Research Report | Initia Project Details & INIT Market Cap Analysis

1. Project Introduction

Initia is a full-chain Rollup network that achieves native interoperability of multi-chain ecosystems through its independently developed Layer1 + Rollup framework. The platform is built on Cosmos SDK and supports three major virtual machines: EVM, MoveVM, and WASM. It is one of the few infrastructures that genuinely caters to both Ethereum-based and non-Ethereum-based developers.

The project uses the underlying public chain (Initia L1) as a unified liquidity and consensus hub and builds application-level Rollups (Minitia) and an Optimistic framework (OPInit Stack) on it. Developers can directly deploy customized chains, enjoying services such as shared consensus, native interoperability, and unified incentives, bypassing the cumbersome deployment process and shifting focus from "chain development" to "product innovation."

In terms of economic model, Initia introduces an innovative mechanism called Enshrined Liquidity, which deeply binds liquidity with consensus security, allowing users to stake LP assets for governance rights and ecosystem benefits. Additionally, the VIP (Vested Interest Program) mechanism bridges the value distribution logic between Rollups and users/developers, ensuring that every active contribution receives a reward.

Unlike traditional public chains that emphasize “encouraging migration” as a core path, Initia places more emphasis on “native building” and “ecological integration.” It constructs a complete development support system through built-in wallet services, oracles, block explorers, and unified identity systems. Each Minitia is not just an AppChain but a one-stop, ready-to-use application issuing platform.

As of now, Initia has completed three rounds of financing, accumulating $25 million, with investors including top-tier institutions like Binance Labs, Hack VC, Delphi Digital, and Theory Ventures. The ecosystem spans DeFi, AI, GameFi, and other directions, indicating a rich potential for imminent outbreak.

2. Project Highlights

1. Building an Integrated Architecture to Facilitate System Coordination between Layer1 and Rollup

Initia innovatively integrates its independently developed Layer1 main chain (Initia L1) with the native Rollup framework (OPInit Stack), forming a modular blockchain infrastructure with secure consensus, liquidity hub, cross-chain communication, and unified governance capabilities. The platform enables native coordination between Layer1 and multiple Rollups at the technology stack and governance mechanism levels, providing applications with a complete combinable environment. It is currently one of the few projects in modular public chains with system closed-loop capabilities.

2. Native Support for Three Virtual Machines, Targeting Multi-Ecosystem Developer Groups

Initia supports EVM, MoveVM, and WASM, which are compatible with Ethereum and Move ecosystems and can serve developers from multiple languages (e.g., C, Rust), minimizing migration costs to the greatest extent. With its independently developed Interwoven Stack toolchain, Rollup projects can be “used out of the box,” allowing for flexible customization, rapid deployment, and breaking down development barriers between multi-chain ecosystems.

3. Liquidity Drives Consensus, Deeply Binding Incentive Mechanisms and Security Modules

The core module, Enshrined Liquidity, allows users to stake LP Tokens (provided by InitiaDEX) to validators to participate in consensus, breaking the traditional paradigm where assets only serve transactions, and achieving a new mechanism where “liquidity equals governance rights.” This design enhances main chain security, increases asset value transfer efficiency at the application layer, and strengthens the economic connection between L1 and Rollup.

4. Native Incentive Mechanism VIP, Promoting Joint Ecosystem Construction by Users and Developers

Initia launched the Vested Interest Program (VIP), offering ecosystem incentives finely divided based on on-chain behavior data, user activity, and Rollup operation contributions, ensuring that value flows directly to end-users and builders, replacing the inefficient transformation model of traditional grants. This mechanism not only guarantees developer enthusiasm but also stimulates long-term user interaction desire, serving as a key driving module for sustainable ecosystem growth.

