Founder Shares How Marinade (MNDE) Turned $30K Grant to $2B Protocol

Marinade Finance, one of Solana’s largest liquid staking platforms, traces its beginning to an unusual moment involving a $30,000 grant. The funds, sent instantly through Telegram, later became the foundation of a protocol that now secures more than $2 billion.

That grant was tied to Solana’s DeFi hackathon in late 2020, where Marinade’s story truly began. A developer had mistakenly joined what he thought was a full ETHGlobal hackathon team, only to find a lone participant who redirected him to Solana’s contest just days before the deadline.

The untold story of how a $30,000 'accidental' grant became the foundation of $2B+ @MarinadeFinance.

A story about hackathons, founder breakups, and a last-minute Telegram message that changed everything.

In late 2020, I joined what I thought was a team from ETHGlobal hackathon… pic.twitter.com/PsuD1qfU1A

— repe (@repetny) August 25, 2025

From Hackathon Victory to Internal Rift

In a recent post on X, the protocol’s founder noted that through Discord, a new group quickly came together and built a liquid staking proof-of-concept within a week. Their submission won a prize and attracted the attention of Multicoin Capital’s Kyle Samani, who later acted as a mentor.

The recognition, however, soon gave way to internal disagreements about the project’s future. Some members pushed for seeking venture capital or engaging in acquisition talks with Ethereum staking provider Lido, while others argued for a return to Ethereum.

The founder stood firm on keeping the project on Solana, citing its lower costs and faster speeds as decisive advantages. He also advocated for a community-driven model rather than immediate VC funding, a position that sharpened the divide within the team.

Turning a Grant into a $2B Protocol

A turning point arrived when the Serum Foundation offered a $30,000 grant during a call. The founder pasted his FTX wallet address into Telegram, and the funds arrived within minutes, sparking conflict with his partner.

The dispute centered on who should receive the money, but a team vote eventually sided with the founder. That outcome secured his leadership and set the path for what would later become Marinade Finance.

With control established, the project rebranded and focused fully on Solana, introducing liquid staking derivatives through mSOL. This allowed SOL holders to stake while maintaining liquidity, enabling participation in lending, trading, and yield protocols.

Today, Marinade Finance holds over $2 billion in total value locked, ranking as one of Solana’s largest decentralized staking platforms. Its journey highlights how alignment of vision, community focus, and quick decisions can define a project’s future.

“What started as a rushed hackathon became proof that you can build massive protocols without traditional fundraising if you have the right community and unwavering focus,” the founder tweeted.

Token Buybacks and Governance Incentives

Alongside its protocol success, the liquid staking platform has unveiled a proposal to allocate 50% of its performance fees to monthly buybacks of its native governance token, MNDE.

The move builds on the groundwork set in MIP-11, introduced in June, which directed 40% of Stake Auction Marketplace (SAM) performance fees to MNDE buybacks. At the time, that amounted to about 3.8% of total protocol revenue. SAM itself was designed to let validators bid for stakes, guarantee an annual percentage yield (APY), and capture yields above the market standard.

The new proposal, MIP-13, expands the scope by raising the allocation to 50% of all protocol performance fees. In addition to the buyback mechanism, MIP-13 also introduces an “Active Staking Rewards” (ASR) program. The ASR program will distribute 25 million MNDE tokens throughout 2025 to encourage voter participation in DAO governance.

Market activity has been modest following these developments. MNDE is trading around $0.12 at press time, down 4% in the past 24 hours in line with broader market trends, though it remains 10% higher over the past 14 days.

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