Understanding U2U: A Comprehensive Overview

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Key Insights

  • U2U Network’s subnet design delivers a scalable, customizable, and secure Layer-1 blockchain, optimized for Decentralized Physical Infrastructure Networks (DePIN).
  • Led by industry veterans such as Co-Founder & Co-CEO Luu Tran and Chloe Phung, U2U Network’s leadership team has experience in blockchain technology and business development.
  • U2U Network successfully raised $13.8 million from investors, including Chain Capital, IDG Blockchain, and KuCoin Ventures.
  • U2DPN, U2U Network’s flagship product, has over 60,000 contributors across more than 100 countries. By integrating Directed Acyclic Graph (DAG) algorithms with Asynchronous Byzantine Fault Tolerance (aBFT) and Delegated Proof of Stake (DPoS), U2U ensures high transaction throughput, enhanced security, and scalability.
  • With nearly 100 applications and a user base exceeding 1 million, combined with developer tools and initiatives like the DePIN Alliance, U2U Network fosters a dynamic and expanding ecosystem.

Introduction

U2U Network began its journey in 2023, emerging from stealth amidst a highly competitive Layer-1 infrastructure market. U2U aimed to provide a scalable and decentralized solution for real-world applications, leveraging modular technology, a multi-sharding mechanism, and subnet technology.

In 2023, U2U launched the Nebulas Testnet. In August 2023, the Solaris Mainnet went live, showcasing the Helios Consensus, designed for high transaction throughput and security.

In early 2024, U2U released the U2U Super App, enabling interaction with the U2U ecosystem and quickly gaining thousands of downloads. Shortly after, U2U launched U2DPN, a decentralized private network leveraging the subnet technology, transforming ordinary devices into contributor nodes to democratize internet access and enhance privacy. In mid-2024, U2U rebranded to “Unleash the Utopia,” reflecting its vision of an ideal, forward-thinking ecosystem.

By the time of writing in late 2024, U2U had launched major products, built strategic partnerships, and established itself as a leader in Decentralized Physical Infrastructure Networks (DePIN).

Background

Team

The U2U Network founding team is composed of experienced professionals in blockchain, technology, and business development.

  • Co-Founder and Co-CEO Luu Tran was an early contributor to Ethereum and former CTO of KardiaChain. Additionally, Luu led GameFi projects like My DeFi Pet and Thetan Arena.
  • Co-Founder and COO Tran Anh, former CEO of Timebit OTC which is Vietnam’s largest OTC crypto marketplace. He was also the Co-Founder and Head of Research at MaxxCapital.
  • Co-Founder and Co-CEO Trang Phung was the former CEO of Bvnex.com, Vietnam’s first fiat-to-crypto exchange, and also a leader of Y-Combinator backed Fintech startup. She was appointed as Co-CEO in August 2024.

Outside of the founding team, core contributors include Jennize Nz as Chief of Staff, Ryan Bui as Head of Ecosystem, Astrid Dang as Chief Business Officer, Minh Pham as Marketing Manager, and Thuc Bui as Head of Research.

Overall, the U2U Network has over 120 members, supporting operations in more than 20 countries. The community leadership team is headed by Mr. Fox Linton and the Ambassador Lead Mr. Toan Pham.

Investors

Source

U2U Network announced its Seed Round funding on June 27, 2024, followed by a series of strategic investments. As of November 2024, U2U has raised $13.8 million, with key investors including:

  • Chain Capital
  • IDG Blockchain
  • Cointelegraph
  • KuCoin Ventures
  • V3V Ventures
  • JDI Ventures
  • U2 Venture
  • UB Ventures
  • Blockhive Capital
  • MAXX Capital
  • Tesseract Capital

Technology

Overview

The U2U Chain combines Directed Acyclic Graph (DAG) algorithms with the Inter-ledger Protocol (ILP) to create a platform for decentralized application development. It aims to deliver scalability, security, and interoperability. The platform integrates advanced technologies like the DAG algorithm for high throughput and low latency, and ILP for interoperability with other blockchain networks and traditional financial systems. Additionally, the U2U Chain supports EVM-compatible smart contracts and tokenization.

