Ethereum Layer-2 Network Aztec Launches Mainnet with Limited Functionality

Aztec Launches Layer-2 Mainnet

Ethereum layer-2 network Aztec officially launched its mainnet on Wednesday, albeit with partial functionality, marking a significant step towards greater decentralization within the ecosystem.

According to an announcement, Aztec has initiated its "Ignition" mainnet chain, a functional consensus-producing chain capable of generating blocks. However, it currently lacks the smart contract execution layer. Data from L2Beat indicates that only Facet v1, a trustless, optimistic rollup network, and Aztec's previous DeFi anonymization project, Zk.Money, are classified as Stage 2 systems with full decentralization.

Aztec joins Facet as one of the few protocols without centralized "training wheels." Ownership of the rollup contract has been renounced, and Aztec functions neither as a rollup processor nor an operator. Users or third parties must independently manage the rollup system for withdrawals and transactions.

The Aztec team emphasized that “neither the Aztec Foundation, core team, nor investors can run nodes, stake, or participate in governance for the next 12 months.” This positions Aztec as the first community-launched L2 in Ethereum's history.

Aztec Staking Now Live

Staking is now available, empowering AZTEC holders to engage in network consensus, earn block rewards, and influence governance. Early stakers are incentivized with higher rewards due to the initial distribution of block rewards among fewer participants.

The staking dashboard shows over 107 million AZTEC tokens currently staked. With investors and the development team restricted from staking, these funds likely originate from the 200 million AZTEC tokens sold during the genesis sequencer sale, specifically targeted at whitelisted community members to bootstrap the mainnet.

The minimum staking amount (applicable to delegated stakes as well) is 200,000 AZTEC, roughly equivalent to $6,000 at the current prices during the community-only Continuous Clearing Auctions phase. It's important to note that the token price could potentially exceed the current $0.03 per AZTEC if demand increases.

Ongoing Token Sale

Aztec is currently in the whitelisted community members-only phase of its token sale, having raised approximately $2.77 million from over 2,200 bidders since its launch on November 13th. This exclusive phase concludes on December 1st, preceding the public sale commencing on December 2nd and ending on December 6th.

Tokens acquired during the sale will be subject to a lock-up period ranging from a minimum of 90 days to a maximum of 12 months, contingent on a community vote to potentially release them earlier. A total of 1.547 billion tokens, representing nearly 15% of the total supply, will be distributed through this sale.

Aztec claims the token sale offers a 75% discount relative to the implied network valuation based on previous fundraising rounds. Prior funding rounds include a $2.1 million seed round, a $17 million Series A, and a $100 million Series B, with notable backers like Vitalik Buterin, Coinbase Ventures, Paradigm, Consensys, Andreessen Horowitz, and HashKey Capital.

However, Aztec's token sale disclaimer cautions that “any reference to a prior valuation or percentage discount is provided solely to inform potential purchasers of how the initial floor price for the token sale was calculated.” The current floor price is set at 0.000010 ETH, or approximately $0.03 per AZTEC, valuing the project at a fully diluted valuation of $310 million. The disclaimer also clarifies that any unsold tokens “may be claimed back by the Foundation.”

On December 6th, a Uniswap pool containing 273 million AZTEC tokens (2.64% of the total supply) will be established to bootstrap liquidity. Tokens purchased on the secondary market will not be subject to lock-up restrictions.