A group of former Terra and Cosmos developers raised $7.5 million for a blockchain platform called Initia that is natively designed to support many Layer 2 networks.
A group of former developers from Terra and Cosmos, two well-known blockchain projects, have raised $7.5 million for their new blockchain platform called Initia. This platform is specifically designed to support multiple Layer 2 networks. The funding round was co-led by Delphi Ventures and Hack VC, with participation from Nascent, Figment Capital, Big Brain, A.Capital, and various angel investors.
The funding round was done through a SAFE agreement with a token warrant. While the specific valuation was not disclosed, the team mentioned that it was in the low nine-figure range.
Initia is currently live on a closed testnet, with several projects already building decentralized finance (DeFi) applications on it. An incentivized testnet is set to launch in April, followed by the mainnet launch in the second quarter.
The origin story of Initia
Initia was founded by Zon and Stan Liu, who were previously working at Terraform Labs. They left Terraform Labs to start their own Cosmos-based DeFi blockchain but had to halt their initial fundraising efforts due to the collapse of the Terra/Luna ecosystem.
After taking some time to consider their next move, Zon and Stan Liu decided to focus on creating Initia. They hired developers from the core teams behind Cosmos Hub and Terra Station, two important components of the Cosmos ecosystem. The team now consists of around 25 people.
In October 2023, Initia emerged from stealth mode with a pre-seed investment from Binance Labs. However, the exact amount of investment was not disclosed.
What is Initia’s purpose?
Initia aims to simplify the process of launching Layer 2 networks by providing instant support for various Ethereum and Cosmos features and networks. The platform’s goal is to allow product developers to solely focus on their applications without worrying about the underlying infrastructure.
Initia’s framework includes a shared infrastructure layer that supports different smart contract languages, including those from the Ethereum ecosystem. This enables seamless bridging between Layer 2 networks and access to oracles. The project will utilize Celestia for data availability.
Incentivizing Layer 2 network growth
Initia plans to allocate a significant portion of its token supply to an incentive program aimed at promoting activity on the Layer 2 networks built on its platform. Here’s how it works:
– The platform’s governance token, called INIT, will be used for voting on how the allocated tokens should be distributed among the Layer 2 networks.
– Key performance indicators can be set by voters, ensuring that tokens are only awarded if certain targets are achieved.
– Developers of the networks can receive a commission from the tokens allocated to their projects.
This incentivization program functions similarly to Curve’s vote-escrowed mechanism, where token holders lock up their tokens for a period of time and gain voting power.
Other features
In addition to incentivization, Initia offers other key features:
– Enshrined liquidity: Initia provides native liquidity at the core of its network, making it easier for users to swap tokens when moving between Layer 2 networks.
– Native .init usernames: Users can have usernames that work across all Layer 2 networks built on Initia, simplifying transactions between users.
Hot Take
With $7.5 million in funding and a strong team of developers behind it, Initia has the potential to become a significant player in the blockchain space. Its focus on supporting multiple Layer 2 networks and providing seamless integration with Ethereum and Cosmos features sets it apart from other platforms.
By simplifying the process of launching Layer 2 networks and incentivizing their growth, Initia aims to attract developers and users to its platform. With the upcoming launch of its incentivized testnet and mainnet, Initia is poised to make a mark in the world of blockchain technology.
Whether you’re a developer looking for an easy way to build on Layer 2 networks or an investor interested in supporting promising blockchain projects, Initia is definitely worth keeping an eye on. Its innovative features and strong team make it an exciting addition to the crypto ecosystem.
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