What Towns does

Towns Protocol is a decentralized, end-to-end encrypted messaging platform built on Base, an Ethereum Layer 2 using the OP-Stack, and operated by the River Eridanus Association, a Wyoming Decentralized Unincorporated Nonprofit Association. Founded by Ben Rubin (creator of Houseparty and Meerkat), alongside co-founders Brian Meek and Pat Fives, Towns provides an open protocol for token-gated group communities called Spaces, where each Space is its own smart contract owned via an NFT. The technical stack features Signal-derived Double Ratchet encryption for peer-to-peer messages, AES-based ratchet encryption for group messaging, stream nodes that produce mini-blocks, Towns Chain as a dedicated L2 for consensus, Celestia as the data availability layer, and cross-chain entitlement verification against Ethereum, Optimism, Arbitrum, and Polygon.

The product surface spans the Towns Protocol core, Towns Chain, Stream Nodes, the TOWNS ERC-20 governance token (10B initial supply, 3B held in the Treasury under tokenholder control), the Towns Lodge decentralized governance structure, a React SDK, the River client application, and a Season 1 Grants Program with up to $250,000 in funding. The River Eridanus Association board currently makes governance decisions, with tokenholder voting via Towns Lodge scheduled to go live on January 1, 2026.

Towns monetizes via protocol fees on paid Space memberships (with the default dynamic pricing module approaching $10 at 1,000 members and capped at $100 at 10,000 members, and a flat fee module with a $10 minimum), separate protocol fees on tipping, and indirectly through the TOWNS Treasury. The platform has accumulated $31,232,500 in total platform earnings across all Spaces and has served customers including Sistine Research, Moonbirds, AX1.vc, Society of Self-Hosters, and G-FI Gaming Community. The company has raised approximately $38.8M across rounds in October 2024, April 2025, and June 2025 from Andreessen Horowitz, Benchmark, Coinbase Ventures, Frameworks, Base Ecosystem Fund, and Echo, and operates with 11-50 employees across a U.S. presence and a Swiss legal entity.

Name

Towns

Legal name

River Eridanus Association

Website

https://www.towns.com/

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

11–50 employees

Short description

Towns is a decentralized end-to-end encrypted messaging protocol built on Base L2 that powers token-gated group communities called Spaces, serving crypto traders, NFT collectors, gaming guilds, and content creators with self-sovereign communication and on-chain monetization.

Ownership category

akta.pro rank

Product category

Decentralized Messaging Protocol

NAICS

Lessors of Other Real Estate Property (531190)

SIC

Finance Services (6199)

akta.pro primary industry

Local & Neighborhood Communities (BPAMABAG)

akta.pro secondary industry

Identity, Credentials & Permissioning for Enterprises (DID/VC, access control, attestations) (FSAPAIAG)

Keywords

• Decentralized messaging protocol
• Encrypted group chat
• Web3 communication platform
• Token-gated communities
• On-chain messaging

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Software

Cost components

Technology or R&D, Personnel, Operations, Infrastructure, Marketing or Sales, Others

Revenue model

1. Membership Fees: Spaces charge membership fees for access. Default dynamic pricing logarithmically approaches $10 USD at 1,000 members and $100 USD at 10,000 members, with first 100 memberships free. Fees split between Space Owner, River Eridanus Association, and referrers.
2. Transaction Fee Distribution: Protocol takes fees on membership transactions. Free Spaces do not incur protocol fees on membership, but tipping incurs separate protocol fee.
3. Staking Rewards: Node Operators and delegators earn biweekly staking rewards from inflation. Operators retain commission, remainder distributed pro-rata to delegators.
4. Total Platform Earnings: Total earnings across the platform recorded at $31,232,500 from money-making group chats.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels7 records

Core offering

Towns operates an open messaging protocol built on Base (Ethereum L2) that powers private, end-to-end encrypted group chats with token-gated access. Community operators create "Spaces" (tokenized digital communities) that charge membership fees and leverage cross-chain NFT/asset entitlement verification. The platform is monetized through Space membership subscriptions (annual, denominated in ETH), protocol transaction fees, and biweekly staking rewards distributed to Node Operators and delegators.

Product overview

Towns Protocol is an open messaging platform built on Base (Ethereum L2) consisting of multiple integrated products: the core Towns Protocol messaging infrastructure with end-to-end encryption; Towns Chain, an OP-Stack Layer 2 blockchain for consensus and data integrity; Stream Nodes that handle message validation, storage, and mini-block creation; the TOWNS Token for staking, delegation, and governance; Towns Lodge for decentralized DAO governance overseeing 3B tokens; Spaces which are tokenized digital communities with customizable access control and pricing; River, the primary communication client; and a Grants Program funding ecosystem development. The system supports cross-chain entitlements across Ethereum, Optimism, Arbitrum, and Polygon.

