SABAK DAS

Key Takeaways

Initia combines Layer 1 and Layer 2. It offers a base blockchain (Initia L1) and a network of customizable rollups, making it easier to build and manage blockchain apps.

The Interwoven Stack provides developer-friendly tools out of the box. These include solutions for bridging, governance, liquidity, and more.

InitiaDEX powers liquidity across the network, while the VIP program and INIT token rewards active users and projects.

Introduction

Initia is a blockchain project that brings together a Layer 1 blockchain and a network of customizable Layer 2 rollups. The idea is to make it easier for developers to build their own blockchains and apps — without having to deal with all the technical headaches that usually come with it. With built-in tools and infrastructure, Initia helps create a connected, scalable, and easy-to-use multichain ecosystem.

Why Initia?

A lot of blockchain projects leave every decision up to developers, which can slow things down or lead to messy setups. Initia takes a different approach. It makes some of those tough infrastructure choices ahead of time — like how data is stored, how blockchains talk to each other, and how oracles are used — so developers can focus on building great apps.

The result is something called the Interwoven Stack — a set of tools and systems that make it much easier to launch and manage custom blockchains (also known as rollups).

How Initia Works

Initia has three main parts:

Initia L1: The Layer 1 blockchain that everything else connects to.

Interwoven Rollups: Custom Layer 2 chains that run on top of Initia L1.

Interwoven Stack: A development framework that provides tools, standards, and infrastructure for building and operating rollups and applications.

Initia L1: the base layer

Initia L1 is built using the Cosmos SDK and acts as the main coordination and liquidity layer. As the base layer, it’s involved in various functions, including:

Security: Rollups plug into L1 for security features like bridging tokens, verifying data, and catching fraud.

Liquidity: It has a built-in DEX called InitiaDEX, which makes it easy for users and rollups to swap tokens and share liquidity.

Communication: L1 helps different rollups talk to each other. It can also help them connect with other blockchain ecosystems.

Incentives: The L1 powers reward programs like the VIP (Vested Interest Program) and Enshrined Liquidity.

Interwoven Rollups

Rollups are like mini blockchains built on top of Initia L1. What’s cool about them is how flexible they are. Developers can customize key aspects of their rollup, including:

Virtual machine: You can pick between EVM (for Ethereum compatibility), MoveVM, or WasmVM.

Gas and fees: Want to use INIT, stablecoins, your own token, or a combination of assets? Each rollup can set its own fee systems.

Transaction ordering: Developers have the option to implement custom methods of transaction ordering, which can be useful for more specific requirements.

Basically, you get to customize your own Layer 2 blockchain without starting from scratch.

The Interwoven Stack

The Interwoven Stack is a suite of tools that simplifies the development and operation of rollups. It gives you the tools you need to launch and manage your rollup from day one. The Interwoven Stack includes:

Prebuilt SDKs for creating rollups and integrating with Initia L1.

Native solutions for tasks like bridging, messaging, governance, and liquidity management.

A set of standards and templates that help ensure compatibility across the ecosystem.

InitiaDEX

InitiaDEX is the built-in decentralized exchange on Initia L1. It supports Weighted Pools (like Balancer) for trading different assets and StableSwap Pools for trading assets with similar values (like stablecoins).

The DEX is designed to be the main place for rollups to access and share liquidity. It enables both routine and advanced cross-rollup swaps, and serves as a foundation for applications that depend on deep, accessible liquidity.

The DEX also supports Enshrined Liquidity, where certain liquidity pools are approved by governance to serve as staking assets. This helps align network security and economic incentives with market activity.

Ecosystem Rewards

To keep users and developers engaged, Initia runs the Vested Interest Program (VIP). It distributes INIT tokens to rollups and users based on things like:

Total Value Locked (TVL) in a rollup.

On-chain activity (like number of transactions).

Participation in governance.

This system is designed to reward the projects and users who help grow the network.

Other Tools in the Ecosystem

Initia also includes:

Initia app: A dashboard to explore the ecosystem

Initia scan: A block explorer

Initia usernames: A name service that works across rollups

Initia multisig: A tool for managing wallets with multiple signers

All of these are built to make the ecosystem easier to use for both developers and end users.

The INIT Token

INIT is the native token of the Initia ecosystem. Here’s what it does:

Gas fees: Used to pay for transactions on both L1 and eligible rollups

Staking: Helps secure the network when users delegate their INIT

Governance: Lets holders vote on how the network evolves

Rewards: Used in reward programs like VIP to incentivize activity

INIT has a total supply of 1 billion tokens. Some of it goes to staking, some to developers, and some to users through programs like Binance Launchpool.

INIT on Binance Launchpool

On April 17, 2025, Binance announced INIT as the 68th project on the Binance Launchpool. Users who locked their BNB, FDUSD, and USDC during the farming period were eligible to receive INIT rewards. A total of 30 million INIT tokens were allocated to the program, accounting for 3% of the total token supply.

After the farming period, INIT will be listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Initia presents a modular, developer-friendly approach to building scalable blockchain applications. It combines a Layer 1 blockchain with customizable rollups and a full toolkit for developers. Initia wants to make it easier to build apps in Web3 without the typical roadblocks that come with multichain setups.

Further Reading

What Is Blockchain and How Does It Work?

What Is Layer 1 in Blockchain?

What Is Cross-Chain Interoperability?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.