What is TOWNS (TOWNS)

I. Project Introduction

1. What Is Towns?

Towns Protocol is an open-source framework designed for the development of decentralized, real-time messaging applications. Its architecture includes an EVM-compatible Layer 2 chain, decentralized off-chain streaming nodes, and smart contracts deployed on the Base network. The protocol enables permissionless creation of "spaces," which are programmable communication environments that grant users full ownership. Key features include on-chain subscription models for memberships, a scalable reputation system, and robust end-to-end encryption for all messages.

2. How Does Towns Work?

Infrastructure: EVM-compatible L2 + Decentralized streaming nodes + Smart contracts on the Base chain.

Space Mechanism: Each space is an on-chain asset with customizable access permissions and the ability to integrate with other contracts.

Access Rules: Only users holding a member NFT can participate in message interactions. Both member and space information are discoverable on-chain.

Economic Model: Messaging fees support protocol operations. Creators can earn revenue, and spaces can unlock more features (such as storage and custom pricing) through token delegation.

Delegation Mechanism: Users can delegate TOWNS tokens to nodes or spaces to participate in governance and support node operations.

3. Who Founded Towns?

Towns was co-founded by Ben Rubin and Patrick Fives. Rubin is the founder of Houseparty, a company acquired by Epic Games. He also brings a background as a scout for Sequoia Capital. Fives, his co-founder, was a key engineer at Houseparty and later an entrepreneur-in-residence at Benchmark.

4. TOWNS Tokenomics

The TOWNS token operates on an inflationary model. It begins with an 8% annual inflation rate, which then declines linearly starting in the second year. Node inflation rewards are paid out every two weeks. The total token supply at launch is 10,128,333,333 TOWNS. Over the next seven years, this will grow to a maximum supply of 15,327,986,354 tokens. TOWNS tokens are primarily used for: node delegation (30-day lockup), space delegation (to unlock space features), and governance.

The token distribution is as follows:

Community Reserve: 43.14%

Team: 21.46%

Investors: 13.74%

Public Sale Investors: 2.62%

Airdrop: 9.87%

First-Year Node Incentives: 7.90%

Node Inflation: 1.27%

5. Timeline of Key Milestones

February 23, 2023: Announced a $25.5 million Series A funding round, with a16z as the lead investor.

Q1 2024: The River Eridanus Association was formed in Switzerland to manage the protocol's growth, grants, and future funding initiatives.

December 2024: Underwent a rebranding from River Protocol to Towns.

April 11, 2025: Secured a $10 million Series B funding round, also led by a16z.

June 9, 2025: Raised an additional $3.3 million with participation from investors like Coinbase Ventures and Echo.

April 19, 2025: The initial airdrop snapshot was completed.

August 5, 2025: The official Token Generation Event (TGE) took place.​

II. Token Information

III. Related Links