Irys functions as a Layer 1 datachain that merges onchain data storage with smart contract execution within one network. While conventional smart contract chains manage financial transactions but lack native tools for large-scale data handling, and traditional datachains provide storage without smart contract integration, Irys addresses both needs. It connects these elements by making data programmable via IrysVM, its native EVM execution layer.

The platform provides adaptable storage choices: users may select term storage (temporary and based on duration) or permanent storage (requiring a single payment for indefinite retention). Both options use at-cost pricing, supported by Irys’s multi-revenue structure that blends storage fees, execution fees, and programmable data transactions. This approach enables Irys to keep prices competitive while ensuring economic sustainability.

Irys delivers immediate data access and unlimited horizontal scaling. As demand increases, the network boosts capacity by incorporating validators who demonstrate ongoing upkeep of their designated data partitions.

Josh Benaron established Irys in 2023, and the project operates out of the UK. At age 19, Benaron left his computer science studies to develop Bundlr, a layer-2 data solution for Arweave. Over a three-year period, this initiative increased the network's volume from 15,000 daily transactions to 15 million per day, eventually handling more than 95% of Arweave's data transactions.

While working on Bundlr, Benaron brought on over 300 projects and secured $3 million in funding. After years of helping data-focused companies move onchain, he launched Irys to advance his goal of providing the optimal user experience for builders scaling data on blockchain technology. Irys completed an extended seed round raising $10 million in 2024, followed by a Series A raise of another $10 million in 2025.

Irys distinguishes itself by making Programmable Data its core primitive. Via the IrysVM, this feature enables smart contracts to natively read, transform, and run instructions embedded in stored data directly on the network. This capability allows developers to build applications that leverage not just their own data, but also data from other protocols within the ecosystem.

Unlike first-generation datachains, which must charge well above cost for storage to stay solvent because it is their main revenue source, Irys uses an at-cost pricing model. The network sustains profitability through three distinct fee markets: storage, execution, and Programmable Data transactions. This structure lets validators remain profitable even when storage fees reflect actual physical infrastructure costs. As programmable data usage grows, node operators collect execution fees, forming a reinforcing loop where lower storage costs boost adoption, increased adoption raises execution volume, and that volume supports the network.

Additionally, Irys provides infinite data capacity via horizontal scaling. When demand rises, new validators enter the network and verify the ongoing maintenance of their specific data partitions. With instant retrieval speeds and flexible storage ledgers that let users select between temporary or permanent options, Irys offers performance comparable to centralized systems while preserving onchain traits like decentralization and immutability.

Irys secures its Datachain through a hybrid Useful Proof of Work and Stake (uPoW/S) consensus model that links validator financial incentives to data dependability. To join the consensus process, validators are required to stake $IRYS tokens and continually demonstrate that they are preserving their designated data segments. This structure ensures alignment: participants receive rewards for maintaining data integrity and acting honestly, while misconduct or data loss results in slashing, meaning the loss of their staked tokens.

The network distributes annual rewards of 2% to both miners and validators, with this rate halving every four years. Nevertheless, Irys’s long-term security framework does not depend on inflation. It relies instead on deflationary tokenomics where usage generates scarcity. Specifically, the protocol burns 50% of execution fees and 95% of term-storage fees. Fees for permanent storage are directed to the non-circulating Irys Storage Endowment, which supports perpetual data retention.

As activity on the network increases, these burns are expected to eventually exceed emissions, leading to a supply shock. In this scenario, the $IRYS token becomes progressively scarcer even as demand for execution and storage rises. Consequently, greater amounts of onchain data and execution tighten the token supply, which bolsters security incentives as the token’s value appreciates.