How Initia Reshapes a Multi-Chain Ecosystem Through An Interwoven Economy

The Challenge of a Multi-Chain Ecosystem and the Rise of Modular Blockchains

Blockchain technology has experienced explosive growth in recent years, but the coexistence of hundreds of independent chains has led to severe fragmentation. Users and developers must switch between different rules, tools, and economic models, with dispersed liquidity and limited interoperability becoming core obstacles to industry development. Against this backdrop, the concept of modular blockchains Initia  emerged, aiming to integrate underlying infrastructure through layered design while retaining the flexibility of application chains.

Initia is a representative project in this field. Its core team is composed of former Terra and Cosmos developers, and since 2023 it has built a modular network that integrates a Layer 1 orchestration layer with a customizable Layer 2 Rollup (called Minitia). This architecture not only solves the disjointed multi-chain ecosystem issue but also unifies cross-chain liquidity and user incentives through an “Interwoven Economy” model.

Initia’s Technical Architecture: The Synergy of Layer 1 and Minitia

Initia’s modular design is built on two core components:

Layer 1 Orchestration Layer

• Built using the Cosmos SDK, it is responsible for global security, cross-chain communication, and liquidity routing within the ecosystem.

• Its innovation lies in the introduction of a hybrid consensus mechanism combining PoS and PoA, which dynamically adjusts block intervals to balance performance and decentralization.

Minitia Application Chain

• Supports MoveVM, EVM, and WasmVM, with a single-chain throughput of up to 10,000 TPS and a block time of only 500 milliseconds.

• For example, applications such as Blackwing (a decentralized leveraged trading protocol) and Tucana (a liquidity aggregation hub) are already running on its testnet, demonstrating high adaptability to specific vertical use cases.

This architecture lowers developers’ entry barriers by standardizing the technical stack (for instance, using Celestia’s data availability layer and IBC protocol), allowing teams to focus on business logic rather than underlying infrastructure. Similar to the Apple ecosystem, Initia provides an all-in-one suite from wallets (Initia Wallet) and block explorers (InitiaScan) to cross-chain interactions, greatly simplifying user operations.

Interwoven Economy Model: Integrating Liquidity and User Incentives

Initia’s economic design revolves around two major innovations:

Enshrined Liquidity

• When users stake INIT tokens or INIT-X LP tokens, they can simultaneously earn liquidity mining rewards and validator node incentives.

• This mechanism combines traditional staking with DeFi liquidity pools, addressing the issue of isolated liquidity in a multi-chain environment. For example, the sUSDe-INIT trading pair launched in collaboration with Ethena Labs allows users to stack staking rewards, sUSDe earnings, and liquidity fees.

VIP Long-Term Incentive Program

• 25% of the total network supply is allocated to the “Vested Interest Program”, with rewards dynamically distributed based on in-app token balances and governance votes.

• This design breaks the “whale domination” in traditional PoS systems and encourages sustained participation by small and medium users.

Another highlight of the economic model is “deINIT”—the first liquidity token (LST) based on staked LP positions. By tokenizing liquidity pool yields composed of 80% INIT and 20% USDC, users can capture compounding effects with a single asset, significantly enhancing capital efficiency.

INIT Token Airdrop and Community Participation

In March 2025, Initia launched its first airdrop, distributing 50 million INIT tokens (accounting for 5% of the total supply) to early supporters. The allocation rules include:

• Testnet Participants (89.46%): Must complete on-chain tasks (such as raising the virtual pet “Jennie” to level 3) and provide feedback.

• Ecosystem Partner Users (4.5%): Covering active addresses on LayerZero, IBC, and Celestia.

• Community Contributors (6.04%): Qualify through active interactions on Discord, Telegram, and Twitter.

The airdrop not only rewards early contributors but also serves as a strategic move to build a cross-chain community. Through gamified testnets and on-chain identity systems (Initia Username), the project has successfully attracted over 3 million independent addresses, laying the foundation for the subsequent mainnet launch.

Ecosystem Collaboration and Future Outlook

Initia has established deep collaborations with protocols such as Ethena Labs and Ether.fi to integrate yield-generating assets like sUSDe and weETH into DeFi scenarios. In addition, its modular framework has attracted more than 11 teams to develop application chains covering AI entertainment, NFT markets, and mobile consumption, with a cumulative financing exceeding US$13 million.

For developers, Initia offers the OPinit Stack framework—the first Optimistic Rollup solution compatible with multiple virtual machines, allowing one-click deployment of application chains. This tool significantly reduces development costs; for example, the gaming platform Embr.fun completed its testnet launch in just two weeks.

As a leading trading platform in the industry, JuCoin remains committed to monitoring the development of innovative projects. Users can obtain Initia ecosystem updates through JuCoin Labs and participate in future token trading and staking activities. As the mainnet goes live, Initia may become the key infrastructure of a multi-chain ecosystem, propelling Web3 towards an era of seamless interaction.