Written by: TechFlow
In June, a violin that once belonged to Russian Empress Catherine II was used as collateral to lend millions of dollars to Galaxy, which once again triggered extensive discussions in the community about the RWA (real world asset) track.
The RWA track has always been considered the largest incremental market in the crypto world by tokenizing real-world assets to break the boundaries of traditional finance. We can also see that both Web3 leaders including Binance and Web2 financial giants such as BlackRock and Franklin Templeton have shown strong interest in the RWA track. With the approval of Bitcoin and Ethereum spot ETFs, RWA-related protocols ONDO and MANTRA have also seen good growth.
According to the Boston Consulting Group, by 2030, the global tokenization market for financial assets is estimated to reach $16 trillion, compared to the current market value of $6 billion for the RWA track. In the foreseeable future, the RWA track still has huge room for growth. In the face of the regulatory uncertainty, technical challenges, and insufficient liquidity that the RWA track currently faces , the modular RWA L2 network Plume Network, which aims to simplify the deployment process and lower the entry threshold for traditional financial participants, has attracted widespread attention.
Recently, with the launch of the test network, Plume Network launched a test network incentive event to attract the attention of the community: the event is based on the concept of "global travel", and users can earn points by exploring different countries (ecosystems), completing travel tasks, inviting friends, etc. to accumulate future airdrop chips.
Prior to this, as the first modular EVM L2 network specifically designed for the RWA track, Plume Network has completed a $10 million seed round of financing led by Haun Ventures, with participation from well-known institutions such as Galaxy Ventures, Superscrypt, and A Capital. In addition, it has attracted support from a number of angel investors including Eric Chen and Mirza Uddin of Injective, Anthony Ramirez of Wormhole Labs, and Calvin Liu of Eigenlayer.
This article aims to take a closer look at Plume Network, and explore the future development opportunities and challenges of Plume Network and the RWA track by understanding how the project provides one-stop customized services for the RWA track through technological innovation and ecosystem construction, as well as the specific gameplay of this test network incentive activity.
The concept of RWA (real world asset) has a long history. It refers to the token that represents the actual assets for trading on the chain. It is a mapping of real-world assets on the chain. In theory, any asset in the real world can be tokenized, whether it is real estate, violins, commodities, or intellectual property.
Through blockchain technology, RWA can significantly reduce intermediary links and transaction costs, and improve the efficiency of asset transactions; through the programmability of blockchain, on-chain assets can be easily split and combined. This high degree of flexibility and composability will give birth to more financial innovations; more importantly, the transparency and immutability of blockchain provide RWA assets with higher transparency and traceability. No matter how the derivatives are packaged, investors can trace their underlying assets, which increases the trust and security of the market.
In recent years, many Web3 technologies have ushered in breakthrough developments: for example, the leap in public chain performance and the development of cross-chain technology have enabled RWA assets to circulate in multiple ecosystems and be combined and integrated into different scenarios; for example, the continuous evolution of Token standards is increasingly in line with the chain requirements of more diverse assets in the real world. This series of progress has provided strong support for the development of the RWA track.
However, on the road to growing into a trillion-dollar market, RWA still faces some challenges:
On the one hand, the entry threshold of RWA is relatively high for traditional asset holders and ordinary users: although many people have expressed interest in RWA, there are certain technical and cognitive barriers to participating in RWA, and many RWA services currently charge high fees, which makes many people reluctant to participate in RWA.
On the other hand, due to the imperfect price discovery mechanism of most RWAs, the lack of an active secondary market, and the lack of unified trading standards and circulation channels for different types of RWAs, the on-chain liquidity of RWAs has also troubled entrepreneurs and investors.
In addition, the attitudes and rules of regulatory agencies in various countries towards the RWA field have not yet been fully clarified, which has brought uncertainty to the development of RWA. How to innovate under the premise of compliance is a major challenge facing the RWA track.
As the first modular EVM L2 network specifically designed for the RWA track, Plume Network aims to lower the threshold for RAW and provide participants with a platform for communication and investment in RWA through a powerful DeFi ecosystem. On the one hand, it introduces incremental users, and on the other hand, it releases the liquidity of the RWA asset chain to build a vibrant ecosystem.
