What is Towns?

Towns is a decentralized communication protocol that enables developers and communities to build, own, and monetize real-time messaging "Spaces" using an EVM-compatible Layer-2 chain and off-chain stream nodes. The protocol supports on-chain subscriptions, end-to-end encryption, and modular logic that allows creators to define custom access, membership, and governance rules for their Spaces.

What is TOWNS?

The native token of the protocol is TOWNS, which operates on the Ethereum blockchain and underpins the Towns protocol's governance, staking, and economic activity. It is used to secure the network through staking, enable governance over protocol evolution, and support ecosystem functions such as memberships and rewards. Holders can stake or delegate TOWNS to participate in network operations and share in incentives tied to the growth and usage of Spaces. The token has a total supply of 10.12 billion TOWNS, with approximately 2.1 billion currently in circulation at the time of this publication.

Risk Statement

Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset. 

No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform. 

Wealthsimple has performed an assessment of whether TOWNS can be supported by Wealthsimple's platform, including whether TOWNS is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

We evaluated TOWNS based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of TOWNS, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created TOWNS;
• The supply, demand, maturity, utility and liquidity of TOWNS;
• Material technical risks associated with TOWNS, including any code defects, security breaches and other threats concerning TOWNS and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
• Legal and regulatory risks associated with TOWNS, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of TOWNS; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdiction regarding whether TOWNS, or generally about whether the type of crypto asset, is a security and/or a derivative.

Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple's original assessment of those assets, including Wealthsimple's assessment of the application of securities and derivatives laws. Any significant changes relating to TOWNS may result in changes to this Crypto Asset Statement and/or Wealthsimple's ability to support TOWNS.

Like all other crypto assets, there are some general risks to investing in TOWNS. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading TOWNS. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision). 

The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Last updated: November 17, 2025