Key Points:
- The former Jump Trading employees that launched Monad Labs obtained $19 million in preliminary investment to create a new blockchain that addresses problems with the existing layer 1 protocol.
- The Monad blockchain will go live on a testnet in the upcoming months, with the mainnet deployment scheduled for later this year.
- EVM compatibility and the proof-of-stake consensus method will be used by the blockchain.
The former Jump Trading team that established Monad Labs closed a $19 million seed round, which was headed by Dragonfly Capital.
Seventy other investors, including. Placeholder Capital, Lemniscap, Shima Capital, Finality Capital, and the angel investors Naval Ravikant, Cobie, and Hasu, contributed to the fundraising. A new blockchain will be created using the money raised.
The team at Monad Labs, a 2022 company with venture capital backing in the early stages, has over seven years of expertise developing low-latency, high-frequency trading systems at Jump Trading.
DeFi development on Ethereum-compatible systems is currently constrained by the inefficiency of Layer1 protocols, which provide low throughput at a high cost. DApps are restricted in their capabilities, and it is challenging for them to grow for widespread use.
All of these problems are addressed by Monad Labs’ Monad blockchain, a Layer 1 smart contract platform compatible with the Ethereum Virtual Machine (EVM) and built to deliver several times the throughput that Ethereum offers.
Keone Hon, Co-Founder & CEO of Monad Labs, said in a statement:
“The Monad blockchain will set the industry standards for the speed, transparency, security and scalability that all Layer1 protocols should have, and its true impact will be felt across both the Web2 and Web3 ecosystems. This successful seed round demonstrates the need for Monad in the marketplace and the shared commitment from all to advance the industry. We are excited to work alongside our investors to bring Monad to market, build out its capabilities and show the world exactly what blockchains can do.”
The Monad blockchain will function via a proof-of-stake consensus method and is intended to execute a total of 10,000 transactions per second. Without providing specific dates, the testnet and mainnet for the blockchain are planned to be live later this year.
According to a release, the Monad blockchain will go live on a testnet in the upcoming months, with the mainnet deployment scheduled for later this year. The blockchain will use the proof-of-stake consensus algorithm and be interoperable with the EVM.
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