In June, a violin once owned by Russian Empress Catherine the Great was used as collateral for a $10 million loan from Galaxy, sparking renewed discussion in the community about the RWA (Real World Assets) sector.

The RWA sector, which tokenizes real-world assets to break traditional financial boundaries, is considered one of the largest growth markets in the crypto world. Both leading Web3 entities, such as Binance, and major Web2 financial giants like BlackRock and Franklin Templeton, have shown strong interest in the RWA sector. With the approval of spot ETFs for Bitcoin and Ethereum, RWA-related protocols such as ONDO and MANTRA have also seen significant gains.

According to a forecast by Boston Consulting Group, the tokenization market for global financial assets is expected to reach $16 trillion by 2030, compared to the current $6 billion market value of the RWA sector. The RWA sector still has substantial growth potential, but faces challenges including regulatory uncertainty, technical difficulties, and liquidity issues. The modular RWA L2 network Plume Network, designed to simplify deployment and lower entry barriers for traditional financial participants, has attracted widespread attention.

Recently, with the launch of its testnet, Plume Network introduced an incentive program themed “Global Travel” to engage the community. Users can earn points and accumulate future airdrop tokens by exploring different countries (ecosystems), completing travel tasks, and inviting friends.

As the first modular EVM L2 network created specifically for the RWA sector, Plume Network has completed a $10 million seed round led by Haun Ventures, with participation from notable investors such as Galaxy Ventures, Superscrypt, and A Capital. It has also attracted support from angel investors including Eric Chen and Mirza Uddin from Injective, Anthony Ramirez from Wormhole Labs, and Calvin Liu from Eigenlayer.

This article aims to delve into Plume Network, exploring how the project leverages technological innovation and ecosystem development to offer customized, one-stop services for the RWA sector, and provides details on the testnet incentive program, examining the future development opportunities and challenges for Plume Network and the RWA sector.

RWA: High Barriers, Liquidity, and Regulatory Challenges in the Trillion-Dollar Market

The concept of RWA (Real World Assets) has been around for a long time. It refers to Tokens that represent actual assets for transactions on the chain. It is a mapping of real world assets on the chain. Theoretically, any asset in the real world can be tokenized, whether it is real estate, violins, commodities, or intellectual property.

Through blockchain technology, RWA can significantly reduce intermediary links and transaction costs, and improve the efficiency of asset transactions; with the programmability of blockchain, assets on the chain can be easily split and combined. This high degree of flexibility and composability will give birth to more financial innovations; more importantly, the transparency and non-tamperability of the blockchain provide higher transparency and traceability for RWA assets. No matter how the derivatives are packaged, investors can trace their Basic assets increase the trust and security of the market.

In recent years, many Web3 technologies have ushered in breakthrough developments: for example, the jump in public chain performance and the development of cross-chain technology have enabled RWA assets to circulate in multiple ecosystems and be combined and integrated into different scenarios; another example is the Token standard. The continuous evolution is increasingly in line with the on-chain needs of more diverse assets in the real world, and a series of advancements have provided strong support for the development of the RWA track.

However, on the road to growing into a trillion-level market, RWA still faces some challenges:

On the one hand, RWA has a high entry barrier for traditional asset holders and ordinary users: although many people have shown interest in RWA, there are certain technical and cognitive barriers to participating in RWA, and currently Many RWA services charge high fees, which makes many people shy away from RWA.

On the other hand, due to the imperfect price discovery mechanism of most RWAs, the lack of active secondary markets, and the lack of unified trading standards and circulation channels for different types of RWAs, the on-chain liquidity of RWAs has also troubled entrepreneurs and investors.

In addition, the attitudes and rules of regulatory agencies in various countries towards the RWA field have not yet been fully clarified, which has brought uncertainty to the development of RWA. How to innovate while complying with regulations is a major challenge facing the RWA track.

From Lowering Barriers to Unlocking Innovation: Plume Builds One-Stop Customized Services for the RWA Sector

As the first modular EVM L2 network specifically designed for the RWA sector, Plume Network aims to lower barriers to RWA and provide a platform for interacting with and investing in RWA through a robust DeFi ecosystem. This approach seeks to attract new users and enhance on-chain liquidity for RWA assets, building a dynamic and vibrant ecosystem.