Helios Consensus

The Helios Consensus is at the core of U2U’s blockchain infrastructure, designed to provide scalability, security, and efficient consensus. Built on DAG technology, Helios addresses the scalability limitations of traditional blockchains. It leverages Asynchronous Byzantine Fault Tolerance (aBFT) and Delegated Proof of Stake (DPoS) to achieve efficient and secure consensus among network participants. The aBFT provides security against malicious actors, while DPoS elects trusted validators to improve transaction speed and scalability.

To enhance scalability, U2U employs consensus-based sharding, which divides validators into clusters to improve transaction speeds. Security is reinforced by combining dPOS, Proof of Reputation, aBFT, and Trusted Execution Environment (TEE), providing a multi-layered protection system as it scales to accommodate various DePIN applications.

Subnets

U2U Subnets are an integral part of the network’s architecture. Each subnet operates as a set of peer-to-peer nodes, utilizing the Ostracism Virtual Machine (OVM) to execute decentralized applications. Subnets inherit the security and consensus properties of the U2U Network while also allowing node operators to contribute computing resources such as CPU, GPU, and storage. There are three types of subnet nodes:

  • Master Nodes: Responsible for transaction management, data availability, and cross-network operations. Master Nodes are compensated through transaction fees and proof rewards.
  • Verifier Nodes: Leverage Trusted Execution Environment and Fully Homomorphic Encryption (FHE) to validate data integrity and ensure privacy.
  • Edge Nodes: Provide computational resources and are rewarded based on their contributions to network capacity and protocol-specific operations.

U2UDPN

The U2U Network has introduced its Decentralized VPN (de-VPN), which is built on the DPN subnet. This de-VPN is the first of its kind launched on mobile devices and has already attracted over 60,000 contributors from more than 100 countries. The de-VPN leverages the subnet infrastructure to create a distributed VPN service.

Client Application Hub

Recognizing the fragmentation in DePIN infrastructure, U2U has developed a client application hub to aggregate and streamline user participation in DePIN projects. This hub allows users to manage their contributions to multiple DePIN projects through a single platform, significantly enhancing the user experience, driving adoption, and fostering ecosystem growth.

Developer Tooling

To simplify development, U2U offers comprehensive developer tools and an ecosystem that supports multiple programming languages, including Python, Go, Rust, and TypeScript. The OVM allows these applications to run natively with formal verification, providing security and ease of deployment for developers.

Tokenomics

U2U Token Overview

The U2U token plays a central role in the U2U Network, providing utility, governance participation, and incentives to support the ecosystem’s development. The token’s utilities include:

  • Transaction Fees: U2U tokens are used to pay for transaction fees when users send transactions or interact with smart contracts on the network.
  • Staking and Security: The tokens are essential for staking, where validators or delegators lock up a certain amount of U2U to participate in the consensus mechanism.
  • Governance: Token holders are granted governance rights, allowing them to participate in decision-making processes related to protocol upgrades, changes in network parameters, and the allocation of resources.
  • Incentives and Rewards: U2U tokens serve as rewards for users who engage in various activities, such as providing liquidity, participating in governance, or contributing to the network’s development.
  • Collateral for DeFi: The tokens can be used as collateral for loans, staking in liquidity pools, and other products within the DeFi ecosystem.
  • Utilities within Subnets: U2U tokens are used within subnets for various functions. Subnet Node Operators can use the tokens to pay for Verification Nodes between Subnet and the Layer 1 network. Additionally, they can be used as payment currency, to hire resources from Subnet Node Operators, or to pay for services within subnet-specific dApps.

