Towns Launches Blockchain-Powered Messaging with Governance and Token Access

Towns is an open, decentralized messaging platform built on the Base Layer 2 blockchain, offering communities a unique combination of on-chain governance, token-gated access, and encrypted communication. By leveraging smart contracts, Towns allows users to create and manage “Spaces”—secure, programmable chat environments where access and moderation are enforced through blockchain-based rules rather than centralized control. This architecture supports features such as end-to-end encryption, NFT or token-based entry, and on-chain moderation, empowering users with full ownership and control over their digital communities [1].

At the heart of the Towns ecosystem is the $TOWNS token, an ERC-20 token with a total supply of 10 billion units. The token plays a central role in securing the network through staking, enabling governance participation, and unlocking premium features for Space owners. A flexible delegation system allows users to stake tokens directly to node operators or to specific Spaces, balancing incentives for network security and community governance. The token’s inflation rate starts at 8% annually and gradually decreases to 2% over 20 years, subject to DAO approval. Distribution is allocated as follows: 57% to the community through airdrops and grants, 35% to developers and investors with a one-year vesting period, and 8% to delegators and node operators to support decentralization [1].

Towns operates through a dual-layer model, with Ethereum smart contracts managing governance, access, and payments, while off-chain relay nodes handle message delivery for speed and efficiency. This design enables real-time communication without compromising decentralization or security. Compared to traditional platforms like Discord or Telegram, Towns eliminates centralized moderation and data storage by moving these functions onto the blockchain. Users can set rules, charge fees, and manage moderation through smart contracts, ensuring transparency and censorship resistance [1].

The Towns DAO oversees the project’s strategic direction, including development roadmaps, technical upgrades, and treasury management. Decisions are made collectively by stakeholders such as users, node operators, and Space owners, reinforcing the platform’s decentralized ethos. The DAO also ensures ongoing development and community growth, making Towns more than just a messaging tool but a fully Web3-integrated communication protocol [1].

Despite its innovative features, the platform faces challenges in adoption and scalability. While it currently hosts millions of active Spaces and over 1.6 million members, competing with established platforms like Discord and Telegram will require significant improvements in user experience and functionality. The project’s long-term success will depend on its ability to attract a broader audience, integrate with other Web3 applications, and maintain a stable token economy amid crypto market volatility [1].

Source:

[1] What is TOWNS? Everything You Need to Know, https://coinmarketcap.com/community/articles/689f190427535303f8990cc3/