River Protocol, an on-chain encrypted messaging protocol, has recently made a significant move by acquiring Llama, a smart contracts platform for decentralized governance that is backed by Founders Fund. This acquisition is expected to enhance River’s governance capabilities throughout its ecosystem by incorporating Llama’s open-source smart contracts technology directly into its platforms.
With the integration of Llama, River stakeholders such as node operators and space owners will now have access to a range of tools that will strengthen governance mechanisms. For example, node operators and space owners will be able to propose protocol changes and participate in secure and transparent voting processes.
The acquisition is seen as a step towards empowering communities to establish their own fully on-chain DAO with a treasury system. Through this framework, members can collaborate on decisions regarding fund allocation and community governance.
River, which was launched in March 2024, aims to revolutionize the development of messaging apps. The protocol operates as a layer-2 blockchain and is compatible with the Ethereum Virtual Machine. With River smart contracts on Base, space creators can manage pricing and access controls.
On the other hand, Llama provides protocols with a governance and access control platform that can be utilized for various governance objectives, including smart contract operations, treasury management, protocol parameters, and emergency functions. Llama had previously raised $6 million in a seed round led by venture capital firms Founders Fund and Electric Capital.
River is entering a messaging app market valued at over $200 billion, with plans to differentiate itself through features such as private, ownable, and monetizable group chats. While established platforms like WhatsApp, Facebook Messenger, Telegram, WeChat, and Discord currently dominate the market, experts believe that decentralized solutions represent the future of messaging apps.