U2U Token Allocations and Vesting

The maximum total supply of U2U tokens is 10 billion. The initial allocation and vesting schedule are as follows:

  • Team Allocation (1 billion; 10%): Allocated to the core team to incentivize the development and ongoing efforts in the U2U Network. These tokens are subject to a multi-year vesting period to align incentives with the long-term success of the network.
  • Advisors (500 million; 5%): Allocated to strategic advisors who support the project’s growth. These tokens have a vesting schedule that includes an initial unlock of 25 million tokens, with the remaining tokens gradually released over time to maintain continued involvement and guidance.
  • Ecosystem Growth and Development (3 billion; 30%): Dedicated to the growth of the U2U ecosystem, including funding partnerships, developer incentives, and community initiatives. These tokens are distributed over a 48-month vesting period to ensure sustained support for the ecosystem.
  • Mining and Rewards (4 billion; 40%): Allocated for rewarding participants who contribute to network security and infrastructure. These rewards are based on effective participation, such as running validation nodes, and are released continuously to encourage ongoing contributions.
  • Vendor and Marketing (1.5 billion; 15%): Allocated for marketing activities and vendor payments to promote network adoption and establish strategic partnerships. These tokens are used to ensure the U2U Network remains competitive and maintains a strong market presence.

U2U Token Public Sale and Airdrop

The U2U token distribution included successful public events, including the U2U Public Sale on Fjord Foundry, which sold out in 40 minutes on December 2, 2024. U2U Network also launched its first airdrop for early supporters, targeting Planet NFT collectors, Galxe Campaign participants, and DePIN Alliance App users.

Wintermute joined as U2U Network’s Liquidity Provider, ensuring stability and liquidity for the U2U token and supporting its upcoming listing.

Ecosystem Overview

U2U Ecosystem

The U2U Network ecosystem has grown substantially, now supporting nearly 100 applications, with more than half focused on DePIN. U2U has also attracted a significant user base, exceeding 1 million users, with over 100,000 daily active users. The global community spans key markets, including Japan, Korea, Turkey, and Russia. Strategic partnerships with major industry players further strengthen U2U’s position in the market.

Notable protocol launches in the U2U ecosystem include X721 Marketplace and GroFi Dex. X721 is the first NFT Marketplace to launch on U2U, complete with a launchpad. GroFi Dex is a concentrated liquidity market maker that offers a range of customizations, fee tier options, and yield-earning opportunities. U2U has also announced wallet integrations, including support from Holdstation Wallet and OKX Wallet. Owlto is the official bridge for U2U Network.

In early 2024, U2U released the U2U Super App, enabling interaction with the U2U ecosystem and quickly gaining thousands of downloads. The U2U Super App is available on both the App Store and Google Play. It features a self-custodial wallet, while providing a smooth experience and supporting a wide range of assets and standards, including ERC-20 and ERC-721 (NFT) standards.

U2U DePIN Ecosystem

U2U Network places a strong emphasis on supporting the DePIN sector. In October, U2U Network saw further DePIN ecosystem growth by forming strategic partnerships with over 13 projects and reaching out to over 300 potential partners.

The U2UDPN is the core team’s DPN product, a mobile-based decentralized VPN service built on the DPN subnet and available on both iOS and Android. Unlike traditional VPNs that rely on centralized servers, U2DPN uses a distributed network structure powered by individual bandwidth sharers, making it more resilient and secure by eliminating centralized points of attack. By leveraging unused internet bandwidth, U2DPN turns it into a valuable asset, allowing users to share and earn. Users can connect via a pay-as-you-go plan for flexible access to shared bandwidth. U2DPN boasts over 1,500 active consumers, 113,000 sessions served, and more than 69,000 GB of bandwidth shared.

U2U Network also supports several notable projects within the DePIN ecosystem, including:

  • Ermis: Ermis is a messaging application providing APIs and SDKs that enable developers to build and scale in-app real-time chat, video, and streaming.
  • LayerG: LayerG is a comprehensive gaming infrastructure platform that supports the development and deployment of gaming applications within the U2U ecosystem. It provides the necessary tools and resources for game developers to create, scale, and manage blockchain-based gaming projects.
  • Ultimate Digits: Ultimate Digits transforms users’ existing mobile numbers into their crypto wallet addresses. For privacy-conscious users, Ultimate Digits also offers virtual Web3 mobile numbers as NFTs on Ethereum. These Web3 identifiers are ITU E164-compliant mobile numbers, starting with the unique +999 country code, offering a seamless link between traditional mobile services and blockchain technology.

