20.01.2021

Nervos Network Targets November Launch With $72 Million Token Sale

The company announced Wednesday that developers and miners will be able to participate and utilize its network on Nov. 16, with fresh backing from China Merchants Bank International (CMBI), Polychain Capital, Blockchain Capital, Hashkey, MultiCoin and Distributed Global supporting its efforts.

Blockchain startup Nervos Network plans to launch its “Lina” blockchain next week, on the heels of securing $72 million through a token sale on Coinlist.

The company initially sought to raise $50 million for the network, exceeding this amount through its three-week sale. Nervos declined to disclose the exact amounts of investment from each major investor.

“The mainnet will enable users to build applications on our blockchain without facing the tradeoff between scalability and security,” Nervos Network co-founder Kevin Wang said.

Wang told CoinDesk the mainnet’s two-layer structure allows users to build decentralized applications on a secure, public layer but actually run the applications on its second layer, promising “unlimited” scalability through this function.

The company’s new CKByte token entitles holders to storage space on the blockchain, acting as an incentive mechanism for miners and acting as a resource management tool.

According to the token’s official public offering statement, the company would use 23.5 percent of the initial token supply to encourage open-source contributions and business partnerships.

Wang said the mainnet could be used as the technical infrastructure for a variety of use cases ranging from decentralized finance platforms to assets tokenization.

Nervos had developed applications for the Chinese banking giant CMBI even before the mainnet launch. There are certainly more opportunities to collaborate with other financial institutions to build Defi applications after the launch, Wang said.

The company has established its significant presence in the Chinese developers’ community as some of the core team members are among the earliest ethereum developers in the country.

Nervos previously secured $28 million in Series A funding last year. The financing round was led by Polychain and private equity giant Sequoia China.

The fundraising was a private sale that guarantees 14 percent of the initial token distribution for the investors in 2019, Wang previously told CoinDesk.

The company will use the proceeds to invest more in research and development to improve the network, and incentivize more miners and developers to use the network, according to Wang.

Nervos Network Will Hand Out $30M to Encourage Third-Party Development

Nervos Network has set up a $30 million public grant fund to sponsor external developers building on its blockchain infrastructure.

Announced Thursday, the fund will pay developers in the combination of cash and CKByte tokens, and all submitted projects will be made public to source feedback from the broader community, Nervos co-founder Kevin Wang told CoinDesk.

Individuals, teams and companies can begin submitting applications for improving the firm’s layer one blockchain Common Knowledge Base (CKB).

“We hope applicants can help find ways to make our infrastructure more user-friendly,” Wang said. “We will be more interested in potential applications on top of our blockchain over time.”

The company plans to look at the applicants’ backgrounds as well as the proposals themselves. Wang said the review process will also include examining the resources and groups behind the applicants.

Grants will be Initially awarded to proposals focused on infrastructure developments such as client protocols, development environment, cross-chain interoperability, smart contract language and tooling, the firm said.

As Nervos begins building the foundation of its permissionless two-layer blockchain network, the firm tried to assemble a tool kit that developers can use to program and build applications on the platform, according to a release.

As one of the earliest blockchain adopters in China, Nervos has raised over $100 million and partnered with some of the largest state-owned companies in the country. It has been working with China Merchants Bank International on decentralized finance applications.

In November, the project launched its mainnet Lina and completed its $72 million token sale on Coinlist in the same month. It has previously secured $28 million in Series A funding in a round led by Polychain and private equity giant Sequoia China.Nervos will use 23.5 percent of the initial token supply to encourage open-source contributions and business partnerships, according to its token’s public offering document.

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