Nervos Network to Launch Lina Blockchain After Securing $72 Million In Token Sale on Coinlist
Nervos Network, a blockchain startup, has announced the launch of Lina Blockchain. The startup is planning to launch its new project next week. Lina Blockchain will secure about $72 million from token sales of Coinlist. Miners and developers will have an opportunity to participate and utilize the company’s network on November 16. Nervos Network has the backing of Polychain Capital, Harshkey, Blockchain Capital, China Merchants Bank International, MultiCoin, and Distributed Global all in support of its efforts.
“The mainnet will allow users to develop applications on the blockchain without having to face a tradeoff between security and scalability,”
said Kevin Wang, the Co-Founder of Nervos Network. The mainnet has a two-layer structure where users build applications on the public layer and running them on the second layer.
Nervos Network was initially targeting to raise about $50 million for its network and exceed that amount in a three-week sale. The company has, however, declined to disclose the specific amounts of investments made by major investors.
With Nervos Network’s new CKByte token, users can access the blockchain’s storage space. This serves as a resource management tool as well as an incentive mechanism for miners. The token’s public offering statement shows that Nervos Network can use 23.5% of its initial token supply to encourage business partnerships and open source contributions.
Last year alone, Nervos managed to secure $28 million in funding. According to Wang, the fundraising was a private sale. The fundraising round was led by Sequoia China, a private equity, and Polychain. The fundraising guarantees a 14% initial token distribution for investors this year. The company will use the proceeds to incentivize more developers and miners to use the network and invest in research aimed at improving the network.
According to Wang, the company’s mainnet can serve as the technical infrastructure for various uses, from asset tokenization to a platform for decentralized finance. Even before the launch of the mainnet, Nervos had developed applications for China Merchants Bank International. After the launch, the company will work with more financial institutions to develop Defi applications.
Some of the team members in the company are among the earliest Ethereum developers in China hence establishing a significant presence in the developers’ community in the country.