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Union Protocol
Union Protocol
Union Protocol is a Layer 1 blockchain and decentralized infrastructure layer designed for general-purpose, trustless interoperability between different blockchain networks. The protocol facilitates secure cross-chain communication, including general message passing, asset transfers, and NFT interoperability. It operates as a settlement and liquidity layer, with a particular focus on the Bitcoin DeFi (BTCfi) ecosystem, using Zero-Knowledge (ZK) proofs to ensure security and efficiency. [1] [2]
Overview
Union Protocol is being developed by Union Labs to function as a foundational infrastructure layer that enables chain abstraction, allowing applications to operate across various execution environments such as EVM, SVM, and other alternative virtual machines. [3] The project's core mission is to provide secure, high-speed communication between disparate blockchain ecosystems without relying on trusted third parties. It achieves this through a model of "consensus verification," where the protocol directly verifies the consensus of connected chains. [3] [2]
The protocol launched in April 2023 and has since positioned itself as a key player in the interoperability sector, particularly within the growing BTCfi space. [4] Its architecture combines a Delegated Proof of Stake (DPoS) consensus mechanism with advanced cryptographic methods, including ZK proofs and Boneh-Lynn-Shacham (BLS) signatures, to extend the functionality of the Inter-Blockchain Communication (IBC) protocol to a wider range of networks. The native token of the protocol is U, which is used for paying gas fees, securing the network through staking, and participating in cross-chain governance. [4]
History
Union Protocol was launched in April 2023 by a founding team of six engineers who had previously worked together at Composable Finance. The key founders include Karel, who serves as CEO; Cor, the Chief Technology Officer (CTO); and Hussein, who is the Principal Engineer. [4] This founding team had prior experience as core contributors to CosmWasm and were responsible for implementing the Inter-Blockchain Communication (IBC) protocol within the DotSama (Polkadot and Kusama) ecosystem, creating the first trustless bridge between the two networks. The project has raised a total of $16 million in funding. Since its inception, the team has expanded to include senior members from other prominent crypto-native organizations, including Consensys, TokenSoft, and Zilliqa. [4]
The project began a phased rollout of its testnet in June 2024. A major technical milestone was achieved when Union conducted a Groth16 Trusted Setup Ceremony, a cryptographic event required to generate parameters for its ZK-proof system. The ceremony involved 5,866 verified contributions that processed 1.7 terabytes of data, which was reported as the largest of its kind. [4]
A limited version of the mainnet was launched in April 2025 with an initial focus on expanding interoperability within the Bitcoin DeFi ecosystem. By August 2025, the ninth and final phase of the testnet had concluded, having processed over 300 million transactions. The project's official X (formerly Twitter) account was created in August 2023 and serves as a primary channel for announcements. On November 17, 2025, the team announced a generalized solution for private transfers, designed to protect user privacy for both standard and cross-chain transactions. [4] [1]
Technology
Union Protocol's technology is built on a framework designed to provide secure, scalable, and high-performance interoperability. It operates as a Layer 1 blockchain that uses a Delegated Proof of Stake (DPoS) consensus mechanism to secure its network. [1] [4]
Core Architecture
The protocol's architecture is centered on three main pillars: interoperability, high-speed messaging, and consensus verification. [3] It is described as the "first subsecond messaging protocol," aiming to enable real-time state transfers and application-specific intents between chains. Its interoperability layer acts as a form of "chain abstraction," allowing developers to build applications that are not confined to a single blockchain ecosystem. [3]
The security model is based on consensus verification, which distinguishes it from many other bridges that rely on multi-signature schemes, oracles, or other trusted intermediaries. By directly verifying the consensus states of connected blockchains, Union aims to ensure that cross-chain communications are validated with the same level of security as the chains themselves. [2]
Zero-Knowledge Integration
Zero-Knowledge (ZK) cryptography is a cornerstone of Union's technology and long-term strategy, which the project refers to as "the endgame." [3] The protocol uses a combination of ZK proofs and Boneh-Lynn-Shacham (BLS) signatures to securely and efficiently verify consensus states from other blockchains. This cryptographic foundation enables Union to extend the security and trust-minimization properties of the Inter-Blockchain Communication (IBC) protocol to networks that do not natively support it, such as those in the Ethereum and Bitcoin ecosystems. [2]
The project's long-term ZK vision includes concepts such as "Proof Singularity" (a unified system for ZK proofs), "Unlimited Connections" for interoperability, and "Real-time" communication. [3]
Key Features and Products
Union provides several features and products that leverage its underlying technology:
- Auro BTC (auBTC): A native, cross-chain yield-generating product designed specifically for the Bitcoin DeFi (BTCfi) space. It allows users to earn yield on their Bitcoin in a decentralized manner. [4]
- Private Transfers: Announced in November 2025, this feature provides a generalized solution for private transactions. It is designed to maintain user privacy during both standard on-chain transfers and more complex cross-chain bridge transfers. [1]
- Bitcoin Supercharged Network (BSN): The protocol has positioned itself as a network to enhance the capabilities of Bitcoin, enabling more advanced DeFi applications and use cases. [4]
U Token
The U token is the native utility and governance cryptocurrency of the Union Protocol. It is a multi-chain asset, with representations as an ERC-20 token on Ethereum and as a BEP-20 token on the BNB Smart Chain. [4] [2]
Tokenomics
-
Ticker: U
-
Max Supply: 10,000,000,000 U
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Total Supply: 10,000,000,000 U
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Circulating Supply: As of November 19, 2025, the circulating supply was 1,919,050,000 U.
