Dusk Network is designed for a problem most blockchains deliberately avoid: how to build financial infrastructure that is both compliant and private. Instead of treating regulation as an afterthought, Dusk starts from the realities of institutional finance, where confidentiality, enforceable rules, and provable transparency must coexist.
At its core, Dusk is not just a privacy blockchain. It is a settlement-first network built specifically for regulated markets and tokenized real-world assets (RWAs), where scalability, legal certainty, and controlled privacy are essential for adoption.
Dual Settlement Model: Public and Private Value Transfer
Dusk introduces two native modes of value transfer on its settlement layer:
Moonlight — a public, account-based system optimized for transparency and interoperability.
Phoenix — a shielded, note-based system powered by zero-knowledge proofs, designed to keep transaction amounts and counterparties confidential while still proving correctness.
This dual model reflects real financial workflows, where some transactions must be visible while others require strict confidentiality. Dusk integrates both modes at the protocol level, making it suitable for regulated use cases without sacrificing privacy.
Modular Architecture Built for Compliance and Scalability
Dusk’s architecture separates settlement from execution, allowing the base layer to remain compliant while multiple execution environments operate above it. The network is structured into three core layers:
DuskDS — the foundational layer responsible for consensus, data availability, settlement, and the native bridge.
DuskEVM — an EVM-equivalent execution environment built on the OP Stack with support for EIP-4844, enabling Ethereum-compatible development while settling on Dusk.
DuskVM — a dedicated privacy execution environment focused on zero-knowledge applications, gradually evolving into its own specialized layer.
This modular design accelerates adoption by allowing developers to use familiar Ethereum tooling while benefiting from Dusk’s compliant settlement infrastructure.
Networking and Consensus Optimized for Settlement Certainty
Dusk treats networking and finality as first-class priorities. The network uses Kadcast, a structured peer-to-peer overlay protocol designed to reduce bandwidth usage and deliver predictable latency compared to traditional gossip-based systems.
Consensus follows a staged process:
A provisioner proposes a block.
A committee validates the block.
A separate committee ratifies and finalizes it.
This design prioritizes settlement certainty over raw throughput, making Dusk suitable for institutional-grade financial infrastructure.
Native Compliance and Asset Infrastructure
Compliance is embedded directly into Dusk’s protocol stack.
Zedger: Regulated Asset Protocol
Zedger enables confidential security contracts and full lifecycle management for tokenized securities. It supports features such as:
Transfer caps and restrictions
Dividend distribution
Governance and voting
Identity-based account limitations
These capabilities allow regulated assets to be issued and managed on-chain without compromising compliance requirements.
Hedger: Privacy for EVM Applications
Hedger brings zero-knowledge functionality to DuskEVM using precompiled contracts for ZK operations. This makes privacy features accessible to EVM developers while maintaining auditability and compliance.
Identity Layer: Selective Disclosure for Regulated Markets
Dusk introduces Citadel, a self-sovereign identity protocol that enables selective disclosure. Users can prove eligibility—such as jurisdiction, accreditation status, or age—without revealing full personal data.
This identity primitive is essential for regulated on-chain markets, where compliance must be enforced without exposing sensitive user information.
The Role of the DUSK Token
The DUSK token functions as the unified fuel across the entire ecosystem:
Staking and settlement on DuskDS
Gas fees on DuskEVM
Gas for privacy applications on DuskVM
Dusk lists a maximum supply of 1,000,000,000 DUSK, with historical distribution including an ICO in 2018 that raised $8 million and allocations across ERC-20 and BEP-20 representations.
Native Bridging and Ecosystem Interoperability
Dusk’s native bridge is validator-operated and designed to move value across layers without wrapped assets or custodians. The long-term plan is to migrate ERC-20 and BEP-20 DUSK tokens into DuskEVM as the primary environment for users and integrations.
This approach creates official pathways for value transfer within the ecosystem while avoiding reliance on external wrappers.
Bridge Incident and Roadmap Implications
On January 16, 2026, Dusk published a Bridge Services Incident Notice describing unusual activity involving a team-managed wallet used in bridge operations. As a precaution, bridge services were paused.
Dusk stated that the bridge will remain temporarily closed until the review is completed and that further updates will be shared once a confirmed plan and timeline for reopening are finalized. This incident highlights how critical secure bridging is to Dusk’s modular roadmap and DuskEVM launch strategy.
Chainlink Integration and Regulated Data Infrastructure
Dusk is adopting Chainlink standards, including CCIP, DataLink, and Data Streams, in collaboration with NPEX.
DataLink delivers official NPEX exchange data on-chain.
Data Streams provide low-latency, high-frequency price updates.
This integration strengthens Dusk’s regulated market infrastructure by ensuring reliable data, controlled interoperability, and verifiable price feeds—key requirements for institutional adoption.
The Strategic Direction of Dusk Network
Dusk’s roadmap is focused on three core priorities:
Securely restoring bridge operations to support reliable cross-layer transfers.
Expanding DuskEVM adoption through Ethereum-compatible tooling and developer accessibility.
Scaling tokenized real-world assets by integrating licensed market infrastructure and high-integrity data sources.
By combining compliant settlement, privacy-preserving technology, modular execution environments, and institutional-grade data infrastructure, Dusk Network positions itself as a foundational layer for regulated on-chain finance.