Plume Network's adaptation to the RWA track starts with the transformation of the underlying architecture:
First, Plume Network is built on Arbitrum Nitro, which also supports Arbitrum One and Arbitrum Nova. This choice makes Plume Network highly compatible and consistent with Ethereum, and most smart contracts of Ethereum and other EVM-compatible chains can be seamlessly migrated to Plume Network, greatly reducing the migration cost and time for developers.
Secondly, Plume Network uses Celestia as the data availability (DA) layer. This technical architecture reduces the Gas cost by 99.9%, providing users with a more economical and efficient trading environment. In addition, Plume Network also makes minor modifications to the state transition function based on Arbitrum Nitro and obtains certification from the Ethereum Authentication Service (EAS), both of which will further reduce the Gas cost.
Faced with the entry difficulties for traditional asset holders and ordinary users, Plume Network aims to become the preferred platform for asset issuers to seamlessly deploy RWA projects and for investors to efficiently enter the capital market through a comprehensive end-to-end integrated technology stack.
For asset issuers, the RWA Launcher full-stack tokenized application launched by Plume Network is like a Lego supermarket, which splits every link and module of RWA into pieces of Lego for users to use and combine, helping to unleash the innovative vitality of RWA with a low threshold.
RWA Launcher is completely open source, MIT licensed and free to use. Anyone can run RWA Launcher by following the installation and setup instructions, even if they don't understand the code. Through RWA Launcher, asset issuers can easily complete one-stop services from on-chain identity creation, identity verification, deposits and withdrawals, asset deployment to asset trading according to their own needs. This not only simplifies the operation process, but also significantly reduces the technical threshold and cost of users, prompting more people to participate in the RWA ecosystem.
Taking into account the needs of different categories of real-world assets, Plume Network fully supports multiple token standards such as ERC-20, ERC-721, ERC-1155, ERC-3643, etc. This wide support enables various types of assets to be tokenized and traded on Plume Network, greatly expanding the scope and flexibility of the platform.
Whether it is physical assets such as long-collected red wine, limited-edition sneakers, works of avant-garde artists, or non-physical assets such as stocks and carbon credits, asset issuers can find solutions that meet their needs in Plume Network to achieve low-cost and low-threshold real-world asset chain.
After lowering the entry threshold, the bigger issue is how to truly realize the "value flow" of these real-world assets on the chain in transactions.
Plume Network has signed cooperation agreements with a number of ATS (tokenized securities trading venues that comply with regulatory requirements and are registered with FINRA) from the European Union and North America, such as Texture Capital, Openfinance, Archax, etc. Asset issuers can seamlessly integrate the ATS trading system through APIs to provide investors with primary and secondary market compliance trading services. In addition, Plume Network also supports DeFi primitives such as AMMs, NFT RWA Perp DEX, and RWA lending, further expanding the derivative scenarios of RWA assets. A wider range of trading activities not only provides users with better liquidity and more diverse participation opportunities, but also provides developers with more room for innovation, making the entire ecosystem more prosperous and diverse.
For compliance issues, Plume Network also has powerful compliance tools to help projects be built and circulated in a regulated manner.
As an important part of the token standards supported by Plume Network, ERC 3643 is more in line with regulatory needs: it uses a built-in decentralized identity system called ONCHAINID to ensure that only users who meet specific standards can hold tokens. Issuers of ERC-3643 tokenized assets can access interfaces for setting transfer restrictions, freezing tokens, destroying tokens, and forcing token transfers. These are key operations for RWA tokenized representations regulated by securities agencies.
In addition, Plume Network also provides RWA with a series of tools to help users easily cope with regulatory challenges, including KYC (know your customer), KYB (know your business), anti-money laundering (AML), account abstraction, on-chain arbitration and transfer agent functions. Through these compliance tools, Plume Network can help participants meet the regulatory requirements of different regions and industries.
The powerful technology stack helps achieve seamless on-chain and trading of real-world assets, which is inseparable from the team behind Plume Network's years of deep industry experience, insight into market pain points, and control over product presentation.
According to official information, core members of the Plume team have extensive experience in traditional finance, crypto markets, and RWA:
Plume CEO Chris Yin is a serial entrepreneur who founded Xpenser in 2012 and was acquired by Coupa a year later. He has since joined several leading companies including Scale Venture Partners, Rainforest QA, and Coupa Software and held important positions.
Plume's Chief Technology Officer EUGENE SHEN has worked at Robinhood Crypto and dYdX and undertook important development work.
