Unlike traditional platforms where algorithms and gatekeepers dictate engagement, Towns enables users to own, govern, and monetize their spaces directly. With its own native token TOWNS, strong backing from top-tier VCs, and a modular architecture, Towns Protocol is positioned to become a cornerstone of on-chain communication and coordination in the Web3 era.
What Is Towns Protocol?
Towns Protocol is a messaging system that is open for everyone to use and is built on the Base network. It combines a layer 2 chain that works with EVM and uses decentralised off-chain stream nodes and smart contracts. Unlike traditional platforms, it allows users and communities to create programmable, ownable “Spaces”—encrypted chat environments governed through smart contracts on Base.
Key features include:
- End-to-End Encryption of all messages
- Token-Gated Access via ERC‑20 tokens, NFTs, or wallet-based memberships
- On-Chain Memberships enabling fee-based subscriptions and reputation-based control
- On-Chain Social Graphs and Governance Mechanisms for transparent moderation and structure.
With millions of active “Spaces,” 1.6M+ memberships, and 9,300 ETH in revenue generated across the protocol, Towns is already gaining traction in the Web3 social scene. Its architecture empowers communities to monetize access and retain governance autonomy—tools typically reserved for centralized platforms.
How Does Towns Work?
Towns Protocol is a decentralized communication infrastructure built on Base Layer 2 that enables token-governed, smart contract-based online communities. At its core, Towns allows users to create programmable spaces—similar to token-gated Discord servers—where access, governance, and moderation are all enforced on-chain. These “Spaces” operate through hybrid architecture: the on-chain layer handles permissions, subscriptions, and governance via Ethereum smart contracts, while real-time messaging is streamed and stored off-chain to maintain high performance. This dual-layer system ensures decentralization and ownership without compromising user experience.
Each Space can require ownership of specific NFTs or tokens to gain access, and communities can charge recurring crypto subscriptions, implement voting mechanisms, or deploy custom moderation logic. The TOWNS token plays a central role by powering access control, governance voting, staking incentives, and protocol sustainability. Fees collected from paid Spaces are partially used to buy and burn TOWNS tokens, introducing a deflationary mechanic to the ecosystem. Additionally, Towns provides developers with a full SDK to integrate programmable chat into any Web3 application, DAO, or NFT project, making it a foundational piece of decentralized social infrastructure.
Unlike Web2 platforms such as Telegram or Discord, where centralized entities dictate control and store user data, Towns shifts that authority to smart contracts—ensuring censorship resistance, privacy, and community ownership. With end-to-end encryption and cryptographically enforced rules, Towns presents a Web3-native alternative to group messaging, fully embedded within the blockchain ecosystem.
For more: Towns Airdrop Guide: SocialFi Project Backed by a16z
Key Components of Towns Protocol
At its core, Towns Protocol integrates three essential components: Towns Protocol (the foundational layer of smart contracts), appTowns (the user-facing application), and daoTowns (its governance structure). Together, these layers create a full-stack, permissionless ecosystem that enables real-time encrypted messaging, on-chain interactions, and decentralized governance.
Towns Protocol (Composable Infrastructure Layer)
The protocol layer is composed of Ethereum smart contracts that are modular, extensible, and upgradeable. The infrastructure layer allows communities to define their own access rules, content moderation logic, privacy settings, and monetization strategies. Unlike rigid Web2 architectures, these contracts enable dynamic interactions that reflect the specific needs of each community. From NFTs to DAO voting tools, every piece is composable—meaning developers can remix functionality without starting from scratch.
Further reinforcing its decentralization, Towns operates over a distributed proof-of-stake node network, making its real-time communication both tamper-proof and censorship-resistant. End-to-end encryption ensures that no central authority or infrastructure provider has access to messages or metadata.
appTowns (The Interface Layer)
The appTowns product is the protocol’s flagship front-end—a fully open-source, privacy-first application that brings its technical underpinnings to life. Through a seamless and intuitive UI, users can chat, vote, trade, and build—all in one place. appTowns directly integrates with web3 wallets and identity protocols, linking a user’s address to their actions in a verifiable and secure way.
One of the standout features of appTowns is its tight integration with the broader Ethereum ecosystem. For instance, users can interact with NFTs, initiate DAO votes, or perform cross-chain actions directly from their chat interface. Communities can also embed games or decentralized finance tools, enabling a participatory economy within each Town. Think of it as Discord meets Web3—only decentralized and censorship-resistant.
daoTowns (Governance and Community Ownership)
The daoTowns system represents the governance layer of the protocol. Managed by the Towns DAO, governance participants include developers, node operators, space owners, and token holders. The DAO votes on core updates, treasury allocation, incentive models, and product direction.
Instead of relying on centralized leadership, the Towns ecosystem is shaped by the communities it serves. Participants in the DAO have the ability to suggest new features, allocate funds for development tools, and establish strategic partnerships. Furthermore, their involvement ensures that Towns evolves in alignment with user needs, rather than platform profit incentives.
