- Mandala Chain combines a governance chain and compliance chain to maintain decentralization while meeting government requirements.
- Republik Labs focuses on real-world adoption, enabling millions of wallets and practical use cases in health, banking, and digital identity.
From community to blockchain ecosystem
Republik Labs CEO Michael Bennalack has shared insights into the company’s journey in developing Mandala Chain, a blockchain ecosystem that bridges decentralised Web3 technology with government-led public infrastructure projects in Indonesia.
Bennalack, who has lived in Indonesia for seven years and entered the blockchain space in 2017, explained that Republik Labs began as an Indonesian-language blockchain education initiative during the COVID-19 lockdown. Within a short time, the project built a community of over 100,000 YouTube subscribers, eventually evolving into a research hub supporting blockchain projects in Southeast Asia.
The pivotal moment came when a local developer introduced Republik Labs to parts of the Indonesian government seeking blockchain solutions. This led to the creation of Mandala Chain, an L1 blockchain secured by Polkadot, featuring interconnected application chains operated by government departments. The dual-chain design ensures decentralisation and community governance via the KPG token, while enabling private data control for government use cases.
Q1: Could you introduce Republik Labs and Mandala Chain to our audience? How does your platform operate, and what core problems are you aiming to solve?
Michael: At one point, a developer house in Indonesia mentioned that the government wanted blockchain solutions. We wanted to create a project where the government could use blockchain in a decentralized permissionless way. Inspired by Polkadot’s relay chain and parachain model, we developed Mandala Chain, an L1 secured by Polkadot, with government-run side chains or application chains. Mandala Chain connects government, retail, and enterprise in a single decentralized network. It is co-founded by Republik Labs, the Indonesian community, and our developer partner Baliola.”
Q2: How have you built trust with government stakeholders in Indonesia?
Michael: “Like any good business, if you’re just trying to make money, it won’t succeed. You need to solve real problems. Many regions here are underserved in infrastructure and have had data security challenges. We started by offering free research and education. For example, we hosted a two-day bootcamp for 80 politicians, teaching blockchain fundamentals, practical applications, and why it can be better than traditional systems.
By upskilling them for free and providing a knowledge base, we developed trust. Once curiosity grew, government officials began asking how blockchain could help their departments. We proposed potential solutions, created MVP products, and gradually expanded the ecosystem. Providing solutions first, rather than chasing profit, opened doors for broader adoption.”
Q3: What is the rationale behind Mandala Chain’s dual-chain model?
Michael: “We wanted to maintain decentralization while giving government clients control over sensitive data. Private blockchains can be run by government departments, but users still interact with those chains via bridges from the public network. The Mandala network is a decentralized, permissionless network governed by token holders, while interacting with government-run chains ensures data privacy where needed. This dual-chain design allows citizens to access services seamlessly while keeping government-controlled data private.”
Q4: How will Mandala Chain expand to other Southeast Asian countries?
Michael: “Every country has different requirements. We’ve already customized solutions for multiple government departments in Indonesia, covering banking, data security, decentralized identity, and health records. Piloting in Indonesia demonstrates that our model can adapt to other nations.
Emerging markets are more willing to trial new technologies, unlike established markets like Europe, the U.S., or Northeast Asia. Some neighboring countries have already asked us to replicate Mandala Chain, so our goal is to scale regionally while respecting cultural and regulatory differences.”
Q5: How is the token economy designed for utility and long-term value?
Michael: “Every application in the Mandala ecosystem ties value back to our native token, KPG. This can be through securing side chains, using it as collateral, transaction fees, staking, or tipping. Each application has a distinct use case that drives value back to KPG.
We designed this because transaction fees alone will trend toward zero in the long term, so we needed multiple mechanisms to maintain value. Some chains connecting to our ecosystem lock large amounts of KPG to prove participation or security. All activity in the ecosystem ultimately feeds back into the token, ensuring broad and sustainable utility.”
Q6: Will Mandala Chain transition to a DAO or community-governed model?
Michael: “Yes, Mandala Chain is designed to be a DAO from the outset. A collective treasury holds nearly 20% of the token supply, controlled solely by token holders. Governance decisions are made by the community. Government departments or institutions retain some autonomy over their applications, but the network itself is fully decentralized, giving the ecosystem a balance between regulatory needs and community governance.”
Q7: How do you ensure sustained adoption beyond pilots?
Michael: “Most blockchain projects start with technology and then try to find use cases and users. We’re different. We had users and use cases first. Our community already existed, and there was real demand for solutions. That’s why we built Mandala Chain rather than using an existing blockchain. This approach ensures that integrations in healthcare, banking, and identity move beyond prototypes into sustained adoption.”
Q8: What role do local developers and institutions play?
Michael: “Think of Mandala Chain like a shopping mall. The government is the anchor tenant, attracting users. Developers and startups can build around that base, gaining exposure to traffic that comes from people interacting with government services. By providing a strong existing user base, we empower partners to deploy applications and create value on top of our infrastructure.”
Q9: How do you ensure interoperability with Web2 systems, especially in low-infrastructure regions?
Michael: “Not everything needs to be on-chain. For example, medical records might remain off-chain, but ownership can be tracked on-chain. Users sign on-chain transactions to access off-chain data. Our approach is hybrid: we enhance traditional systems with blockchain where it adds value, rather than forcing everything on-chain. This ensures practical adoption even in areas with limited infrastructure.”
Mandala Chain represents a new paradigm in blockchain adoption—one that bridges the gap between cutting-edge Web3 technology and practical, government-led public services. By focusing on real-world solutions, fostering trust through education, and empowering both communities and local developers, Republik Labs is demonstrating that decentralisation and regulatory compliance can coexist. As Mandala Chain continues to expand across Southeast Asia, it offers a blueprint for how emerging markets can leverage blockchain not just as a technological innovation, but as a tool for inclusive, secure, and sustainable public infrastructure.
