Blockchain interoperability project Connext will launch its native token, called Next, on September 5 — more than a year after the initial announcement. The Connext team also plans to airdrop its Next token to early users across Polygon, Arbitrum, Optimism, and Gnosis Chain, and the claims will begin on September 5.
Connext serves as a cross-chain messaging protocol, enabling transfer across multiple blockchains. It has processed more than 1.1 million transactions across different blockchains with a cumulative volume of $1.6 billion
The Next token will allow the network’s routers (whose role is similar to validators) to have the opportunity to stake Next tokens. The token will allow routers to secure the interoperability network and earn fees that are proportional to their stake.
Next tokens will have further utility as a governance tool for Connext’s ecosystem through a decentralized autonomous organization.
“At launch, the Next token will be used for tokenholder governance in the Connext DAO,” Arjun Bhuptani, founder and CEO of Connext, told The Block. “Subject to DAO approval and community development, the token could also be used to enshrine common governance operations, such as fair router utilization and asset/chain support, directly into the protocol itself through activities such as staking of Next tokens.”
Bhuptani added that the team aims to achieve “ungovernance” in the long run, a system where Connext’s governance will no longer have the ability to modify most of its core contracts. In this system, many parameters will be determined autonomously with code no longer requiring human intervention.
Connext’s cross-chain airdrop service with Tokensoft
The announcement comes as Connext is partnering with Tokensoft to introduce what’s known as “crosschain airdrops as a service”. With this service, recipients of airdrops can claim tokens on any chain without needing to bridge or incur extra gas fees. The service will launch with the Next airdrop.
The airdrop claim service leverages Connext’s recently released xERC20 token standard, allowing assets to move across chains without slippage.
In June 2023, Connext raised $7.5 million in a strategic funding round at a valuation of $250 million, bringing the team’s total funding to $23.5 million.