It’s been a milestone-packed week across the Kaspa ecosystem. Founder Dr. Yonatan Sompolinsky spotlighted a groundbreaking paper on Proofs of Useful Work, while core developer Michael Sutton cut through the noise with a sharp take on Bitcoin's structural vulnerability. The community buzzed with speculation around a potential Kaspa ETF, and the Kaspa Finance team took to the XXIM podcast to share updates on their upcoming DEX.

Meanwhile, Igra Labs officially incorporated in Switzerland, Kasplex celebrated its 1.5 millionth block, and Ashton from Nacho the Kat appeared on the Tangem podcast to talk memes, community, and decentralized development. To top it all off, you can now book flights, hotels, and adventures around the world using KAS.

Let’s dive into all the details.

Proof-of-Useful Work (PoUW)

Kaspa creator Dr. Yonatan Sompolinsky shared an important new research paper by Ilan Komargodski, Itamar Schen, and Omri Weinstein, which introduces a novel Proof-of-Work (PoW) mechanism called Proofs of Useful Work (PoUW). This mechanism could fundamentally change how mining functions. Unlike traditional PoW, which requires miners to perform arbitrary and energy-intensive calculations, PoUW allows miners to select their matrix multiplication tasks, such as those used for AI inference, while still maintaining all the essential security properties of classic PoW.

This innovative approach, the first viable useful PoW since the concept emerged about a decade ago, addresses one of the biggest criticisms of traditional PoW systems: their vast energy waste. By tying mining work to valuable computations in high-demand fields like AI, PoUW could create a sustainable funding source for mining, helping to mitigate the security budget drain many blockchains face.

However, it's misguided to think of proof-of-work as wasting electricity, power, and hardware. Many people believe that proof-of-work should be "useful" — this is a misnomer. Proof-of-work is already useful as it provides an additional layer of security to a distributed system. It not only protects against Sybil resistance but also improves consensus security, as proof-of-work should be thought of as a weapons defense system. This idea is well-formed by Jason Lowery in his book, Softwar: A Novel Theory on Power Projection and the National Strategic Significance of Bitcoin. Lowery argues that the ability to convert energy and hardware (e.g., ASICs or GPUs) into computational power, and subsequently into the potential to add new blocks to the blockchain, is a form of power projection similar to a national military.

Furthermore, proof-of-work provides unforgeable costliness in the creation of bitcoins — in other words, it creates stronger, harder money. But imagine this: Lowery also argues how PoW could also one day be used as a form of security for all of cyber security, especially with the U.S. Space Force. Useful? We think so.

Other PoUW critics also claim that introducing this alternative form of "usefulness" might open new attack vectors. 

The PoUW team counters this by retaining a constant wasteful overhead and emphasizing that the diversity and scale of computation markets should mitigate these risks.

While PoUW still requires optimization for high throughput, this paper marks a significant milestone toward politically and environmentally sustainable PoW systems. The cryptocurrency community is closely watching as this promising research develops.

Kaspa ETF on the Way?

This week, JH (@oneforonehaha) shared an update on ongoing Discord conversations regarding a potential Kaspa ETF. He mentioned that during the Bitcoin Conference in Las Vegas, he and Wolfie (@Kaspa_HypeMan) met with Steven McClurg, CEO of Canary Capital—the firm behind the TRX staking ETF application. While the SEC has yet to respond to the ETH staking ETF, the first US-based SOL staking ETF launched last week with 12 million USD in inflows. A Kaspa ETF could cost around 1 million USD and take 8 - 12 months in the US, but it may be easier to launch in the EU, where the Kaspa Ecosystem Foundation (KEF) is in talks with FiCAS. The community is exploring a potential crowdfund vote and may nominate a "community rep observer" to join future meetings and ensure transparency.

In response to the ETF discussion, Ethan (@Kaspa_Kraken) pointed out that a Kaspa ETF offers more advantages than drawbacks. He emphasized that it would grant Tier 1 market access without requiring a wait for a major exchange listing while also opening the door to institutional investors, such as hedge funds and pensions, that currently can't buy KAS. An ETF would signal regulatory credibility, provide diversification opportunities, and help introduce Kaspa to traditional investors who may not be familiar with it. We agree with Ethan; launching a Kaspa ETF would highlight the project's impressive technology and attract a whole new wave of interest.

