Saga, a protocol dedicated to assisting developers in launching their own blockchains, has successfully closed a $5 million seed extension round. This funding boost, led by venture capital firm Placeholder, propels Saga’s total funding to an impressive $13.5 million. The announcement comes just months before Saga is set to launch its mainnet in January, further marking a pivotal moment for the company.
Unprecedented Pre-Layer-1 Stake by Placeholder
This seed extension round is notable for Placeholder as it represents the largest pre-Layer-1 stake the venture capital firm has taken in a portfolio company. The strategic investment underlines the confidence in Saga’s potential and aligns with Placeholder’s commitment to fostering innovation in the blockchain and Web3 sectors.
According to Saga’s Co-founder and CEO, Rebecca Liao, the protocol’s primary appeal lies in its scalability. She emphasizes that on Saga,
“Blockspace is theoretically infinite because you can spin up as many chains as you like, all in parallel.”
Liao draws parallels to cloud infrastructure, highlighting the platform’s flexibility and adaptability to the needs of developers.
Market Thaw Signals Investment Opportunities
The funding infusion comes amid signs pointing towards a thaw in the crypto market following a year of price declines. Liao anticipates enhanced transparency around Saga’s user numbers post-launch, positioning it to validate its technology. The decision to focus on user acquisition rather than developer grants reflects the team’s strategic approach to testing product-market fit in a competitive landscape.
Token Airdrop Plans and Saga’s Scalability Solution: Chainlets
Despite not promising compensation to developers, Saga has plans for a token airdrop. Further, initially targeting participating testnet developers and later extending to the broader community. Liao emphasizes that the requirements for participation will be set “quite high” to deter opportunistic speculators. This is to ensure a genuine and committed user base.
Saga’s innovative approach involves the launch of customizable parallel chains known as “chainlets.” Unlike traditional monolithic blockchains, Saga’s design allows for the creation of chainlets tailored to specific applications. This unique feature positions Saga as an integral part of the infrastructure supporting Polygon’s “supernets” and Avalanche’s “subnets.”
Gaming Focus with an Eye on Web3 Adoption
While Saga has a strong emphasis on gaming, Liao envisions the platform as a “general infrastructure platform” capable of serving various decentralized applications. The company believes that gaming will play a pivotal role in driving mainstream crypto adoption, especially in the context of challenges faced by traditional gaming studios.
Notably, Mobile gaming emerges as a primary focus, demanding immediate responses and minimal latency to meet the performance requirements of end-users.