Plume Chief Business Officer TEDDY PORNPRINYA joined Coinbase Ventures in 2021 to be responsible for venture capital-related work, and later joined Binance as BD Director.
The team's impressive track record provides Plume with all-round support in terms of technical support, market experience, and cooperative resources. We can see that even though it is still in the testnet stage, the Plume Network ecosystem has already achieved impressive performance.
Currently, Plume Network has attracted more than 100 projects to build on its platform , covering multiple categories such as collectibles, synthetic assets, luxury goods, real estate, lending protocols, and perpetual DEX. The diversified ecosystem also further demonstrates the wide application potential of Plume Network and the RWA track.
In addition, Plume Network will implement a series of incentive measures to continuously empower ecological expansion:
For developers, Plume has launched the Plume Aviation Academy program to provide technical training, resource support and funding to developers interested in building RWA projects based on Plume.
For ordinary users, Plume has previously launched an ambassador program to encourage users to get rewards through promotion and participation in community activities. At the same time, the Plume Network testnet incentive activity is underway, and users can also earn points by participating in the testnet incentive activity.
Plume's testnet incentive activity revolves around the concept of "global travel". Users can earn Plume points by visiting different countries (ecological projects), collecting stamps, completing travel tasks, and using invitation codes to invite friends. On the one hand, this activity aims to fully test the functions and performance of the network, and on the other hand, it hopes to encourage users to explore the Plume ecosystem in depth and experience its rich and diverse products and services through a points reward mechanism.
In addition to participating in testnet incentive activities to explore the ecosystem, Plume’s official social media also announced a series of ways to earn more points.
First, users can participate in minting Plume Goon NFTs to get points acceleration.
In the setting of the Plume testnet activity, the function of Plume Goon is equivalent to the passport of the Plume ecosystem. Users can use Plume Goon to travel around the world (Plume ecosystem) and explore different ecological sectors to complete travel tasks and collect passport stamps. The more stamps users collect, the more points rewards they will receive.
Users can log in to the Plume official website and link their wallet to check the Mint qualification of Plume Goon. If not, don’t worry. Users can obtain Mint qualification by joining the Plume community and more cooperative communities.
Holding Plume Goon NFT will greatly optimize the user's testnet participation experience, including obtaining additional Plume points, accelerated points, and the opportunity to upgrade to rarer NFTs, etc. Currently, the number of Plume Goon NFT mints has exceeded 100,000.
Secondly, users can invite friends to upgrade their cabins to earn more points and speed up.
The Plume testnet activity is divided into 4 different onboarding groups:
Users with different contributions will be assigned to different boarding groups, each with different degrees of point acceleration, and users can upgrade their registration groups by inviting friends. Once a user mints the Plume Goon NFT, they will also receive a registration invitation code that is exclusive to them. Users can use this invitation code to invite more users to participate in the Plume test. The more friends you invite, the higher the level of your boarding group, and the more generous the points reward you will receive.
In addition, users can also earn more points by checking in daily, following social media, etc. to improve their ranking in the points rankings, and higher points rankings will also receive points acceleration.
Similar to most projects whose tokens have not yet been launched, Plume's ecological incentives are currently presented in the form of points (Plume Miles), and the points will be deeply linked to future token airdrops to reward early users for their support and contributions. Therefore, for most users, participating in this testnet incentive activity is currently an effective way to earn more points and accumulate airdrop chips.
In general, RWA, as a key bridge connecting traditional finance and the world of cryptocurrency, is showing its huge development potential and broad growth space. RWA represents a large number of various assets in the real economy, and its digitization and application on the blockchain will bring profound changes to the entire financial industry.
As the first modular EVM L2 network designed specifically for the RWA track, Plume is bringing wider accessibility, liquidity and innovative vitality to RWA by lowering the threshold, improving liquidity and promoting compliance. With the launch of the testnet incentive activities and the realization of many important milestones, Plume will usher in a new round of rapid project development cycle in the foreseeable future. However, it is worth noting that the project is still in the early stages of the testnet, and Plume's vision for the RWA track still needs to observe the series of performance after the mainnet is launched.
In any case, as a newcomer in the RWA track that has attracted much attention from the community, we expect Plume Network to be an important driving force for the transformation of traditional finance to modernization, bringing more new momentum and development opportunities to the entire industry.
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