can claim their sMAG, which encompasses their original MAG contribution as well as their staking reward. With the sMAG claimed, investors are then at liberty to unstake at any point, including staking rewards.
The purpose of this warm-up period is to prevent rebase traders from abusing the Magnet protocol. Frequently, opportunistic investors purchase tokens, then proceed to stake them just before a rebase. Once they have received the staking reward, they then dump the tokens, which is detrimental to the protocol. By implementing the warm-up period, Magnet aims to stave off this danger.
Projected Development of Magnet DAO
According to Magnet DAO's own publication on Medium, the protocol's next steps will focus on building the governance framework of the DAO (Decentralized Autonomous Organization) and assessing community proposals for the deployment of Magnet's Innovation Fund.
Furthermore, Magnet has announced that it will be holding Investathon and Hackathon events for community members to build blockchain products.
For the long term, Magnet has announced improvements such as a variable ROI based on minting periods, bonus staking rewards for diamond handers, and a zap functionality. In addition, the organization is building external and internal Decentralized Finance (DeFi) apps and tooling interfaces which can be licensed out to benefit the treasury.
Media Contact:
Name: Justin Mahone
Email: nce
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