San Francisco, August 30 – Yellow Network, focused on building a universal infrastructure layer for Web3, today announced the conclusion of its platform token $YELLOW sale on the Republic platform. This sale was aimed at qualified investors, ultimately raising over $1 million, with oversubscription observed. Notably, this is one of the first Web3 infrastructure tokens to complete its sale under the U.S. Securities Act Regulation D, setting a benchmark for institutional-level tokenization practices under the U.S. compliance framework.
As a key supporter of the project, Ripple co-founder Chris Larsen not only participated in early investments but also provided crucial guidance on technical paths and compliance strategies for Yellow Network. According to the Yellow Network technical team, its core competitiveness lies in building a state channel-based cross-chain real-time settlement system, combined with the modular Yellow SDK, creating a complete backend infrastructure solution. Unlike traditional exchanges, Yellow Network does not directly operate trading businesses but empowers brokers, application developers, and institutional clients to efficiently connect to the global liquidity network and achieve secure, low-latency asset trading and settlement across different blockchains.
"This achievement confirms that compliance and innovation can indeed advance in parallel," said Alexis Sirkia, head of Yellow Network, in an interview. "The significance of raising over $1 million through Reg D goes far beyond the funding aspect—it signifies that the U.S. market is ready to embrace regulated digital infrastructure, allowing institutions and creators to participate confidently in the Web3 ecosystem within a compliant framework." He revealed that the sale under Reg D strictly adhered to the 506 (c) clause, open only to certified qualified investors, and followed standard processes aligned with traditional financial markets for information disclosure, anti-money laundering (AML), and customer due diligence (KYC).
$YELLOW tokens, as the core carrier supporting the Yellow ecosystem, are functionally designed to deeply integrate into the entire process of infrastructure operation.
Access and utilities: Developers must hold a certain amount of $YELLOW tokens to unlock advanced modules in the SDK (such as cross-chain bridging tools, real-time settlement plugins, multi-chain account management systems, etc.) and receive technical support services.
Fee subsidy mechanism: Developers can subsidize transaction fees for end users by locking $YELLOW tokens, thereby lowering the user threshold—for example, a gaming application can reduce players' Gas fees by over 60% when trading on-chain items through token locking, achieving a near-Web2 smooth experience.
Community governance rights: Token holders can vote on key issues related to ecological development, including priority for technology upgrades (such as whether to support a new public chain), fee distribution ratios, and adjustments to incentive pool sizes.
Ecological incentive distribution: Approximately 20% of the total $YELLOW tokens will be used to incentivize ecological participants, including builders developing applications based on SDK (released in phases according to user volume and transaction scale), institutions providing liquidity for cross-chain pools (rewards allocated in real-time based on contribution), and validating nodes maintaining the security of state channels (earning rewards through node staking and performance assessments).
The conclusion of this sale is a reflection of Yellow Network's recent development momentum. At the recently concluded ETHGlobal developer conference in Prague, the number of applications developed based on Yellow SDK significantly increased, with over 20 new projects added in just two days, covering various fields such as on-chain games (e.g., competitive games (Chain Brawl) supporting real-time item cross-chain trading), decentralized finance (e.g., cross-chain liquidity aggregation protocol FlowSwap), enterprise payment solutions, and more. Among them, the game developer team ChainPlay revealed that, with the help of Yellow's state channel technology, the confirmation time for in-game asset transactions has been reduced from the traditional public chain's 10-30 seconds to under 1 second, and transaction fees have been reduced by 90%.
On the technical front, Yellow Network's Canary Testnet was officially launched last month, and it currently supports cross-chain settlement testing for three public chains: Ethereum, Polygon, and Avalanche. The number of nodes participating in testing exceeds 50, with over 100,000 test transactions processed, achieving a zero-failure operation record for 30 days. According to official plans, the mainnet is expected to launch in the first quarter of 2025, at which point support for two additional public chains, Solana and BNB Chain, will be added, along with the opening of institutional-level API interfaces.
Yellow Network's positioning is not limited to technical infrastructure but is also committed to becoming a 'bridge' connecting traditional finance and the decentralized world. Currently, it has reached a cooperation intention with two licensed payment institutions in the United States, planning to achieve compliant exchange channels between fiat currency and digital assets through SDK integration; at the same time, it is discussing technical pilots for cross-border payment scenarios with a well-known bank in Europe, using state channel technology to reduce the cost and time of traditional cross-border transfers (currently, the average cost of traditional cross-border transfers is about 3%, with a delivery time of 1-3 days, while in the testing environment, the cost of the Yellow solution can be reduced to below 0.5%, with delivery time shortened to minutes).
About Yellow Network
Yellow Network is a technology company focused on Web3 infrastructure, with core products including a state channel-based cross-chain real-time settlement system and modular SDK. Through advanced off-chain computing combined with on-chain verification technology, its solutions provide developers with scalable, low-latency blockchain functionality integration capabilities while achieving a balance in security and user experience. Yellow supports cross-chain standards such as ERC-7824 and serves various fields including DeFi, gaming, and enterprise applications, aiming to eliminate the technical friction of traditional blockchain development, accelerate the adoption of decentralized technology, and lay the groundwork for attracting the next billion users.#Web3 #yellow