Overview
Palm Network launched in 2021 as an Ethereum sidechain specifically designed for NFT minting and trading, backed by ConsenSys. Its marquee launch was supporting Damien Hirst's "The Currency" project — a 10,000 NFT collection from the renowned contemporary artist. Palm was positioned as the "green" alternative for cultural and fine art NFTs, emphasizing low energy consumption and near-zero transaction fees.
The network uses IBFT 2.0 proof-of-authority consensus with a small set of permissioned validators, including ConsenSys and other founding members. A bridge to Ethereum mainnet allows asset transfers. PALM tokens were introduced as the native gas token with a planned transition toward more decentralized governance.
Palm's trajectory mirrors the broader NFT market decline. After the initial high-profile launches, activity has dropped dramatically. The network's dependency on a single market vertical (cultural NFTs) left it vulnerable to the NFT bear market. The proof-of-authority model and small validator set make it more of a managed infrastructure service than a decentralized blockchain.
Technology
Palm uses Hyperledger Besu as its execution client with IBFT 2.0 consensus. The EVM compatibility allows standard NFT contracts (ERC-721, ERC-1155) to deploy without modification. Transaction finality is near-instant due to the small validator set, and gas fees are negligible. The Ethereum bridge enables asset portability.
Technically, Palm is straightforward — it's a permissioned EVM chain optimized for throughput rather than decentralization. The technology serves its purpose for NFT minting but offers nothing that couldn't be achieved on Polygon, Base, or other L2s with larger ecosystems.
Security
Security relies entirely on the permissioned validator set. With proof-of-authority, the validators are trusted entities — if they collude or are compromised, the network can be censored or manipulated. This is acceptable for a managed NFT platform but falls short of trustless blockchain security. The Ethereum bridge is the primary security-critical component, and its small validator set is a concern for high-value asset transfers.
Decentralization
Palm is one of the least decentralized EVM chains in operation. The proof-of-authority model with a small set of known validators (primarily ConsenSys-affiliated) means the network is effectively managed infrastructure. The PALM token introduces governance mechanisms, but effective control remains with the founding validators. This is a centralized service with blockchain characteristics rather than a decentralized network.
Ecosystem
The ecosystem peaked during the NFT boom with high-profile drops (Damien Hirst, HENI, various art projects). Current activity is minimal — most cultural NFT projects have either completed their drops or moved to other platforms. DeFi activity is near-zero, and developer interest has waned. The network's narrow focus on cultural NFTs means it has no diversified utility to sustain activity during NFT downturns.
Tokenomics
PALM token was distributed to NFT creators and users on the network, with a supply designed to reward early ecosystem participants. The token is used for gas fees (negligible amounts) and governance. Liquidity is extremely thin, exchange listings are minimal, and price discovery is unreliable. The token's utility is essentially ceremonial given the low activity levels.
Risk Factors
- NFT market dependency: Entirely reliant on a market vertical in deep decline
- Centralized infrastructure: Proof-of-authority with permissioned validators
- Declining activity: Transaction volumes and user counts have plummeted post-NFT-boom
- No diversification: No DeFi, no gaming, no general-purpose utility
- Thin liquidity: PALM token has minimal trading activity
- Ecosystem competition: NFT platforms on Ethereum, Polygon, and Base offer larger markets
Conclusion
Palm Network was a well-timed product for the NFT boom, offering a low-cost EVM environment for cultural NFT drops. The Damien Hirst partnership provided genuine prestige. However, the network's narrow focus and proof-of-authority architecture left it vulnerable to the NFT market decline. With minimal current activity, centralized operations, and no diversified use cases, Palm is a cautionary tale about building single-purpose infrastructure for hype-driven markets. The technology works; the market moved on.