River, an on-chain encrypted messaging protocol, has acquired Llama, a Founders Fund-backed smart contract platform for decentralized governance.
The acquisition will help River strengthen its governance across its ecosystem, with the protocol integrating Llama’s open-source smart contract technology directly into its various platforms.
According to a blog post describing the transaction, using Llama will give River stakeholders, including node operators and space owners, access to built-in tools that will strengthen governance mechanisms.
For example, node administrators or space owners can now submit proposals regarding protocol changes, with secure and transparent voting.
“In short, this acquisition crystallizes the ability for any community to automatically deploy their own, fully on-chain DAO with a treasury system. Through this framework, members can discuss and decide how funds are allocated and how to govern their own communities,” River wrote in the blog post.
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River launched in March 2024 and introduced a protocol that aimed to transform messaging app development. The smart contract platform, which works as a layer 2 blockchain, offers compatibility with the Ethereum Virtual Machine.
River Smart Contracts on Base allows the protocol’s space creators to handle functions such as pricing and port access.
Llama, meanwhile, allows protocols to use its governance and access control platform for various governance purposes. These include managing smart contract operations, treasury, protocol parameters and emergency functions.
Llama raised $6 million in a seed round led by venture capital firms Founders Fund and Electric Capital in November 2023.
River is trying to penetrate a messaging app market currently valued at more than $200 billion. According to Ben Rubin, the developer of the Towns platform on River, there is huge potential for “private, owned and monetized group chats.”
Today, WhatsApp, Facebook Messenger, Telegram, WeChat and Discord dominate the messaging app market. Experts say decentralized is the future.
Read more: Privacy expert criticizes WhatsApp and Telegram and calls decentralized messaging the future