What is Towns (TOWNS)?

Deep Dive

1. Purpose & Value Proposition

Towns reimagines online communities by merging Web2-like usability with Web3 ownership. Its core use case is decentralized, encrypted group chats where memberships (via NFTs) and permissions are managed on-chain. Unlike Discord or Telegram, Towns lets users own their Spaces, monetize access, and enforce rules via smart contracts.

2. Technology & Architecture

Built on Base (Ethereum L2), Towns combines an EVM-compatible chain for settlements with off-chain “stream nodes” for real-time messaging. Key innovations:
- End-to-end encryption for all messages.
- Cross-chain entitlements – integrate tokens from other chains (e.g., ETH, SOL) for access control.
- Decentralized moderation – reputation scores and governance votes replace centralized bans.

3. Tokenomics & Governance

TOWNS has a dual role:
- Governance: Holders vote on protocol upgrades and node incentives.
- Node Incentives: Users delegate TOWNS to node operators, earning rewards from message fees.
Token supply starts at 10.1B (43% community reserve) with 8% annual inflation at launch, tapering over seven years. Protocol fees (ETH) fund buybacks to offset inflation.

Conclusion

Towns bridges encrypted messaging with blockchain’s ownership model, prioritizing privacy and user sovereignty. As adoption grows, how will its inflationary tokenomics balance node rewards with long-term holder value?