Lava Network Raises $15 Million in Seed Funding, Introducing Magma

Lava Network has successfully secured $15 million in a seed funding round, introducing the next phase of the mainnet.

According to a recent blog post by Lava Network, the seed funding round was co-led by Tribe Capital, Jump Capital, and Hashkey Capital. Alliance DAO, Node Capital, North Island Ventures, Finality Capital Partners, and other investors participated in the round.

Excited to share Lava Protocol's $15 million seed raise to build a modular data access layer for Ethereum & web3.

We're also introducing our next phase to Mainnet: Magma.

Wallet users can now earn points on @ethereum, @NEARProtocol, @Starknet, @EvmosOrg and @axelarnetwork. pic.twitter.com/RwUTDHF4F4

— Lava Network 🌋 (@lavanetxyz) February 15, 2024

Lava Network’s Modular Architecture

The funding was aimed at establishing a crucial modular data access layer for web3, setting it apart from projects like Celestia and Dymension that target data availability, settlement, and consensus.

Lava’s architecture would enable scalable multi-chain access by allowing the addition of APIs and chains as modules without permission. Node operators will contribute by serving these modules, while the protocol ensures efficiency by directing requests to the optimal node providers.

“Lava is a unified platform bringing together data providers across any chain and any service: RPC, indexing, oracles, MEV APIs, sequencers etc,” according to the blog.

“Access to blockchain data is critical and anyone can contribute to the Lava layer to help scale web3,” the blog reads.

Magma Points: Rewarding Community Contributors

Lava Network also announced the next phase of their mainnet, introducing Magma point earning rewards.

Users can now receive points by changing the wallets’ connection to Lava. Besides, users can earn bonus points using partner wallets including Leap Cosmos and Sender Wallet.

In the ecosystem, points were designed to recognize contributions across several roles. For instance, App developers can earn points by launching projects and making requests via Lava. Delegators can accrue points by supporting network providers and validators, enhancing network efficiency and security.

In addition, data providers may receive points for running nodes and delivering data across various blockchains. This structured points system planned to incentivize participation, maintaining Lava’s objective to offer scalable, multi-chain data access.

“Rewards are distributed based on volume served and quality of service, i.e., speed, uptime, and accuracy, thereby optimizing performance for developers and users,” said Lava Network CEO Yair Cleper.