Research Report｜In-Depth Analysis and Market Cap of Common Protocol (COMMON)

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Bitget2025/10/27 08:10

By:Bitget

I. Project Overview

Core Positioning

Common Protocol (COMMON), developed by Commonwealth Labs, is an AI-native platform focused on building a "coordination layer" connecting communities, contributors, and AI agents. The platform tokenizes various aspects of online interaction—communities, projects, threads, and discussions—creating an AI-driven workspace serving 1.7 million users across over 40,000 communities.

Key Features

The platform offers a comprehensive Web3 community toolkit:

Token issuance & tokenization: Users can create and issue custom tokens for projects or discussion threads, with built-in fair distribution mechanisms and AI-assisted pricing.

Community building: Supports token-gated spaces for exclusive discussions, forums, and treasury management, with on-chain voting via Snapshot integration.

Governance & coordination: On-chain DAO management including proposal creation, voting, and execution, enhanced by AI agents for automated decision-making.

Rewards & tasks: Gamified mechanisms allow users to earn tokens through participation, content creation, or AI-coordinated tasks.

AI integration: AI-native interactions enable automated community management, sentiment analysis, and yield optimization.

The platform primarily operates on Base (Ethereum L2) for low-cost, scalable interactions, with plans for future cross-chain support.

II. Project Highlights

Technological Advantages

AI-Web3 deep integration: The first protocol to natively integrate AI agents into a community tokenization platform, enabling AI-driven governance, reward distribution, and on-chain decision-making.

Comprehensive tokenization: Tokenization extends beyond communities to threads, projects, and tasks, forming a micro-economy.

Unified coordination layer: Addresses Web3 community tool fragmentation by unifying token issuance, governance, and AI decision-making in a single protocol.

Market Positioning Advantages

First-mover advantage: 1.7 million users and 40,000+ communities provide a leading position in the AI-community tokenization space.

Complete ecosystem: Offers an end-to-end toolchain from token issuance to governance execution, providing stronger utility compared with purely social token platforms (e.g., Friend.tech) or AI platforms.

Infrastructure value: As a coordination infrastructure, the platform has potential 10–20x growth as Web3-AI integration trends expand.

III. Market Valuation Expectations

Valuation Framework

Current stage: Pre-TGE, no live market price.

Initial circulating supply: 2.33 billion COMMON (23.3% of genesis supply).

Potential valuation range: Based on similar projects and VC evaluations, initial market cap expected between $500M–$1B.

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Value Drivers

User growth: 1.7M active users, AI features may increase engagement by 20–30%.

Utility demand: Core features such as governance voting, token-gated access, and AI agent deployment drive mandatory use of COMMON.

Inflation mechanism: Initial 5–10% annual inflation tied to protocol usage ensures token demand growth.

IV. Token Economics

Token Supply Mechanism

Genesis supply: 10 billion COMMON

Max supply: 12.41 billion COMMON (7-year inflation cap)

Initial circulation: 2.33 billion COMMON (at TGE)

Inflation: Starting at 5% annually, adjustable based on protocol usage, minimum 2%

Token Allocation

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Token Utility

Governance rights: Holders can vote on protocol upgrades, fee structures, and AI agent parameters.

Access gating: Token-gated communities, advanced AI tools, and custom token issuance.

Reward incentives: Task rewards, staking yields, and AI coordination bounties.

Fee payments: For thread tokenization, DAO tools, or AI agent deployment.

Liquidity provision: DEX/AMM liquidity and cross-community coordination.

Inflation/Deflation Mechanisms

Inflation: Moderate inflation (5–10%) tied to active user count and tokenized threads.

Deflation: 0.5% fee burn from governance actions and reward recycling via AI optimization.

V. Team & Funding

Core Team

Founders:

Dillon Chen (Founder & CEO): Oversees strategy and operations, leading the company since 2018 from DAO tools to AI-integrated platform.

Drew Stone (Co-founder): Technical and privacy expert, formerly founder of Webb Privacy Lab, focusing on cross-chain zero-knowledge blockchain applications.

Raymond Zhong (Co-founder): Early product design and engineering.

Key members:

0xmullet (Growth Lead): User acquisition and ecosystem expansion.

Zak Hap (Ex-Product Lead, now at m1c2): Founder of Liminal.Media and Odefi, Columbia University alumnus.

Jake N. (Lead Engineer): Ex-Bloomberg Terminal core engineer, Carnegie Mellon alumnus.

Funding History

Total raised: $25.2M

Notable angel investors: Balaji Srinivasan (Ex-Coinbase CTO), Ryan Selkis (Messari Founder), Stani Kulechov (Aave Founder), etc.

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Strategic Partnerships

1、Marlin Protocol – decentralized decision-making and high-performance blockchain middleware.

2、Snapshot – on-chain governance voting integration.

3、Exchange collaborations – listing partnerships with Binance Alpha, Bitget, Bybit, and other major exchanges.

VI. Community Sentiment & Market Acceptance

Overall Sentiment

Pre-release discussions indicate predominantly positive sentiment, with strong interest in token utility for community coordination and AI-driven workflows. COMMON is positioned as scalable governance and incentive fuel aligned with Asia-led crypto trends.

Community Feedback Highlights

1、Highly active Turkish community using bull-themed emojis (related to Lamumu NFT collections).

2、Positive reception of product features: Aura actions, Lamumu NFT interactions, and cyclic pricing decision tools.

3、Asian roadshow events in Taipei, Tokyo, Seoul, and Singapore demonstrated AI coordination use cases from grassroots to institutional levels.

Controversies & Concerns

Airdrop fairness: Community members criticized allocation as unfair; early Lamumu NFT minters felt under-allocated, highlighting tension in incentive design.

VII. Potential Risks

Project Fundamental Risks

Technical execution: AI integration complexity, cross-chain expansion, and smart contract vulnerabilities may impact platform stability.

Competition: Established DAO tools (Aragon, DAOstack) and AI platforms may launch similar functionalities.

Narrative dependence: Over-reliance on AI-Web3 hype could affect valuation if market interest declines.

User retention: Sustaining engagement of 1.7M users requires ongoing innovation.

Token Selling Pressure Risks

High initial circulation: 23.3% at TGE may create early supply pressure.

Team & investor unlocks: 15% team allocation and 20% ecosystem fund released over 4–5 years.

Inflation mechanism: 5–10% annual inflation may dilute holders’ equity.

Market Liquidity & Trading Risks

Price discovery volatility: Early-stage listing may experience large price swings.

Insufficient liquidity: Limited early liquidity pools could lead to high slippage.

Market manipulation risk: Large holders may exploit low initial liquidity.

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Risk Mitigation Recommendations

Investment strategy: Consider phased entry to avoid TGE volatility.

Fundamental monitoring: Track user growth, AI adoption, and community activity.

Technical progress monitoring: Follow smart contract audits and cross-chain expansion.

Competitive landscape assessment: Continuously monitor competitor activity and market narratives.

VIII. Official Links

Website: www.common.xyz

X (Twitter): https://x.com/commondotxyz

Disclaimer: This report is AI-generated with human verification for accuracy. It does not constitute investment advice.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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