XDC Network, a proof-of-stake blockchain infrastructure provider, secured a USD 50 million commitment from LDA Capital Ltd. The founders of the project reportedly leveraged a portion of their personal token allocations to facilitate the funding

The company plans to use the funding to support the expansion and development of Layer 2 projects across its ecosystem as well as increase network adoption among retail and institutional clients.

Analyst quicktake: Proof-of-stake blockchains have been seeing a recent surge of funding over the last month with startups such as Nibiru and GRNgrid raising USD 7.5 million and USD 50 million respectively . This surge of interest can also be attributed to the recent major network upgrade (dubbed the merge) carried out by Ethereum which transitioned the blockchain to a proof-of-stake consensus mechanism. The major draw of these types of networks is their heightened energy efficiency compared to “proof-of-work” mechanisms which have been under heavy scrutiny for excess energy consumption and environmental impact.