Lava Network launches public mainnet and airdrops 55 million tokens
Quick Take
- Lava Network kicked of its phased mainnet launch and airdrop of 55 million LAVA tokens, starting with $2 million in incentives to pay out to network participants.
- Filecoin Network, Starknet Foundation, and Cosmos Hub, along with many other previously announced partners, are supporting a modular blockchain startup.
- The project is experimenting with its tokenomics by starting with a high token float and a capped supply.
Filecoin Network, Starknet Foundation and Cosmos Hub are supporting modular blockchain startup Lava Network’s phased mainnet launch and airdrop of 55 million LAVA tokens. This follows support from other projects, including Axelar and NEAR.
Founded in 2022, Lava is a modular blockchain that provides data access — i.e., retrieving and sending blockchain data — for other projects through remote procedure calls (RPCs). The project is not dissimilar to the much-hyped Celestia network, which focuses more on “data availability.”
Blockchain node operators are incentivized to join Lava and provide RPC services through rewards pools, which are distributed based on how many users are served and qualitative measures like speed, uptime and accuracy. The project announced it will launch with $2 million in incentives for mainnet participants.
In other words, blockchain projects like NEAR or Axelar that want to attract node infrastructure providers that serve application developers' data can tap into Lava to pay for that service. Although a relatively experimental design, Lava claims to have processed over 40 billion RPC requests during its testnet phase.
“Lava Network's incentive pools are decentralizing the NEAR RPC layer by creating a competitive market and bringing more providers. This has improved the experience for NEAR app developers and users,” Illia Polosukhin, co-founder of NEAR Protocol, said in a statement.
Other RPC users include Google Cloud, which runs nine nodes to serve Ethereum data.
The project has attracted considerable attention not only from technical users but also from investors. Late last year, the Lava Network raised a $15 million seed round co-led by Jump Capital, Hashkey Capital, and Tribe Capital, while the recently formed non-profit Lava Foundation raised $11 million from Animoca Brands, CoinGecko Ventures, and Polygon co-founder Sandeep Nailwa, among others, in May.
Additionally, the project is experimenting with its tokenomics — starting with a high number of tokens in circulation and a capped supply — in comparison to many recent projects that plan to unlock tokens and gradually inflate the supply in a move that many see as potentially negatively affecting token prices.
“We believe this approach is how all crypto protocols should be built - prioritizing community and sustainability, not only VCs,” Lava Head of Marketing Ethan Luc told The Block in an email.
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