# Circle Layer > Circle Layer is a high-performance, EVM-compatible Layer 1 blockchain using a Delegated Proof of Stake (DPoS) consensus. It aims to enhance dApp performance wit... - Canonical URL: https://iq.wiki/wiki/circle-layer - Categories: Organizations - Tags: Layer 1, AI Token, Developer, Infrastructure - Created: 2025-08-05T16:27:47.708Z - Last updated: 2025-08-11T19:33:32.754Z - Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki) --- **Circle Layer** is a high-performance [Layer 1](https://iq.wiki/wiki/layer-1) [blockchain](https://iq.wiki/wiki/blockchain) that is compatible with the [Ethereum Virtual Machine (EVM)](https://iq.wiki/wiki/ethereum-virtual-machine-evm). It utilizes a [Delegated Proof of Stake (DPoS)](https://iq.wiki/wiki/delegated-proof-of-stake-dpos) consensus mechanism and aims to provide high transaction throughput and an integrated AI security layer for [decentralized applications (dApps)](https://iq.wiki/wiki/decentralized-application). [\[1\]](#cite-id-ST8mbaWjgx) [\[2\]](#cite-id-BUBa3Drf18) ## Overview Circle Layer is being developed to address performance limitations and economic challenges for developers in the [blockchain](https://iq.wiki/wiki/blockchain) industry. The project identifies that the operational efficiency of [dApps](https://iq.wiki/wiki/decentralized-application), especially in high-demand sectors such as gaming and the [metaverse](https://iq.wiki/wiki/metaverse), is often constrained by the transaction speeds of underlying [blockchain](https://iq.wiki/wiki/blockchain) networks. To counter this, Circle Layer employs a [DPoS](https://iq.wiki/wiki/delegated-proof-of-stake-dpos) consensus model to increase transaction throughput. [\[2\]](#cite-id-BUBa3Drf18) A core component of the project's design is its economic model, which aims to create a more sustainable financial ecosystem for developers. Unlike traditional models where transaction fees are primarily directed to miners or network stakers, Circle Layer's model redistributes a portion of these fees to the developers who deploy the [smart contracts](https://iq.wiki/wiki/smart-contract). This is intended to generate a direct revenue stream for [dApp](https://iq.wiki/wiki/decentralized-application) creators based on their application's usage. The platform is built to be fully compatible with the [EVM](https://iq.wiki/wiki/ethereum-virtual-machine-evm), allowing developers to migrate existing [Ethereum](https://iq.wiki/wiki/ethereum)-based applications and use familiar tools and programming languages like [Solidity](https://iq.wiki/wiki/solidity). [\[1\]](#cite-id-ST8mbaWjgx) [\[2\]](#cite-id-BUBa3Drf18) ## History The development and launch of Circle Layer are structured in a multi-phase roadmap. The initial phase focused on the launch of an [ERC-20](https://iq.wiki/wiki/erc-20) token on the [Ethereum](https://iq.wiki/wiki/ethereum) network to build a community, alongside the development of the core testnet infrastructure. The project's native token, CLAYER, was officially deployed on the [Ethereum](https://iq.wiki/wiki/ethereum) [blockchain](https://iq.wiki/wiki/blockchain), with the contract verified on July 19, 2025. Trading for the token commenced on July 22, 2025. [\[3\]](#cite-id-fajvRwKG0B) [\[2\]](#cite-id-BUBa3Drf18) ## Road Map * **Phase 1: Token Launch & Core Infrastructure:** Included the ERC-20 token launch, development of a testnet capable of approximately 5,000 TPS, and the implementation of the DPoS consensus mechanism. [\[9\]](#cite-id-RLpmbP9CNT) * **Phase 2: Ecosystem Expansion:** Plans include the development of a native bridge and a decentralized exchange (DEX), iOS and Android wallets, and the integration of an "Agentic AI" security layer. This phase also focuses on optimizing the network to reach a target of 50,000 TPS. [\[10\]](#cite-id-aPUP6IXE8E) * **Phase 3: Mainnet Launch:** Involves the genesis launch with an initial set of 21 validators, migration of the CLAYER token to the native chain, and the activation of DeFi infrastructure. [\[11\]](#cite-id-nIOc4J2DH9) * **Phase 4: Global Expansion:** Sets long-term goals for user adoption and further performance enhancements, targeting over 100,000 TPS. [\[12\]](#cite-id-9AukDrg4CC) ## Features * **EVM Compatibility:** The platform is fully compatible with the [EVM](https://iq.wiki/wiki/ethereum-virtual-machine-evm) at the bytecode level, enabling developers to deploy smart contracts from [Ethereum](https://iq.wiki/wiki/ethereum) or other [EVM](https://iq.wiki/wiki/ethereum-virtual-machine-evm)-compatible chains without code modifications. It supports standard development tools like [Solidity](https://iq.wiki/wiki/solidity), Remix, Hardhat, and Truffle, as well as libraries such as Web3.js and Ethers.js. * **Consensus Mechanism**: Delegated Proof of Stake (DPoS) with a minimum of 5 active validators and a maximum of 21 validators. * **High Performance:** The architecture targets high throughput and low latency, with testnet metrics showing 3-second block times and 1-3 second finality. * **Developer Revenue Share:** A portion of network transaction fees is allocated to the deployers of smart contracts, providing a direct economic incentive for developers. * **Energy Efficiency:** The use of a DPoS consensus mechanism results in significantly lower energy consumption compared to Proof-of-Work blockchains. * **Cross-Chain Support:** The roadmap includes plans for a native asset bridge to allow for the mapping of assets from other blockchains, such as ETH and BNB. * **Meta-Transactions:** The platform incorporates a meta-transaction function, which can help reduce gas fee costs for users and developers. [\[2\]](#cite-id-BUBa3Drf18) [\[8\]](#cite-id-RkMdIPkdtP) ## Use Cases * **Decentralized Exchanges (DEXs):** Enables high-frequency trading, low-latency order matching, cost-efficient transactions, and secure smart contract execution. * **Lending Platforms:** Facilitates real-time interest calculations, automated liquidations, collateral tracking, and integrated risk assessment. * **Yield Farming:** Supports efficient reward distribution, automated compounding, multi-pool investment strategies, and risk management tools. * **Stablecoins:** Provides mechanisms for rapid minting and burning, price stability maintenance, collateral oversight, and cross-chain operability. [\[7\]](#cite-id-yTpJX2APxI) ## Ecosystem The Circle Layer Foundation works to foster growth through developer support and community initiatives. The project provides comprehensive documentation, grant programs, and developer support channels. To further encourage development, [Circle](https://iq.wiki/wiki/circle) Layer hosts hackathons and an accelerator program designed to provide mentorship and resources for new startups building on the platform. The ecosystem supports a wide range of standard [blockchain](https://iq.wiki/wiki/blockchain) development tools, including [MetaMask](https://iq.wiki/wiki/metamask), WalletConnect, [The Graph](https://iq.wiki/wiki/the-graph), and [OpenZeppelin](https://iq.wiki/wiki/openzeppelin). The project maintains an active community on platforms like Telegram and X (formerly Twitter). [\[1\]](#cite-id-ST8mbaWjgx) [\[6\]](#cite-id-AIGoRPzjHy) ## Tokenomics ### Circle Layer Token ($CLAYER) The $CLAYER token was initially launched as an [ERC-20](https://iq.wiki/wiki/erc-20) token on the [Ethereum](https://iq.wiki/wiki/ethereum) network. [\[3\]](#cite-id-fajvRwKG0B) ### Allocation * **Initial Liquidity (50% / 500,000,000 CLAYER):** Allocated to support market liquidity and facilitate price discovery. * **Treasury (20% / 200,000,000 CLAYER):** Designated for governance, grants, and strategic partnerships. * **Staking and Validator Incentives (15% / 150,000,000 CLAYER):** Reserved for network security and validator rewards. * **Marketing and Operations (10% / 100,000,000 CLAYER):** Used for marketing campaigns, growth initiatives, and operational expenses. * **Research and Development (5% / 50,000,000 CLAYER):** Directed toward innovation and protocol enhancements. [\[13\]](#cite-id-OYqG4wmEuF) ### Token Utilities * **Gas Fees:** It is used to pay for transaction fees on the network. * **Staking:** Validators must stake $CLAYER to participate in the consensus process and secure the network. The minimum stake for a mainnet validator is 100,000 $CLAYER. * **Reward Distribution:** [Gas](https://iq.wiki/wiki/gas) fees collected from network transactions are distributed to validators as rewards, proportional to their stake. * **Developer Revenue:** A portion of transaction fees is redistributed to the developers of the [smart contracts](https://iq.wiki/wiki/smart-contract) that facilitate the transactions. * **Burn Mechanism:** The economic model includes a systematic [token burn](https://iq.wiki/wiki/token-burn) mechanism to create deflationary pressure on the token supply. [\[2\]](#cite-id-BUBa3Drf18)