3. Market Cap Expectations

Initia is a modular blockchain platform that integrates Layer1 main chain and native Rollup Stack, aiming to build a unified communication layer for “universal chain interoperability” with strong architectural depth and cross-chain integration capabilities. In terms of positioning, Initia is comparable in technology path and market space to projects like Movement (modular + Move), ZetaChain (full-chain smart contracts), and Avail (DA layer + modular infrastructure), all representing projects in the new track of “modular blockchain.”

Currently, Initia's token INIT has a total supply of 1 billion, with its launch price and market cap yet to be disclosed. We can refer to the fully diluted valuation (FDV) range of the aforementioned similar projects to assist in judging the potential valuation anchor and potential space for INIT post-launch.

4. Economic Model

The total supply of Initia's native token INIT is fixed at 1 billion, with 5% allocated to airdrops.

Token Allocation

Airdrop 5%
The airdrop will reward testnet users, ecosystem advocates, and early supporters. These tokens will be released all at once at the mainnet launch (TGE) with a 30-day window for eligible recipients to claim them.

Foundation 7.75%
Held by the Initia Foundation for purposes like liquidity guidance, validator delegation, ecosystem incentives, and strategic cooperation. This portion will be deployed in stages to support the platform's long-term ecological construction.

Protocol Developers (Team) 15%
Allocated to team members and contributors, with a 12-month lock-up and a 36-month linear release mechanism (4 years in total).

Protocol Sales (Investors) 15.25%
Involves investors from three funding rounds, with all tokens set with the same 4-year lock-up and unlocking mechanism as developers, maintaining long-term synergy between the team and investors.

Enshrined Liquidity and Staking Rewards 25%
Used to support Initia's native staking model (Enshrined Liquidity), rewarding liquidity providers and validation nodes, with a release rate of 5% per year, released linearly by block.

VIP Rewards Program 25%
Initia's core incentive module for distribution to end-users participating in Rollup construction, active user behavior, and ecosystem contributions, with an initial release rate of 7% per year, to be fulfilled continuously based on KPI achievement or zap mode.

CEX Launch Activities 6%
Specifically for initial CEX liquidity guidance, mainly for arrangements related to the CEX Launch Campaign.

Echo.xyz Community Sale 1%
 Allocated to Echo.xyz community sale participants, with four releases unlocking 25% each at the 12th, 15th, 18th, and 24th months after the mainnet launch.

Token Utility

1. Used to pay transaction fees in the Initia network's L1 and L2, serving as the universal fuel asset within the ecosystem.

2. Can be staked to participate in the consensus mechanism, supporting network security, and enhancing staking efficiency by combining with a liquidity staking model.

3. Holders have on-chain governance rights, including protocol parameter adjustments, liquidity whitelist reviews, treasury usage, and ecosystem allocation decisions.

4. Acts as a bridging medium between Rollups within the ecosystem, supporting efficient asset circulation and state communication.

5. Core asset of InitiaDEX can be used to create liquidity pools, earning trading fees and additional protocol rewards.

5. Team & Financing

Team Information:

Initia was founded by Stanford Liu, the former head of research at Terraform Labs, along with co-founder Ishan "Zon" Mangolji and Ecosystem Head OmniscientAsian (formerly of New Tribe Capital). The team is focused on building simple, highly coordinated modular blockchain infrastructure, aiming to eliminate complexity and fragmentation issues faced by developers and users.

Financing Information:

Since 2023, Initia has received support from well-known institutions like Binance Labs, Delphi Digital, and Hack VC, accumulating $24 million in funding. The latest Series A financing round was completed in September 2024, with a valuation of $350 million, reflecting market recognition of its modular architecture and strong execution team.

6. Potential Risk Warning

1. Although the Initia mainnet is officially launched with a complete Layer1 + native Rollup framework, the current Minitia (application chain) ecosystem is still in its early stages. If the expansion speed of high-quality native applications does not meet expectations or if cross-Rollup liquidity and user growth are slow, there may be short-term impacts on network activity and intrinsic demand for INIT tokens.

7. Official Links

Website: https://initia.xyz/

Twitter: https://x.com/initia

Discord: https://discord.com/invite/initia