The Web3 industry has entered an era of block space oversupply, and the Initia VIP program has resonated.

The Web3 industry has entered a new phase of excess block space. With the completion of the Rollup infrastructure and the rise of AppChains, the supply-side economics concept long upheld by the Ethereum community seems to be outdated. The previous approach of indiscriminately incentivizing developers regardless of the quality of the projects has been proven ineffective in reality.

Certain well-known Layer 2 project funding programs have become representatives of DAO governance corruption and breeding grounds for zombie dApps. With the changes in the global political and economic landscape, the crypto industry is maturing rapidly and is about to enter the era of large-scale Web3 applications. In this context, the industry's focus has finally shifted from developers and technical experts to consumers and ordinary users.

The earlier protocols, projects, and developers realize this shift, the more they can gain an advantage in the new era of large-scale applications in Web3. The Cosmos ecosystem has always been ahead of the Ethereum community, continuously leading innovation from modularization to chain abstraction.

The VIP (Vested Interest Program) plan of Initia is based on the principles of rebalancing and alignment of interests, aiming to readjust the reward mechanisms for ecological roles such as AppChain, governance nodes, and users, encouraging them to responsibly participate in the consensus security and governance of L1, and to utilize block space effectively. In terms of specific design, Initia draws on the token economic model of a well-known project, cleverly integrating the essence of token economics from two industry cycles—Ve(3, 3), and escrow (native tokens).

Initia breaks the traditional model of PoS chain token economics, not only rewarding governance nodes with esINST but also directly awarding esINST to AppChains and end users. Initia has specially designed the unlocking mechanism for esINST, requiring users to maintain their VIP score above a specific threshold to fully unlock it, encouraging them to continuously and actively use block space. Additionally, users can choose to stake the esINST they earn into the built-in liquidity pool of L1, thereby enhancing the liquidity, interoperability, and security of the entire Initia ecosystem.

Summary

The goal of Initia is multifaceted: on one hand, it aims to establish its native token INST with a core position in its ecosystem similar to that of ETH in the Ethereum ecosystem; on the other hand, it is committed to balancing the interests and responsibilities between governance nodes and AppChain, as well as end users. At the same time, Initia also seeks to avoid the issues of fragmentation in the Cosmos ecosystem and the misalignment of incentives in the Ethereum ecosystem.