I. The Dawn of Web3 Social: From “Walled Gardens” to “Open Squares”

In an era where Web2 social giants monopolize user data and algorithmic recommendations dominate traffic distribution, the Web3 protocol Towns Protocol, backed by a $61 million lead investment from a16z, is making a strong entry as a “decentralized town square.” This project, dubbed the “Discord slayer,” not only carries the strategic bet of top-tier venture capital on the Web3 social track but also has the potential to reshape the underlying logic of internet social interaction—empowering users to truly become the masters of digital space, rather than mere “tenants” of platforms.

The pain points of traditional social platforms have long been industry consensus: user data monopolized by platforms, lack of transparency in content moderation, and creators’ earnings being heavily deducted by platform fees. According to analysis by Tencent Cloud Developer Community, the “centralized data storage” and “platform algorithm-driven traffic distribution” of Web2 social platforms lead to high risks of user privacy breaches and inadequate protection of creators’ rights. The emergence of Towns Protocol is aimed at breaking this deadlock.

The core value of Towns lies in the combination of decentralized protocols and programmable spaces. Its underlying protocol allows users to create fully autonomous “towns,” with each town’s ownership anchored on the Ethereum blockchain through smart contracts, supporting transfer, sale, or DAO ownership. This design enables community managers to customize rules, such as setting membership entry barriers, designing NFT reward mechanisms, and even embedding on-chain games and NFT trading functions directly into the chat interface.

II. Technical Dissection: Three Disruptive Innovations of Towns Protocol

1. End-to-End Encryption and Censorship-Resistant Communication

   Towns employs the Messaging Layer Security (MLS) protocol and a decentralized node network to ensure that messages are always encrypted during transmission and storage, with no single node able to control or censor content. This design directly competes with privacy-focused applications like Signal, while achieving efficient and low-latency communication through an EVM-compatible Layer 2 chain. Even in groups with thousands of users online simultaneously, the message delivery speed can match that of centralized platforms.

2. Programmable Spaces and On-Chain Social Graphs

   Each town is a programmable smart contract, supporting developers to customize permission management, reputation systems, and economic models. For example, communities can issue membership tokens as entry credentials, and token holders can not only participate in governance voting but also share in protocol revenue by staking tokens. This “space-as-application” architecture makes Towns the “social infrastructure” of the Web3 ecosystem, allowing developers to quickly build decentralized applications without reinventing the wheel.

3. DAO Governance and Community Building

   The governance of Towns will gradually be transferred to the Towns DAO, with token holders voting on major matters such as protocol upgrades and fund allocation through tools like Snapshot. This decentralized governance model not only increases community participation but also quickly attracts early users and forms a network effect through an initial airdrop of 10% of the tokens (with a total supply of 10 billion tokens).

III. Capital Endorsement: a16z’s Web3 Social Strategy Puzzle

As the “beacon of crypto capital,” a16z’s continuous investment in Towns (Series A rounds totaling $51 million + Series B $10 million) reflects its deep strategic layout in the Web3 social track. According to a16z’s investment strategy, the core logic is:

• Infrastructure First: Towns’ protocol layer design provides underlying support for the entire Web3 social ecosystem, similar to Uniswap’s position in the DeFi space.

• User Sovereignty Narrative: By supporting Towns, a16z is betting that users’ demand for data control will become the next growth engine.

• Long-Term Value Capture: Towns’ token inflation mechanism (initially 8%, decreasing to 2% over 20 years) and node delegation model ensure that protocol revenue can sustainably support the ecosystem.

Notably, Coinbase Ventures joined the Series B round for the first time, signaling strategic recognition of Towns by industry giants. This combination of “top-tier VC + exchange” could bring dual advantages of traffic entry points and compliance resources to Towns.

IV. Market Validation: From 1 Million Members to $500,000 in Consumption

As of Q2 2025, Towns has attracted nearly 1 million members, with consumption from space conversations exceeding $500,000. These figures confirm the feasibility of its business model:

• Membership Economy: Users must hold membership tokens to send messages in spaces, with token pricing including protocol fees that directly support network operating costs.

• NFT and DAO Integration: For example, Nansen’s Dragonchain community uses Towns for on-chain governance, allowing members to vote on fund allocation and project directions.

• Cross-Chain Interoperability: Towns is compatible with multiple chains, including EVM and Solana, enabling users to seamlessly access DApps from different ecosystems.

V. Challenges and Future: The “Impossible Triangle” of Web3 Social

Despite its promising prospects, Towns still needs to overcome three major challenges:

1. User Experience Gap: Although Towns’ interface is similar to Discord, barriers such as crypto wallet login and gas fee payments may still deter ordinary users. It plans to introduce Apple’s next-generation login key technology to reduce usage difficulties.

2. Regulatory Compliance Risks: Decentralized communication may involve issues such as content moderation and anti-money laundering. Towns’ “programmable on-chain rules” design allows communities to set their own compliance strategies, but global regulatory differences remain a potential hazard.

3. Competitive Landscape: Projects like Farcaster and Lens Protocol are also competing for Web3 social entry points. Towns’ differentiated advantages lie in “programmable spaces” and “deep protocol layer integration,” but it needs to continue to build its ecosystem.

VI. Token Information

• Token Name: TOWNS

• Total Supply: 10 billion tokens

• Issuance Chain: Ethereum Mainnet and Base Layer 2

• Token Standard: ERC-20 (EVM-compatible)

• Estimated Launch Time: Q2 2025 (currently in airdrop phase)

• Release Schedule: 10% released at TGE, with the remainder released over eight months

• Presale Price: Please consult the assistant QQ: 1255277313

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VII. Conclusion: Reconstructing the Future of Social Interaction

The emergence of Towns Protocol is not only a technological innovation but also a revolution in the power structure of the internet. When a16z invests $61 million in this “Web3 version of Discord,” it is betting not only on a social application but on the rise of the entire decentralized social ecosystem. With the airdrop of TOWNS tokens set to begin in Q2 2025, this protocol-driven social revolution may truly bring the vision of “users as owners” into reality.

In the wave of Web3, can Towns become the disruptor that “slays” Discord? The answer may lie in its open-source protocol code repository, in the interactions of millions of global members, and in a16z’s firm belief in the future of Web3 over the next decade. After all, when technology begins to empower users with real autonomy, the future of social interaction is worth looking forward to.