DAO community fosters long term growth with reward proposal for sharing bridge fees

With the rise of decentralized finance (DeFi), investing in cryptocurrencies has become more than purchasing the most well-known tokens. Now, many of today's most profitable and worthwhile opportunities can be found by staking funds in a project, many of which offer an attractive APY and a lucrative passive income opportunity. 

The kicker is that despite projects offering what look like attractive returns, there is never a guarantee that these rewards will continue, at least at a rate marketed at the early stages of the project's release. For this reason, many agree that the best way to determine a secure investment avenue is to select one that gives you a chance to directly influence the outcome, as is often true in a decentralized autonomous organization (DAO). In addition to participating in non-human-controlled governance, investors become entitled to a share of the profits from selling project tokens.

Multichain, a platform now recognized as a leader in the cross-chain field, has recently released a staking opportunity that enables users to mint veMULTI NFT and makes their voice heard in their community. The platform, which now includes a family of 48 chains and over 2200 bridges, regularly maintains a daily volume of more than $100 million, a value they strive to increase with MULTI staking and rewards implemented by the veMULTI contract. The team also shares that veMulti is deployed on Ethereum (ETH), Fantom (FTM) and Binance (BNB) chains.

The team has since released the veMULTI proposal and mainnet, which was made available to the public on May 9, 2022. As the governing system for multiDAO, anyone who stakes MULTI will become eligible to receive veMULTI NFT. As a holder, these ones will have the ability to vote on proposals regarding future direction and earn rewards in USDC distributed weekly while simultaneously benefiting from the NFT value. 

In response to this release, Zhaojun, CEO and co-founder of Multichain, shares, "With veMULTI, Multichain is the first project with no token inflations."

A DAO lead proposal

Multichain was originally founded under the Anyswap name. At the time, the platform offered a “buyback” program, which concluded with two rounds of ANY token buyback. Following the rebrand, the governance token was converted from ANY to MULTI. Then, Multichain formally transformed into a DAO, a model that gave the community the power to make decisions.

With the community driving future growth projects, it became evident through Telegram polls within the DAO that the veMULTI proposal was discussed and presented to the majority of participants. Sustaining long-term growth then became a driver in the launch of the veMULTI proposal. As a result of veMULTI, future proposals are to be made through associated governance voting, alongside functionality for staking and rewards. 

When it comes to distribution, after subtracting 10% of bridge fees for the Safety Fund, the 50% remaining bridge fees will be dispersed as incentives to be shared quarterly with the community in USDC. Typically this proportion of bridge fees from Q1 2022 will be distributed in Q2 2022 as rewards. Although veMULTI got inspiration from veCRV, it is said to be better in terms of token economics.

Total reward amounts are estimated to be $10,807,780,81 in Q1 Multichain bridge fees and $2,136,725.16 in gas fees, resulting in a veMULTI distribution of $3,901,975.04. The Multichain team has since shared that Q1 2022 Multichain bridge fees will be distributed via USDC over the next nine weeks, with the last day being July 14. 

Taking a leading position

Multichain has since taken a leading position in the industry, a reality evident in its rapidly expanding ecosystem map, which has over 2,200 bridges and continuous advances in technological development, which amount to a widely usable product.

Over the next 12 months, the team looks to distribute veMULTI rewards and other company initiatives, including anyCall, fastMPC and a more extensive multichain ecosystem expansion.