Status has announced plans to launch an L2 rollup and a staking mechanism for its native token, $SNT, which will unlock a new public funding model and establish a collaborative, open Status ecosystem.
Following a governance vote, Status community members prioritized more utility from $SNT through staking and launching Status Network, an L2 rollup on Ethereum. Status Network is designed as an open playground for communities, focusing on public funding and geared towards social apps, GameFi, and governance experiments.
It is designed as a thin execution layer with minimal transaction fees and low operating costs, ensuring that most of the value created by the chain can be returned to participants.
According to the press release, Status Communities, the token-gated censorship-resistant community spaces currently active in the Status app (beta), will benefit from reduced costs thanks to Status Network.
Status Community owners can associate non-fungible tokens deployed on Ethereum and compatible Layer-2 networks with token-gated permissions, bringing new utility to existing tokens. The new L2 will reduce admin costs and enable sponsoring, in line with Status’ commitment to remaining accessible.
Status is also working on a dynamic governance and engagement incentive plan designed for $SNT holders, including the implementation of veTokenomics and a new experience points (XP) program to encourage community engagement.
If implemented, $SNT holders can stake $SNT for voting rights over Status’ public roadmap and allocation of public funding, giving voters the opportunity to earn XP, which are multipliers of voting power of staked $SNT. “Engaged onchain participants, such as those activating Status in-app actions, could potentially gain an impactful amount of governance influence within Status over time,” says Status.
A native public funding pool is also planned to be developed through various funding sources, including excess gas fees from L2 rollup operations, partner rewards, and external yield.
Funds from this pool will be allocated based on $SNT holders’ community votes, benefiting a wide range of participants like Status Communities, liquidity providers, app and protocol developers, yield markets, and infrastructure providers.
