TOWNS Protocol Deep Dive: The New Future of Encrypted Communication and On‑Chain Social Interaction

Why do we need decentralized social?

Traditional social platforms are highly centralized, with user data and speech rights restricted, and severe data privacy issues. Towns Protocol is based on blockchain and attempts to provide a social protocol completely controlled by users, ensuring:

• The content of the communication is encrypted and cannot be tampered with;
• Users have space and data;
• Community governance protocol development.

Towns protocol architecture and communication mechanism

Towns Protocol is composed of three major technical components:

• Towns Chain: L2 blockchain responsible for proof and permission management;
• Stream Nodes: Distributed node network management for message verification, encryption, and transmission;
• Smart Contract System: Contracts deployed on Base support space creation, membership rules, and permission management.

By designing “spaces” as programmable assets, Towns has achieved a highly flexible and customizable group communication model, and supports end-to-end encryption to ensure content privacy.

Detailed Explanation of TOWNS Token Governance Mechanism

TOWNS token grants holders full governance rights, governed by Towns Lodge DAO:

• Proposal mechanism: Space owners or node certificate holders can propose changes.
• Voting system: The proportion of token holdings determines the voting weight;
• Execution process: All changes are automatically executed through the contract, enhancing transparency and efficiency.

In addition, TOWNS can also be used for node staking and to support the unlocking of spatial functions, making it the “fuel” for the operation of the protocol.

Node Operation and Economic Incentives

The protocol adopts a bi-weekly distribution incentive mechanism:

• Node operators can set service fee rates to attract delegators;
• The delegators distribute inflation rewards according to the staking ratio;
• The initial total supply is 10 billion, and the future inflation rate will gradually decrease from 8% to 2%.

This mechanism encourages nodes to provide high-quality services, maintaining the security and stable operation of the protocol network.

Community Vision and Development Potential

Towns is not only a chat protocol but also a foundational infrastructure for Web3 social interactions. Whether it is communities, DAOs, project teams, or application developers, they can create customized private spaces and social experiences based on Towns. Currently, there are client products like LateCheckout already integrated into the ecosystem, demonstrating its development openness.

In the future, with the increasing demand for decentralized identity and encryption social interactions, the TOWNS protocol is expected to become a core component of the next blueprint for social infrastructure.