An Open Protocol for Real-Time Messaging Applications

Towns Protocol is an open-source protocol designed for building decentralized real-time messaging applications. It consists of an EVM-compatible Layer 2 chain and decentralized off-chain relay nodes, deployed on Base. Towns enables users to create programmable communication use cases—referred to as “Spaces”—in a permissionless manner. These Spaces are ownable, support on-chain subscriptions (membership models), scalable reputation systems, and end-to-end message encryption.

The Towns Protocol ecosystem is built to empower people to create, manage, and participate in digital communities in a secure and permissionless way. Its primary goal is to offer a robust, secure, and decentralized platform that gives users full control over their data, privacy, and interactions within these digital spaces—while also protecting their reputations.

At its core, the Towns messaging protocol provides the foundational infrastructure for verifying and transmitting encrypted messages between users. It introduces an innovative approach to secure and private group messaging. Designed to integrate seamlessly within blockchain infrastructure, the protocol leverages decentralized technologies to offer a high-quality, permissionless messaging experience.

Read/write permissions are safeguarded on Base, allowing Towns to strike a balance in activity levels and send messages to thousands of participants as quickly as centralized social networks. While initially tailored for a broad range of chat use cases with built-in business logic, the protocol aims to evolve into an abstracted foundational layer for all types of encrypted messaging applications.

Key Features

Towns is composed of three main components:
First is the Towns Chain, a Layer 2 blockchain solution built on the OP Stack, which acts as the backbone of the Towns messaging protocol by providing consensus and security.
Second are the relay nodes, which handle message flow within the protocol, including validation, storage, and encryption.
Third is permission management, responsible for managing user permissions and access control within Spaces, ensuring a secure and organized communication environment.

The interface resembles Discord, but Towns also has its own unique aspects. The login page supports Google and Twitter accounts, and even integrates with competitors like Farcaster, without requiring a crypto-native wallet.

An Application Chain Designed for Social Networks

Towns Protocol is an application-specific chain purpose-built for social networking. It secures read and write permissions separately on Base, enabling trade-offs in performance so that it can send messages to thousands of users at speeds comparable to centralized social networks.

Ownable Communication Spaces

Creators truly own the Spaces they build, and these Spaces exist as on-chain assets.

Programmable Spaces

Spaces are deployed on-chain via programmable interfaces, allowing custom rules such as who can read or write. They can also integrate with any EVM-compatible external contracts.

On-Chain Membership with Built-in Protocol Fees

Users must hold a valid membership token to send and receive messages within a Space. Membership pricing includes protocol fees that contribute to covering network operation costs.

On-Chain Social Graph

Membership tokens and Spaces are discoverable on-chain, forming a transparent structure for the social network.

Scalable Reputation System

Towns allows programmable Spaces where members can maintain peer-to-peer reputation scores within specific Spaces. These scores are also visible on-chain.

End-to-End Encrypted Messaging

Advanced encryption technology ensures secure, private communications, protecting messages shared between the sender and authorized users.

Tokenomics

According to the official documentation, the Towns token is deployed on the Ethereum mainnet with an initial supply of 10 billion tokens. The Towns token serves multiple purposes within the Towns Protocol ecosystem, including delegating to node operators, delegating to Space addresses, and participating in governance.

Towns tokens can be delegated to node operators, who are key components of the network’s operations. To receive DAO approval and begin operations, a node operator must meet a minimum threshold of delegated tokens, ensuring they have sufficient stake in the network’s success and security. Delegation can be made directly to a node operator’s address or to any valid Space address within the network. Spaces can then redirect the received delegated tokens to specific node operators, offering flexibility in delegation strategies.

Beyond delegation and network operations, the Towns token also plays a central role in the governance of the Towns DAO. Token holders can participate in the decision-making process and influence the direction and policies of the DAO.

In terms of inflation, the Towns token follows an initial annual inflation rate of 8%, which linearly decreases over 20 years to a terminal rate of 2%. Inflation rewards are distributed biweekly to all active node operators. The formula for each period’s reward is: (Annual Inflation Rate / 26).

Regarding reward distribution fees, each node operator can set their own service fee percentage. This fee is deducted from the total inflation reward allocated to that node operator for the period. The remaining reward is then distributed proportionally to the node’s delegators. Towns will also launch its staking functionality in the future.

As of now, there is no information regarding any potential airdrops.

Summary

The CEO of Towns Protocol is Ben Rubin, an experienced entrepreneur best known as the co-founder and CEO of the popular video social app Houseparty and live-streaming app Meerkat.

(Rubin in the middle)

Rubin is recognized for his work in building innovative online communities and real-time communication tools. His career has focused on using technology to enhance user connection and interaction.

According to official sources, Towns currently has close to one million members, and consumer spending via Space conversations has exceeded $500,000. The protocol’s revenue has also been growing steadily since the beginning of the year.

The Web3 social sector has seen numerous protocols shine briefly—launching with grand visions of disruption, only to fade quickly due to technical bottlenecks, user attrition, or closed ecosystems. Amid a sluggish crypto market, attracting users to create and join group chats—and more importantly, getting them to stay—remains a fundamental challenge all social protocols must confront.

Disclaimer

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