Differentiator

Problem solved

Functional benefit

Brands

• Towns Lodge: Decentralized governance structure that oversees the Towns Protocol ecosystem and 3 billion TOWNS Token Treasury.
• Towns Labs

Products and services

• Towns Protocol An open messaging protocol built on Base that powers private, end-to-end encrypted group chats and decentralized finance applications, providing the core infrastructure for token-gated communities (Spaces).
• Towns Chain An Ethereum Layer 2 blockchain built on OP-Stack that serves as the foundation for consensus and data integrity of message streams, providing high throughput and low transaction costs by rolling up to Ethereum.
• Stream Nodes Decentralized nodes that accept encrypted messages, validate them, store messages, create mini-blocks, and participate in consensus to agree on message ordering. Operators and delegators earn biweekly staking rewards.
• TOWNS Token An ERC20 governance token deployed on Ethereum Mainnet with 10 billion initial supply, used for delegation to Node Operators, Space address delegation, and Towns Lodge governance. Features 8% annual inflation tapering to 2% over 20 years.
• Towns Lodge A decentralized governance structure organized as a Wyoming Decentralized Unincorporated Nonprofit Association that oversees 3 billion TOWNS Tokens in its Treasury, enabling tokenholders to vote on protocol proposals and decide whether to continue funding the River Eridanus Association.
• Spaces Tokenized digital communities within Towns Protocol, each with unique smart contract addresses. Spaces support customizable membership gating via cross-chain entitlements, configurable pricing modules, roles and entitlements, and are owned via NFT tokens by Space Owners.
• River The primary communication client application built on Towns Protocol, available on web (app.towns.com), iOS, and Android, enabling users to discover, join, and participate in token-gated Spaces with end-to-end encrypted messaging.
• Towns Protocol Grants Program A funding program offering up to $250,000 per season in Towns tokens to builders creating new clients, bots, entitlement modules, and pricing models for the Towns ecosystem. Operates two tracks: Ecosystem Grants and Registry Grants.
• React SDK A JavaScript/React software development kit that enables developers to build custom interfaces, bots, and applications on top of Towns Protocol.

Quantifiable outcome

• 8% annual inflation (decreasing to 2% over 20 years)
• +2 more outcomes

Named customers5 records

Segments5 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Feature7 records

Partnerships

Two partnerships are on record, tiered core.

• CelestiacoreTechnology or IntegrationTowns uses Celestia DA (Data Availability) Namespace to store blob data on the Towns Chain in a scalable, highly available, and cost-effective manner. Namespace ID: ca1d e12a 2bf1 0ef2 0a85.
• BasecoreTechnology or IntegrationTowns Protocol is built on Base (Ethereum L2) using OP-Stack. Smart contracts deployed on Base for SpaceFactory, SpaceOwner, Space, and BaseRegistry diamonds.

Scale indicators6 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Element (Matrix): Open-source, federated messaging client built on the Matrix protocol offering end-to-end encrypted group chats. Competes with Towns on the decentralized messaging axis, though without the deep on-chain/token-gating integration.
• Farcaster: Decentralized social network with Frames, Channels, and direct messaging; Warpcast is its primary client. Comparable to Towns in targeting crypto-native communities with decentralized, user-owned feeds and chat, though oriented more toward public social than private group chat.
• Push Protocol: Web3-native communication protocol for decentralized notifications, chat, and video, used by wallets and dApps. Competes with Towns as a messaging and notification layer for Web3, though more developer/API focused than community focused.
• XMTP: Open messaging protocol and network for Web3 wallets enabling encrypted 1:1 and group chats with on-chain identity. Direct competitor to Towns' messaging protocol layer, focused on wallet-native chat rather than community Spaces.
• Status: Decentralized messaging app and crypto wallet built on its own L2 (Status Network) with end-to-end encrypted 1:1 and group chats. Most directly comparable to Towns as both target privacy-conscious, crypto-native users with messaging plus on-chain features.
• Session: Privacy-focused, end-to-end encrypted messenger using an onion-routing network of nodes for metadata-resistant group chat. Comparable as a decentralized, privacy-first messaging alternative targeting communities concerned with surveillance and platform risk.

Broad incumbents

• Discord: Dominant centralized group chat platform for crypto, gaming, and creator communities with hundreds of millions of users. The primary incumbent Towns competes against for community mindshare and monetization.
• Telegram: Largest messaging platform globally with channels, groups, and TON-based crypto integrations. Serves as the incumbent for trading communities, the exact segment Towns' top customers come from.

Emerging players

• Lens Protocol: Decentralized social graph on Polygon enabling creator-owned profiles and content. Adjacent peer to Towns given shared Web3-native community monetization thesis, though Lens is public social rather than private encrypted messaging.
• Guild.xyz: Token-gated community management platform with Discord/Telegram bots for role assignment based on NFT and token holdings. Overlaps with Towns on token-gated community access, though Guild adds the gating layer atop existing chat apps rather than providing the chat layer itself.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks3 records

Key highlights6 records

Customer concentration

• Xx.com/townsxyz
• GitHubgithub.com/towns-protocol

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds3 records

Investors9 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Towns