The company behind Monad blockchain, Monad Labs, has secured $19 million in seed funding, with Dragonfly Capital as the primary investor. Seventy investors in total took part in the round, with major names including Placeholder Capital, Lamniscap, Shima Capital and Finality Capital all chipping in. With these funds, Monad Labs says that it will continue its work on developing groundbreaking Layer 1 smart contract ecosystems.
Monad and its mission to make DeFi more efficient
According to Monad Labs, existing Layer 1 protocols hinder the development of Ethereum-compatible DeFi because of their low throughput and high transaction costs. In addition, prohibitive computing costs severely restrict what can be created on-chain and compel developers to prioritise either security or compute efficiency. These constraints prevent dApps from reaching their full potential and hinder their widespread adoption. Monad Labs is on a mission to tackle these challenges.
Keone Hon, Co-Founder and CEO of Monad Labs said:
“This successful seed round demonstrates the need for Monad in the marketplace and the shared commitment from all to advance the industry.”
The Monad blockchain hopes to be a leader in the ecosystem by establishing new benchmarks for efficiency, transparency, security and scalability. One of the major improvements that Monad brings to the EVM standard is the ability to execute transactions in a parallel and asynchronous fashion. Thanks to this, Monad says that the blockchain, which uses a Proof-of-Stake consensus protocol, is on track to handle 10,000 TPS. Essentially, its primary goal is to deliver greater throughput than Ethereum.
Monad Labs is preparing for the day when crypto is no longer a niche industry and is adopted by the masses. Therefore, it is envisioning delivering the necessary developer tooling and harness technology convergences. Later this year, the Monad mainnet will go online, and before that, in the next few months, a testnet will go live. The mainnet and testnet will be interoperable with all existing EVM-based smart contracts.