Sunrise ($RISE) Analysis: Proof of Liquidity and Community-First Token Distribution

Sunrise: Cross-Chain Liquidity Aggregation Infrastructure

Sunrise is the base-layer protocol for building Interliquid Networks, aiming to solve liquidity fragmentation in multi-chain ecosystems through Proof of Liquidity (PoL). Its core technological breakthroughs include:

• Unified Liquidity Curve: Users can exchange assets across chains (e.g., Ethereum ETH for Solana’s JUP) in a single transaction without the need for cross-chain bridges;

• Modular Data Availability Layer: Uses off-chain erasure coding technology to reduce data confirmation time to 15 seconds, 48x faster than Ethereum DA;

• Fee Abstraction: Supports gas payments with any token, automatically converted and settled in RISE.

The community round sale launched on June 3, 2025, features a price of $0.08 and releases 5% of the total $RISE supply (25 million tokens), marking a concrete step in its “community-first” governance philosophy.

This Token Insights article explores Sunrise’s dual-token system and community round mechanism, discussing how Proof of Liquidity transforms cross-chain trading and its regulatory risks.

Community Round Sale: Empowering Real Users First

The community round features a two-stage selection process to ensure fairness:

• Registration Phase (June 3–8): Users must submit email, wallet address, and investment intent, subject to KYC and anti-sybil screening.

• Submission Phase (June 9–13): Only approved users can purchase tokens at the fixed price of $0.08 — the same price offered to seed investors, breaking the industry norm of VC-first profit.

Token distribution reflects a decentralization commitment: 25 million $RISE (5% total supply) will be 100% unlocked at TGE, avoiding the imbalance and pressure from private round lockups. The minimum participation is only $100, significantly lowering the entry barrier for retail users. If fully sold, the project will raise $2 million, primarily used to enhance mainnet security and adapt to multiple virtual machines such as Solana/TonVM. This design makes Sunrise the first cross-chain protocol where community round terms are more favorable than early VC.

Dual-Token Economy: A Functional Loop of RISE and vRISE

Sunrise innovatively structures a complementary token system:

• $RISE (Utility Token): Used to pay gas fees, provide base assets for liquidity pools, and stake for yields. Its allocation emphasizes community leadership — 65.5% goes to ecosystem incentives (airdrop 6.8% + community contributors 30% + liquidity bootstrapping 23.7%), far exceeding internal shares (team 20% + VC 14.5%).

• $vRISE (Governance Token): Non-transferable and only obtainable through liquidity contribution, used for protocol governance voting (e.g., adjusting AMM fee rates) and staking yields. This separation avoids governance being monopolized by speculative capital.

Token release is finely tuned to manage risks:

• Team Allocation (20%) has a 6-month lock-up and 42-month linear release;

• VC Allocation (14.5%) is subject to long-term vesting terms;

• Community Incentives are released dynamically based on ecosystem growth indicators.

This model balances early liquidity needs with long-term inflation control.

Sunrise Technical Competitiveness: Unified Curve and Fee Abstraction

Compared with traditional cross-chain solutions, Sunrise establishes a triple-layer innovation moat:

• Trading UX Upgrade: Ends the complex operations of protocols like LayerZero. Users can trade Solana assets directly on Berachain, reducing steps by 70% and slippage by 53% in tests.

• Fee Abstraction: Eliminates native token holding burden — e.g., when users pay gas with DOGE, the system automatically swaps it into $RISE for settlement.

• Data Acceleration Layer: Uses a P2P Blob network to compress confirmation time to 15 seconds, enabling feasible high-frequency arbitrage strategies.

If the model proves successful, it may drive mainstream protocols like Cosmos IBC to adopt similar architectures and accelerate seamless cross-chain trading.

Risk Challenges: Circulation Shocks and Regulatory Game

The protocol faces two key challenges:

Economic Model Pressure

100% TGE unlock of the 5% community round tokens. If the mainnet launch is delayed or initial trading volume falls short of the targeted daily $50 million, there may be mass sell-offs. Moreover, vRISE’s value depends on protocol revenue distribution — if AMM fee revenue falls below the estimated 40%, governance participation may wane.

Regulatory Grey Areas

Fee abstraction’s automatic token conversion may be classified by the US SEC as “unregistered money services,” referencing the 2024 Coinbase lawsuit. Meanwhile, vRISE’s voting-dividend mechanism raises security classification concerns under EU MiCA rules, potentially requiring an e-money license.
JuCoin‘s regulatory alert system can provide real-time compliance monitoring.

Future Evolution: A Blueprint for Shared Liquidity Across Chains

Sunrise’s roadmap focuses on two major industry shifts:

Sovereign Rollup Integration Plan

Launching in Q3 2025, enabling new chains to share existing liquidity pools and reducing cold start costs by 90%.

AltVM Ecosystem Expansion

Targets emerging VMs like TonVM and MoveVM. 30% of community reserves will be used to incentivize developers to build stateless applications (e.g., Solana-TON cross-chain DEX).

Key success metrics for the protocol include:

Cross-chain Transaction Ratio

Must exceed 40% by 2026 (currently Solana/Berachain at 22%), validating cross-VM architecture demand.

$vRISE Staking Rate

Must stay above 60% to ensure decentralized governance.

As modular blockchain ecosystems explode, Sunrise may become the core liquidity hub of the Interliquid ecosystem — but it must continuously optimize for asynchronous cross-chain risks (e.g., Solana’s 400ms vs Ethereum’s 12s block time).