Aztec Network just wrapped up its public AZTEC token sale, raising approximately $61.3 million from more than 16,700 participants and collecting 19,476 Ethereum in total.
Unlike traditional token launches dominated by insiders and institutions, Aztec’s approach prioritized its community, signaling a shift toward fair-access, decentralized token distribution.
A Community-First Launch
Running from Dec. 2 to Dec. 6, the sale used a Continuous Clearing Auction (CCA) mechanism built with Uniswap Labs. Half of the funds raised came from Aztec’s existing community, including testnet operators and early users of its now-retired Aztec Connect product, rather than large institutional allocations.
Aztec deliberately avoided the common airdrop model for layer-2 launches, instead opting for a fair-access auction that started at a floor price corresponding to a $350 million fully diluted valuation—a 75% discount compared to prior equity rounds.
To prevent whale domination, the sale implemented per-user caps of 240 Ethereum, and the auction structure eliminated the front-running and timing games that often plague token launches.
Praise from the Crypto Community
Uniswap founder Hayden Adams highlighted the sale’s success, noting there was no sniping, bundling, or timing manipulation. Participants enjoyed slow, fair price discovery, with the final price closing 59% above the floor, giving early bidders a strategic advantage.
Following the token generation event, a Uniswap v4 liquidity pool containing 273 million AZTEC tokens (~2.6% of total supply) will go live to provide immediate secondary market liquidity.
Governance and Staking
Tokens purchased in the sale will remain non-transferable until at least Feb. 11, 2026. After that, holders can initiate a governance vote to unlock transferability. If no vote passes, tokens will unlock linearly through November 2026, ensuring the community maintains control over timing.
Validators who want to stake must commit 200,000 AZTEC tokens, and nearly 556 million tokens are already staked according to project data.
Funding and Roadmap
Aztec previously raised $100 million in Series B funding in December 2022, backed by a16z, Paradigm, and Ethereum co-founder Vitalik Buterin, bringing total funding to over $119 million.
The network’s Ignition Chain, a privacy-focused Ethereum layer-2, launched in mid-November and is described as the first fully decentralized layer-2 on Ethereum. Currently, 165 nodes power the network, producing blocks but not yet processing user transactions—a deliberate staging approach for real economic stress-testing ahead of full functionality in early 2026.
The Takeaway
Aztec’s token sale represents a new standard for community-first, fair-access launches. With strong community participation, robust staking, and a carefully staged network rollout, Aztec is positioning itself as a leader in privacy-focused Ethereum layer-2 solutions.
