Ren Protocol to Mint 180M Tokens to Fund its Ecosytem Growth

Ren, an open protocol that allows users to transfer digital assets from one blockchain to another, has announced a new proposal to mint 180 million tokens worth $10.8 million as a form of funding capital to cover current and future needs.

The funds gotten from the minted tokens will be used to fund the new Ren 2.0 and the Ren Foundation according to the released proposal document.

According to the initial proposal, members of Ren governance were expected to vote in favor or against minting new tokens for the Ren Foundation and the number of tokens to be used for funding the new version of the protocol.

As regards the voting, five options were made available to the voting members to decide how many new Ren tokens will be minted. The five options include 50 million, 100 million, 150 million, 200 million, and a Reject option. The 200 million option had the highest vote of 80.78% while the 150 million option had the least vote of 1.08%.

The proposal also indicated that tokens minted to the Foundation should not be locked so that the Foundation can possess the flexibility of imposing lockups when doing fundraising or grant payouts in the best interests of the community. The Foundation was, however, advised to impose lockups on tokens being given to investors or the development team.

Ren Moves On from Alameda Research LLC

Ren protocol is minting new tokens to fund its projects because it stopped receiving funds from its major backer, Alameda Research LLC, as a result of the abrupt collapse of the insolvent FTX exchange platform.

Ren announced in November that it was moving on from Alameda Research after its subsidiary firm FTX exchange filed for bankruptcy protection due to liquidity issues.

The partnership between Ren and Alameda started in 2021 when Ren made an announcement that its team was joining Alameda and the wider crypto ecosystem. As per the partnership, Ren said it was going to work with Alameda to attain the development phase of decentralization in addition to developing the Solana blockchain.