Plume Network’s adaptation to the RWA sector begins with foundational architecture modifications:

Firstly, Plume Network is built on Arbitrum Nitro, the same stack that supports Arbitrum One and Arbitrum Nova. This choice ensures high compatibility and consistency with Ethereum, allowing most Ethereum and other EVM-compatible smart contracts to seamlessly migrate and operate on Plume Network, significantly reducing developers’ migration costs and time.

Secondly, Plume Network uses Celestia as the data availability (DA) layer, which reduces gas costs by 99.9%, providing users with a more cost-effective trading environment. Additionally, Plume Network makes fine-tuned modifications to state transition functions based on Arbitrum Nitro and utilizes Ethereum Authentication Services (EAS) for certification, further lowering gas costs.

To address the entry challenges for traditional asset holders and ordinary users, Plume Network aims to be the go-to platform for seamless deployment of RWA projects by asset issuers and efficient market entry for investors through its comprehensive end-to-end integrated technology stack.

For asset issuers, Plume Network offers the RWA Launcher, a comprehensive tokenization application that functions like a LEGO store, breaking down every aspect and module of RWA into individual pieces that users can assemble. This approach helps to lower barriers and unlock innovation in the RWA space.

The RWA Launcher is fully open-source, licensed under MIT, and free to use. Even those without coding knowledge can follow the installation and setup instructions to operate the RWA Launcher. It allows asset issuers to easily complete the entire process—from on-chain identity creation, authentication, capital flows, and asset deployment to asset trading—providing a one-stop service. This not only simplifies the operation process but also significantly reduces technical barriers and costs for users, encouraging broader participation in the RWA ecosystem.

Plume Network supports a wide range of token standards including ERC-20, ERC-721, ERC-1155, and ERC-3643, catering to the diverse needs of real-world assets. This broad support enables various types of assets to be tokenized and traded on the platform, greatly expanding its applicability and flexibility.

Whether it’s tangible assets like aged wine, limited-edition sneakers, or works by pioneering artists, or intangible assets like stocks and carbon credits, asset issuers can find tailored solutions on Plume Network for low-cost, low-barrier on-chain representation of real-world assets.

After lowering entry barriers, a greater challenge is enabling these on-chain real-world assets to truly achieve “value flow” in transactions.

Plume Network has signed cooperation agreements with several ATS (tokenized securities trading platforms compliant with regulations and registered with FINRA) from the EU and North America, including Texture Capital, Openfinance, and Archax. Asset issuers can seamlessly integrate ATS trading systems through APIs, offering investors compliant trading services in both primary and secondary markets. Additionally, Plume Network supports AMMs, NFT RWA Perp DEX, RWA lending, and other DeFi primitives, further expanding the derivative scenarios for RWA assets. Broader trading activities not only provide better liquidity and more diverse participation opportunities for users but also offer developers more space for innovation, making the entire ecosystem more vibrant and diversified.

For compliance issues, Plume Network provides robust compliance tools to help projects build and circulate in a regulated manner.

As an important part of the token standards supported by Plume Network, ERC-3643 better meets regulatory needs. It uses a built-in decentralized identity system called ONCHAINID to ensure that only users meeting specific criteria can hold tokens. Issuers of ERC-3643 tokenized assets can access interfaces to set transfer restrictions, freeze tokens, destroy tokens, and enforce token transfers, which are crucial operations for securities-regulated RWA tokenization.

Additionally, Plume Network offers a range of tools to help users address regulatory challenges, including KYC (Know Your Customer), KYB (Know Your Business), AML (Anti-Money Laundering), account abstraction, on-chain arbitration, and transfer agency functions. These compliance tools help participants meet regulatory requirements across different regions and industries.

The powerful technology stack enables seamless on-chain representation and trading of real-world assets, reflecting the Plume Network team’s deep industry insights and meticulous product development.

According to official information, the core members of the Plume team have extensive experience in traditional finance, the crypto market, and the RWA sector:

Plume CEO Chris Yin is a serial entrepreneur who founded Xpenser in 2012, which was acquired by Coupa a year later. He has since held significant roles at leading companies such as Scale Venture Partners, Rainforest QA, and Coupa Software.

Plume CTO Eugene Shen has worked at Robinhood Crypto and dYdX, contributing significantly to their development efforts.

Plume CBO Teddy Pornprinya joined Coinbase Ventures in 2021 to handle venture capital responsibilities and later moved to Binance as the BD Manager.