Binance Airdrop and TOWNS Token Launch
Binance has unveiled TOWNS as the 30th project in its HODLer Airdrops initiative, retroactively rewarding users who held and staked BNB on Simple Earn or On-Chain Yields between July 14 and July 17, 2025 (UTC). Eligible users will receive a share of 305,848,461 TOWNS tokens, representing approximately 3.02% of the genesis supply.
Binance will list TOWNS on August 5, 2025, at 14:30 UTC, with trading pairs including TOWNS/USDT, USDC, BNB, FDUSD, and TRY. Trading will be first available on Binance Alpha—a pre-launch platform—before moving to Spot markets. The asset will carry a Seed Tag, signaling that it may be a higher-volatility, early-stage investment.
For more: Towns (TOWNS) Will be Listed on Binance HODLer Airdrops
TOWNS Tokenomics and Distribution
TOWNS launched with a genesis supply of approximately 10.13 billion tokens, and a max cap of 15.33 billion. At listing, circulating supply will be around 2.11 billion TOWNS (~20.8% of genesis).
$TOWNS tokenomics puts the community first.
57% of tokens fuel airdrops, grants, and other community initiatives.
Team and Seed, Series A/B investors are locked for 1 year by a third party, then vest linearly.
Inflation is offset by a programmatic buy-and-burn. pic.twitter.com/BskbNslROc— Towns Protocol (@TownsProtocol) August 2, 2025
TOWNS token contract:
- BNB Chain: 0x00000000bcA93b25a6694ca3d2109d545988b13B
- Ethereum: 0x000000Fa00b200406de700041CFc6b19BbFB4d13
- Base: 0x00000000A22C618fd6b4D7E9A335C4B96B189a38
The token allocation is designed around community distribution:
- 57% of tokens dedicated to airdrops, grants, and ecosystem growth
- 35% reserved for the team and early investors (locked for one year with vesting)
- 8% allocated to node operators and delegators to bootstrap decentralized infrastructure.
Moreover, users who choose to stake TOWNS may receive a 50% bonus allocation, subject to a 30-day withdrawal lock—all in a move to boost long-term engagement and decentralization.
A key mechanism is token buybacks and burns funded from protocol usage fees. Since launch, Towns generated over $2.1 million in fees, almost all used to repurchase and destroy TOWNS, creating a sustainable feedback loop between activity and token demand.
The TOWNS token utility powers the protocol in three key ways:
- Access Control – Certain spaces may require holding or staking TOWNS to join.
- Governance – Token holders vote on proposals, including protocol upgrades, treasury allocations, and fee adjustments.
- Staking & Burns – TOWNS can be staked for incentives or rewards. Protocol fees (from paid Spaces) are used to buy back and burn TOWNS, reducing supply over time.
Towns Protocol Team, Investors & Fundraising
Towns was founded in 2023 by Ben Rubin (co-founder of Houseparty) and Patrick Fives, who previously held executive technology roles in consumer social apps.
Brian Meek (left), Ben Rubin (Middle) and Patrick Fives (Right)
The protocol has raised approximately $25.5 million in a Series A (Feb 2023), $10 million in a Series B (Apr 2025), $1.11 million from the ICO round of Echo with lock-up conditions and an additional $3.3 million through the ICO round, Binance Holder Airdrop event—bringing total funding to close to $46M.
Towns has raised $46 million to date from a16zcrypto, Coinbase Ventures, Benchmark, Framework, echodotxyz and other strategic angels.
Thank you to our partners who trust the vision that communication should be owned, not controlled. pic.twitter.com/54pz0WDm9z
— Towns Protocol (@TownsProtocol) July 30, 2025
Major investors include:
- Andreessen Horowitz (a16z Crypto)
- Coinbase Ventures
- Benchmark
- Framework Ventures
Towns Protocol represents a novel step toward Web3-native communication infrastructure, offering communities a secure and decentralized alternative to Discord or Slack—while embedding economic incentives and governance within the architecture. Its tokenomics are designed to reward active users, create scarcity, and grant meaningful control to creators and participants.
For more: Crypto Venture Capital Funds: Top Crypto VC Firms in 2025
FAQs
What makes Towns Protocol different from other chat platforms?
Towns gives users ownership over their digital spaces via smart contracts, decentralized governance, and end-to-end encryption—features that are missing in traditional platforms like Discord or Telegram.
What can communities build with Towns?
Communities can construct anything from gaming hubs and DeFi communities to NFT marketplaces and governance spaces. Towns is modular and composable, allowing custom rule sets, integrations, and monetization structures.
What are the use cases for the TOWNS token?
The TOWNS token serves multiple functions: it’s used for governance voting, node incentives, access control, and potentially premium features within Towns apps. Holding TOWNS grants influence over how the protocol evolves and how its treasury is deployed.