Kaspa Finance Team: Bringing Advanced DeFi to Kaspa

This week on the XXIM podcast, Ankit sat down with James and Mirza, the co-founders of Kaspa Finance, to discuss their mission to bring next-generation decentralized finance to the Kaspa ecosystem. Backed by the Kaspa Foundation and ViaBTC, this experienced team is set to launch a Uniswap v3-style DEX designed specifically for Kaspa's high-speed, scalable network.

James and Mirza bring a wealth of experience, having developed over 30 protocols on top of Ethereum, Polkadot, BNB Chain, and Polygon. Their background in DEXs, protocols, and DeFi tooling uniquely positions them to build sophisticated financial infrastructure tailored to Kaspa's architecture.

The DEX they're building will introduce concentrated liquidity, custom fee tiers, and universal routing—features that allow liquidity providers to maximize capital efficiency and traders to achieve better execution through optimized paths across multiple token pairs. A demo shown during the podcast highlighted a user-friendly interface for swapping tokens, adding liquidity, and managing positions.

Additionally, they're developing educational resources and walkthroughs to support user onboarding and plan to integrate AI-powered tools to help users optimize their strategies. Future updates will include aggregator features, trading bots, and cross-chain capabilities, all designed to expand Kaspa's role in the broader DeFi landscape.

To support launch momentum, Kaspa Finance will roll out airdrop campaigns and community incentives while prioritizing strategic capital from VCs over public token sales. The KFC token will debut following the DEX mainnet launch, with an IOU system in place and eventual listings on major centralized exchanges planned once market conditions align for fair price discovery.

Additionally, be sure to interact with the Kaspa Finance testnet to qualify for the multi-phase KFC airdrop campaign, which rewards early users for engaging with its DeFi platform on Kasplex (Kaspa EVM). Participants can earn points by completing social media tasks, performing swaps, farming, staking, providing liquidity, reporting bugs, referring others, and creating original content. Extra bonuses are available for consistency, early participation, and high-quality contributions. With real-time leaderboards and multipliers, it’s a dynamic opportunity to get involved early. Full details and step-by-step instructions are available at boxmining.com/kaspa-finance-full-airdrop-guide and app.kaspafinance.io/airdrop .

Igra Labs is Officially Official

The Swiss are known for their excellence in watches, cheese—and now, DEXs. We're excited to share that the Igra Association is now officially incorporated in Switzerland.

This milestone marks a new chapter for Igra Labs, as the Swiss-based Association will lead the charge in growing and decentralizing the Igra ecosystem. It also paves the way for a future DAO that will gradually assume responsibility for protocol governance, validator incentives, and community grants.

To coincide with this milestone, Igra Labs shared an in-depth post outlining their roadmap for bridging Kaspa's L1 with the Igra L2. The strategy is designed to be flexible, evolving in tandem with the Kaspa core, particularly in the implementation of ZK opcodes.

Phase one, "community bridging," will run through April 1, 2026, and relies on a multi-signature wallet managed by signatories chosen by the community. This setup allows users to bridge KAS to iKAS with full transparency and a clear path forward, and most importantly, no manual migration is required.

Phase two will depend on the progress made in Phase One and technical developments from Kaspa Core. Igra may upgrade to either MPC (multi-party computation) bridging, which leverages permissionless validator sets and FROST threshold signatures, or ZK bridging, the most trustless option powered by zero-knowledge proofs. No matter the route, Igra's architecture ensures a secure and seamless user experience at every stage.

Additionally, Igra Labs is now a premium sponsor for the Kaspa Experience, taking place this September 13, 2025, in Berlin. Visit the site here for more information and to purchase tickets. 

Kasplex hits 1.5M Blocks

The Kasplex L2 testnet is rapidly progressing, reaching a key milestone of 1.5 million blocks and an estimated 6 million transactions processed. Blocks are generated instantly as L1 transactions are detected, highlighting the efficiency of Kaspa’s infrastructure. The network remains stable with daily upgrades, and no critical issues have been reported. Fine-tuning is now underway. With strong performance and reliability, Kasplex is steadily advancing toward mainnet deployment. Congrats on this momentous achievement! 

Kasia Updates

Coin Athlete debuted Kasiabook.com, a directory where users can store and browse verified Kasia addresses—essentially functioning like a digital phone book. As of July 13, 2025, the site lists 51 verified addresses.

