A New Era of Decentralization
Aztec, a prominent player in the blockchain space, has taken a significant step by launching its
Ethereum layer-2 network mainnet, albeit with limited functionality. This marks a notable milestone in the realm of decentralized networks, as Aztec's "Ignition" mainnet chain is now operational. While the mainnet is generating blocks, it currently lacks the smart contract execution layer, a crucial component for full functionality. This launch positions Aztec among a select group of fully decentralized networks within the Ethereum ecosystem, alongside other notable projects like Facet v1 and the older Zk.Money. The launch of Aztec's mainnet is a testament to the project's commitment to decentralization. Unlike many other protocols, Aztec has removed centralized control by renouncing ownership of the rollup contract. This means that Aztec is neither a rollup processor nor an operator, and users or third parties are required to run the rollup system independently to conduct transactions or withdrawals. This bold move underscores Aztec's dedication to creating a truly decentralized network, free from centralized "training wheels."
Community-Driven Governance
In an email to its subscribers, the Aztec team emphasized that neither the Aztec Foundation, its core team, nor its investors will have the ability to run nodes, stake, or participate in governance for the next 12 months. This unique approach makes Aztec the first community-launched layer-2 network in Ethereum's history. By placing control in the hands of the community, Aztec is setting a new standard for decentralized governance within the blockchain industry. Staking has now become available to AZTEC token holders, allowing them to participate in network consensus, earn block rewards, and influence governance decisions. Early stakeholders are incentivized with higher rewards, as they benefit from distributing block rewards among a smaller group of stakers. Currently, 107.2 million AZTEC tokens are staked, with funds likely sourced from the 200 million AZTEC tokens sold during the genesis sequencer sale. This sale was specifically targeted at whitelisted community members to bootstrap the mainnet.
Token Sale and Market Dynamics
Aztec is currently in the midst of a token sale phase restricted to whitelisted community members. Since its commencement on November 13, the sale has attracted $2.77 million worth of assets from 2,209 unique bidders. This phase is set to conclude on December 1, paving the way for a public sale from December 2 to December 6. Tokens purchased during this sale will be subject to a lock-up period ranging from 90 days to 12 months, depending on community votes regarding early release. The token sale aims to distribute 1.547 billion tokens, representing 14.95% of the total supply. Aztec claims that the sale is being conducted at a 75% discount compared to the implied network valuation from previous fundraising rounds. The project has already raised substantial funds, including $2.1 million in its seed round, $17 million in its Series A, and $100 million in its Series B funding rounds. Notable backers include Ethereum co-founder Vitalik Buterin, Coinbase Ventures, Paradigm, Consensys, Andreessen Horowitz, and HashKey Capital.
Looking Ahead
Despite the promising developments, Aztec's own token sale disclaimer cautions that references to prior valuations or percentage discounts are solely for informational purposes. The current floor price for the token sale stands at 0.000010 ETH, or approximately $0.03 per AZTEC, resulting in a fully diluted valuation of $310 million. The disclaimer also notes that unsold tokens may be reclaimed by the Aztec Foundation. As the token sale progresses, a Uniswap pool containing 273 million AZTEC tokens, equivalent to 2.64% of the total supply, is set to go live on December 6 to enhance liquidity. Tokens acquired on the secondary market will not be subject to lock-up periods, offering more flexibility to investors. Aztec's launch of its decentralized and private Ethereum layer-2 network represents a significant advancement in the blockchain space. By prioritizing community-driven governance and decentralization, Aztec is setting a precedent for future projects in the industry. As the network continues to evolve, it will be intriguing to see how Aztec's innovative approach influences the broader
Ethereum ecosystem and the decentralized finance landscape as a whole.
