From Ideology to Infrastructure
For institutions, decentralization is not a belief system — trust, data integrity, and auditability matter far more. Dusk is built around that reality. Privacy on Dusk is not about concealing wrongdoing; it is about allowing regulated assets to operate efficiently without exposing sensitive data, while still remaining provable when regulators require it.
To achieve this, #dusk introduces a dual-mode ledger:
Moonlight for transparent, public transactions
Phoenix for shielded, confidential settlement
Developers can choose the appropriate mode per transaction, enabling public transparency where needed and privacy where legally required.
The network is secured by Succinct Attestation, Dusk’s novel proof-of-stake consensus mechanism. It delivers fast, deterministic finality, a non-negotiable requirement for capital markets, clearing, and settlement systems.
Most importantly, Dusk embeds compliance directly into smart contracts. KYC/AML enforcement, reporting rules, transfer restrictions, and trading logic are handled on-chain. Dusk is not attempting to reinvent DeFi — it is positioning itself as regulated market infrastructure on a public blockchain, designed to earn the trust of banks and regulators from day one.
Regulation by Protocol: Legal Alignment from Day One
Dusk aligned early with European regulatory innovation. The project is actively pursuing participation in the EU DLT Pilot Regime (DLT-TSS), which allows trading and settlement to occur within a single regulated blockchain infrastructure.
If granted a DLT-TSS license, Dusk would function as a legally recognized on-chain trading and settlement venue — effectively acting as a Central Securities Depository (CSD) on a public blockchain. Ownership records and settlement finality would live in smart contracts, not off-chain databases.
Unlike most blockchains, Dusk explicitly references MiCA and MiFID II in its protocol design.
Examples include:
Mandatory identity gates for regulated assets
Whitelisted investor access
Forced transfers under court or regulatory order
On-chain governance for dividends and corporate actions
These controls introduce intentional centralization at the asset level — by design, so securities can exist legally on-chain. Compliance is not layered on later; it is embedded into the protocol itself.