Kasia has released version 0.2.1, a minor but meaningful update that builds on the recent v0.2.0 release. This version introduces several new features, including support for Progressive Web App (PWA) installation, which allows users to install Kasia directly, just like a native app. QR code scanning has also been added, making it easier to start new chats or process withdrawals with a quick scan. Additionally, users will now receive alerts for new messages while the app is open, enhancing real-time communication.

A few key fixes are included as well. Message previews now reliably display the latest messages, and nicknames are correctly shown in message headers for improved clarity in conversations. On the design side, the handshake panel has been redesigned, offering a more streamlined and user-friendly interface.

Looking ahead, the team is actively working on the much larger v0.3.0 update, which promises more significant changes and enhancements. Stay tuned for what’s next.

“Tell Us About Yourself”, Ashton from Nacho

In the latest episode of the Tangem Podcast, Ashton from Nacho the Kat joined host Anna to discuss how a meme coin evolved into a cornerstone of the Kaspa community. The interview offered valuable insights into the project's origins, ethos, and future ambitions.

Nacho the Kat is more than just a pet-themed token; it's a fully decentralized, community-run initiative that launched as the first fair token on Kaspa's KRC20 standard. As Ashton explained, "We are the first fair launched token on Kaspa's KRC20, and we operate completely in line with the values of Kaspa... 100% decentralized."

The project originated organically from a group of crypto enthusiasts who connected through Discord and bonded over their shared belief in Kaspa's potential. "We were a group of online friends that had never met in person that wanted to contribute and organize our efforts together," Ashton shared.

What sets Nacho apart is its emphasis on inclusivity and open dialogue. Ashton described their Discord as a space where even negative feedback is welcomed: "We welcome the negative feedback. We encourage it. 'Hey guys, tell us what we're doing wrong so we can improve and get better.'"

The team has focused on creating a safe and friendly environment that is both accessible and impactful. "We want the first initial experience when people join the Nacho community to be welcoming, exciting, and safe for all ages and types of people," Ashton emphasized.

Although Nacho began as a meme token, the team has since expanded into serious infrastructure contributions, including the first KRC20 block explorer and an open-source Kaspa mining pool. Ashton explained, "All of our marketing... is about user-friendliness... But this cat makes a big impact."

Nacho has also partnered with Tangem for a limited-edition co-branded wallet, which sold out instantaneously—underscoring the strength of the community and the project's growing popularity.

Decentralization remains a pillar of the Nacho project. Ashton noted, "Big decisions are pushed back to the community to decide... We've seen at least three proposals come out just for our latest product that changed the entire development direction."

The Nacho team has always been fantastic to collaborate with, and we at KASmedia are delighted to see all their success.

Travel the World with KAS

Kaspa is going places—literally. You can now use KAS to book over 3 million flights, hotels, and activities through Travala.com, covering destinations across Europe, Asia, North and South America, Oceania, and Africa. From luxury resorts to unique boutique stays, Travala brings the best of global travel to your fingertips.

The platform also features adventure guides to major cities, business travel services, mobile apps, travel gift cards, and a helpful blog with booking tips, like the best times to fly and top destinations for holidays like Valentine’s Day. Thank you to Captain Sats for sharing this exciting news. 

Celebrate Kaspa’s 4th Birthday in NYC

From November 7–9 in Liverpool, NY, join 150 guests each day for three action-packed days of blockDAG innovation, a live hackathon, mining zone demos, Syracuse food trucks, open buffets, crypto merch, and daily raffles.

Every ticket includes entries to win ASIC miners, KAS bundles, hardware wallets, and more. Tickets are available now at kaspaevents.xyz and can be purchased with over 100 cryptocurrencies, including KAS. Spots are limited and going fast—secure yours today

Huge Crowd at the Kaspa Education Series in Nigeria 

The second installment of the Kaspa Education Series at the University of Nigeria, Enugu Campus (UNEC) drew an even larger crowd than the first—proof of the growing momentum in Kaspa's educational outreach. Attendees enjoyed a dynamic mix of blockchain learning, games, networking, refreshments, and on-the-spot rewards.

Sponsored by the Kaspa Ecosystem Foundation (KEF), TechyJaunt, Blockchain University of Nigeria, TEH, Proof of Works, and Kasper, the event received glowing feedback. One participant shared, "The event was superb," while another said, "Thank you for the educational session; it was really interesting. We hope for more opportunities to come together and share insights."