Initia: How the Binance Labs-backed network works

Initia emerges as a proposal that combines scalability, security, and user experience within a single environment. This project is presented as a layer 1 (L1) blockchain that connects multiple customized layer 2 (L2) rollups, allowing different applications and virtual machines (VMs) to operate together without fragmenting the user experience.

An Architecture Designed to Connect Everything

Developed by Initia Labs, the network aims to simplify the creation of app-chains or application-specific blockchains while maintaining the security and liquidity of a central infrastructure. Its modular approach and compatibility with the Cosmos ecosystem allow it to offer interoperability through the IBC protocol, one of the key pillars of the Web3 environment.

L1 and Interwoven Rollups

Initia’s foundation is built on the Cosmos SDK, which allows it to leverage the IBC standard for cross-chain communication. On top of this main layer, a set of interconnected rollups —called interwoven rollups— are built, capable of running various virtual machines such as EVM, MoveVM, or WasmVM.

This model, managed through the OPinit Stack framework, seeks to balance autonomy and coordination: each rollup can operate independently while remaining linked to the security and shared resources of the main network.

The Interwoven Stack: Modularity with Cohesion

To avoid the usual fragmentation seen across blockchains, Initia introduces its own infrastructure called the Interwoven Stack, a combination of tools and standards that enables seamless interaction between different environments.

This structure includes:

• Predefined infrastructure that standardizes elements such as data availability and oracles.
• Unified user experience that allows users to move across rollups without dealing with different interfaces or complex steps.
• Development kits (InterwovenKit), enabling teams to deploy new chains and leverage L1 security without starting from scratch.

Shared Liquidity, Security, and Governance

One of Initia’s key concepts is Enshrined Liquidity, a model in which liquidity providers are directly integrated into the network’s security system. This aligns the incentives of validators, developers, and users, fostering an ecosystem where economic participation strengthens technical stability.

The native token, INIT, serves several essential functions:

• Payment of transaction fees.
• Participation in staking and validation.
• Decentralized governance through voting.
• Liquidity provision within rollups and the L1 network.

The maximum supply of INIT is 1 billion tokens, with a market capitalization of around 23 million USD and an approximate price of 0.12 USD per token, according to CoinMarketCap at the time of this article.

Funding and Institutional Support

Initia has captured the attention of major industry players. In October 2023, Binance Labs announced its investment in the project as part of its strategy to support emerging Web3 infrastructure initiatives.

To date, Initia has raised approximately 25 million USD through seed and series A rounds, reaching an estimated valuation of 350 million USD, according to CoinLaunch.

This institutional backing strengthens the project’s position as a long-term contender in the modular blockchain ecosystem.

Ecosystem and Development Tools

The Initia network includes a suite of tools designed to facilitate both the user experience and developer operations:

• Initia App: a web application where users can perform staking, provide liquidity, and participate in governance voting.
• InitiaScan: a multi-chain explorer that allows users to check blocks, transactions, and overall network activity.
• Initia Bridge: a bridge designed to transfer assets between rollups and other IBC-compatible chains.

Additionally, Initia collaborates with projects such as LayerZero Labs, focused on establishing interoperability standards across Cosmos SDK-based chains.

Current Development and Project Challenges

The network is currently in an expansion phase, with visible activity on its explorer and a growing number of available developer tools. However, its application ecosystem is still under construction, and mass adoption will depend on how quickly new app-chains are integrated into the network.

Initia represents a solid proposal within the modular approach that is shaping the future of blockchain infrastructure. Its combination of scalability, interoperability, and developer-oriented tools positions it as a relevant initiative in the Web3 ecosystem.