- The Lava Network will continue to be developed thanks to $11 million raised by the Lava Foundation.
- Prior to Lava’s mainnet debut and airdrop in the upcoming months, this token round was held.
In advance of the network’s mainnet debut and token airdrop, the recently established non-profit Lava Foundation has raised $11 million in a financing round for the development of the modular blockchain network Lava.
Animoca Brands, Gate.io Ventures, CoinGecko Ventures, Ash Crypto, CryptoLark, and media outlets Crypto Times Japan, Le Journal Du Coin, and The Rollup were among the investors in the round, according to a statement released by Lava Foundation on Tuesday.
The head of the foundation, Amir Aaronson said that this is the first time the organization has been made public. Aaronson stated that the investment round was completed through a straightforward SAFT agreement, declining to address the valuation.
The investment round for Lava Foundation was launched not long after a $15 million seed round was disclosed in February by MagmaDevs (formerly Lava Protocol Inc.). According to Aaronson, the seed round was announced earlier this year but closed in 2023. Investor interest in Lava increased after the announcement, which prompted a fresh round of token funding.
According to Aaronson, until the DAO goes live on the mainnet, Lava Foundation is the only organization that sells tokens and sets the network’s plan.
Like the well-known project Celestia, Lava is a modular blockchain network. Lava is focused on data access via remote procedure calls (RPCs), whereas Celestia is focused on data availability. RPC requests facilitate the retrieval of data from blockchains allowing decentralized apps to carry out critical operations like as sending transactions, obtaining airdrops, balancing, and generating smart contracts.
While still in the testnet stage, Lava says it has already fulfilled more than 20 billion RPC queries on several blockchains. Users are being rewarded with points through the Magma program. Operators of blockchain nodes can join Lava and receive rewards for delivering efficient RPCs. If users change their RPC connection to Lava, they will receive Magma points.
According to Aaronson, the mainnet launch of Lava is still planned for the first part of 2024. Around the same time, the Lava token will do the same.
A token is required on the mainnet for a number of purposes, such as validators and RPC providers joining the network by staking LAVA, according to Aaronson. For the mainnet to work, a token needs to be active, and the Foundation will release further information as it becomes available.
One billion LAVA tokens are planned in total, with some of that amount being distributed to users via airdrops. Whether Lava will convert its Magma points program to LAVA tokens is a matter of debate. Regarding it and the number of points Lava has awarded since the program’s inception earlier this year, Aaronson declined to comment.
Lava is being used by several blockchain projects, such as Axelar, Evmos, and NEAR Protocol. According to Lava, agreements have also been inked with Filecoin, Starknet, and Cosmos Hub, among other chains.
Although Lava’s initial focus is on RPC, it will eventually enable more data structures, including indexing, subgraphs, sequencing, and more.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