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Inflation Model: The U token launched with an initial annual inflation rate of 6%. This rate is programmed to decrease by 10% each year until it stabilizes at a long-term issuance rate of 2%.
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Contract Addresses:
- Ethereum (ERC-20):
0xba5eD44733953d79717F6269357C77718C8Ba5ed - BNB Smart Chain (BEP-20):
0xba5eD44733953d79717F6269357C77718C8Ba5ed
- Ethereum (ERC-20):
All tokenomic data is based on information from market aggregators. [4] [2]
Utility
The U token has three primary functions within the Union ecosystem:
- Gas and Fees: It is used as the native currency to pay for transaction fees on the network.
- Network Security: The token is staked by users as part of the Delegated Proof of Stake (DPoS) consensus mechanism to help secure the network and validate transactions.
- Governance: Token holders are granted the ability to participate in cross-chain governance decisions, influencing the future development and parameters of the protocol. [4]
Market Data
As of November 19, 2025, the U token was ranked #1174 on CoinMarketCap. It had a market capitalization of approximately 7.89 million. The token's all-time high was 0.003817, recorded on November 18, 2025. The U token is available for trading on centralized exchanges such as KuCoin, Gate.io, Bybit, Kraken, and MEXC, as well as on decentralized exchanges like PancakeSwap v3 on the BNB Smart Chain. [4] [2]
Ecosystem and Partnerships
Union Protocol has focused on building a robust ecosystem through strategic partnerships and developer-focused initiatives, with a strong emphasis on the Bitcoin DeFi sector. [4]
Partnerships and Integrations
To expand interoperability within the BTCfi space, Union has established partnerships with several projects, including Babylon, BOB, Corn, Lombard, Bedrock, and Solv. [4] In addition to its BTCfi focus, the protocol has highlighted integrations with a range of other prominent blockchain ecosystems, including Arbitrum, Berachain, Movement, Polygon, Scroll, Secret Network, Stargaze, and Stride. [3] The project is also recognized in the Binance Alpha Spotlight category, indicating attention from major industry players. [2]
On November 19, 2025, representatives from Gauntlet, a risk management platform, and DigiFT, a platform for real-world asset tokenization, were scheduled as guests on "The Union Hall Cast," a live stream hosted by the CEO, indicating active engagement with other projects in the Web3 space. [1]
Ecosystem Initiatives
Union supports its ecosystem growth through several programs:
- Developer Fellowship: A program designed to support developers who are building applications and tools on the Union network.
- Incubator Program: In partnership with Cracked Labs, Union launched a 50-team incubator to foster the development of new projects on its platform.
- Grants Program: The project has awarded initial grant funding to cornerstone projects within its ecosystem, with a focus on areas like DeFi and privacy.
- Community NFTs: To cultivate its global community, Union has launched two NFT collections, named Wandering Whale Sharks and ZK Goblin Mode.
These initiatives are part of the protocol's strategy to attract developers and foster a vibrant community of users and builders. [4]
Team
The Union Protocol is led by its co-founder and CEO, Karel, who also hosts the project's live-streamed show, "The Union Hall Cast." [1] Other co-founders from the original team of six engineers include Cor (CTO) and Hussein (Principal Engineer). The founding team's collective experience includes significant contributions to the Cosmos ecosystem through their work on CosmWasm and the creation of an IBC bridge connecting the Polkadot and Kusama networks. The team has since expanded by hiring senior talent from established organizations in the blockchain industry such as Consensys, TokenSoft, and Zilliqa. Sarah K.C., a member of the team, represented Union at the EF Devcon conference in Buenos Aires in November 2025. [4] [1]
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