The impressive backgrounds of the team members provide Plume with comprehensive support in terms of technical assurance, market experience, and collaborative resources. Even though Plume Network is still in its testnet phase, its ecosystem has already shown impressive performance.

Currently, Plume Network has attracted over 100 projects building on its platform, covering various categories such as collectibles, synthetic assets, luxury goods, real estate, lending protocols, and perpetual DEXs. This diverse ecosystem further demonstrates the broad application potential of both Plume Network and the RWA sector.

Additionally, Plume Network will implement a series of incentive measures to continually drive ecosystem expansion:

For developers, Plume has launched the Plume Aviation Academy program, which provides technical training, resource support, and funding for developers interested in building RWA projects on Plume.

For ordinary users, Plume has previously introduced an ambassador program that rewards users for promoting and participating in community activities. Meanwhile, the Plume Network testnet incentive program is ongoing, allowing users to earn points by participating in testnet activities.

The testnet incentive program is about to launch: Explore the world and earn points, and invite friends to accelerate your points

Plume’s testnet incentive program revolves around the concept of “global travel.” Users can earn Plume points by visiting different countries (ecosystem projects), collecting stamps, completing travel tasks, and inviting friends using referral codes. The program aims to thoroughly test the network’s functionality and performance while encouraging users to explore the Plume ecosystem and experience its diverse products and services through a points-based reward mechanism.

In addition to exploring the ecosystem through the testnet incentive program, Plume’s official social media has announced several methods for earning more points.

Firstly, users can accelerate their points by minting Plume Goon NFTs. In the context of the Plume testnet event, Plume Goon functions as a passport for the Plume ecosystem. Users can use their Plume Goon NFT to travel the world (Plume ecosystem), explore different ecosystem sectors, complete travel tasks, and collect passport stamps. The more stamps users collect, the more points they earn.

Users can log in to the Plume website and link their wallets to check their eligibility for minting Plume Goon NFTs. If not eligible, users can join the Plume community and other partner communities to gain minting access.

Holding a Plume Goon NFT significantly enhances the testnet participation experience, including earning additional Plume points, accelerating points, and opportunities to upgrade to rarer NFTs. Currently, the number of Plume Goon NFTs minted has exceeded 100,000.

Secondly, users can earn more points by inviting friends and upgrading their status. The Plume testnet event is divided into four different boarding groups:

• Diamond Boarding Group
• Platinum Boarding Group
• Gold Boarding Group
• Silver Boarding Group

Users are assigned to different boarding groups based on their contributions, with each group offering varying levels of points acceleration. Users can upgrade their boarding group by inviting friends.

Once a user mints a Plume Goon NFT, they receive a unique registration invitation code. This code can be used to invite more users to participate in the Plume testnet. The more friends a user invites, the higher their boarding group level, and the greater their points rewards.

Additionally, users can earn more points through daily check-ins, following social media accounts, and other activities to improve their rankings on the points leaderboard. Higher rankings will also result in faster points accumulation.

Similar to many projects with upcoming token launches, Plume’s ecosystem incentives are presented in the form of points (Plume Miles). These points will be closely tied to future token airdrops, rewarding early users for their support and contributions. Therefore, for most users, participating in the testnet incentive program is an effective way to accumulate points and build up airdrop potential.

Conclusion

In summary, RWA (Real-World Assets) is emerging as a key bridge between traditional finance and the cryptocurrency world, demonstrating significant development potential and expansive growth opportunities. RWA represents a vast array of assets in the real economy, and its digitalization and application on blockchain are set to bring profound changes to the financial industry.

As the first modular EVM L2 network specifically designed for the RWA sector, Plume is making strides in lowering barriers, enhancing liquidity, and facilitating compliance. These efforts are aimed at providing broader accessibility, liquidity, and innovation for RWA. With the launch of the testnet incentive program and the achievement of several important milestones, Plume is poised for a new phase of rapid project development in the foreseeable future. However, it is important to note that the project is still in the early stages of its testnet phase, and its vision for the RWA sector will need to be evaluated based on its performance post-mainnet launch.

Regardless, as a highly anticipated newcomer in the RWA sector, Plume Network is expected to drive significant transformation from traditional finance to modernization, bringing fresh momentum and development opportunities to the entire industry.

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