DePIN Subnet

On October 24th, U2U Network launched its DePIN Subnet Public Node Tier 1 Sale, which saw strong interest. The 1,000 Public Node Tier 1 slots sold out in just 5 hours, with over 3,400 eager users on the waitlist. U2U Network also showcased its success with an LED billboard display at Times Square, New York. For those who missed the website sale, the DePIN Subnet Node is also available on CVPad and RapidNode.

The U2DPN mobile application is available on both iOS and Android, and has reached over 60,000 downloads collectively. The iOS version was launched in May, and users can share bandwidth and earn rewards directly from their iPhones. The app has seen significant engagement, with approximately 70,000 total contributor nodes, 1,500 daily active contributors, and over 50 million sessions served.

Developer Activity and Events

U2U Network places a strong emphasis on fostering developer engagement and collaboration. One of the key initiatives is the formation of the DePIN Alliance, established in partnership with Chain Capital and JDI Ventures. The DePIN Alliance aims to unite top innovators to transform global infrastructure through decentralized technology. The Alliance includes members like Blockus, Lightnet, and Zero1 Labs, and continues to expand its membership to provide valuable resources to developers and build community-driven infrastructure. The DePIN Alliance Telegram group boasts more than 600,000 monthly active users.

Additionally, U2U kicked off a Roadshow in Indonesia in July, hosting two DePIN gatherings that attracted builders, developers, and investors. U2U also hosted the DePIN Alliance Yacht Party at Vietnam Blockchain Week, drawing over 150 VCs, industry leaders, and influential figures. Continuing the DePIN Alliance series, U2U hosted ‘DePIN Alliance: Where DePIN, AI, and IP Converge into RWA’ at TOKEN2049 Singapore, uniting VCs and builders to discuss integrating advanced technologies into everyday life and infrastructure. The tour also included stops at Korea Blockchain Week, ETHCC, and Token2049.

U2U recently participated in the Vietnam Tech Impact Summit 2024, the nation’s largest high-tech annual event, hosted by SSI and FPT. The summit gathered over 20,000 attendees, 100 speakers, and major players such as Google, AWS, and Oracle. U2U Network joined as a strategic partner and also hosted an exclusive stage for DePIN, co-hosted with DIN and Aethir Edge. At this stage, U2U also organized the ‘Startup Showcase: Start Strong, Shine Bright,’ a platform for DePIN ideas, featuring feedback from VCs and industry leaders including KuCoin Venture, Rocktree Capital, V3V Ventures, MT Capital, and U2U Network.

Roadmap

The U2U Network has an ambitious roadmap ahead, focusing on several strategic priorities:

  • Completion of the Client Application Hub: Set for release December 2024.
  • Incubating Additional DePIN Projects: U2U will incubate additional DePIN projects from diverse regions, providing support, including bootstrapping, marketing, and funding.
  • Scaling with SDK Launch in January: U2U is set to launch its SDK early next year, which will play a critical role in driving adoption and fostering ecosystem growth.
  • U2U Phone Hardware Distribution: Hardware sales will be an important revenue stream for the coming year, with pre-orders for the U2U Phone scheduled for December. By the end of 2025, U2U aims to achieve sales of 200,000 phones. This initiative is supported by JDI Ventures, which has delivered over 500,000 DePIN hardware units for projects like Helium and DIMO.

With these strategic initiatives, U2U Network is committed to accelerating the growth of the DePIN ecosystem and solidifying its position as a leading infrastructure provider.

Closing Summary

U2U Network has attempted to distinguish itself in the Layer-1 blockchain landscape through its subnet technology designed specifically for DePIN. This architecture provides the scalability, customization, and security necessary to manage high transaction volumes and support diverse DePIN applications. With a strong leadership team and solid financial support, U2U has built a credible foundation for continued growth.

Looking ahead, U2U’s roadmap includes the launch of a Client Application Hub, incubation of new DePIN projects, SDK releases, and hardware distribution initiatives. These efforts are aimed at expanding the network and solidifying its role in the decentralized infrastructure space.

U2U Network’s focused approach and technological capabilities position it as a key player in the DePIN sector. Stakeholders, developers, and industry participants are encouraged to explore the network’s offerings to advance decentralized infrastructure and innovation.

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