What a week for Kaspa!  From the long-awaited Kasplex L2 launch, which brings smart contracts to life, to Nick Szabo himself weighing in on Kaspa discussions, the spotlight has never been brighter. We also saw the debut of a DEX aggregator, fresh progress on KRC20 bridges, and Kaspa making waves all the way to Singapore. Let’s dive into this week’s biggest developments.

Smart contracts are Live!!!!!!!

This past week, Kaspa reached a major milestone: the Kasplex Layer 2 (L2) finally launched, bringing full EVM smart contract functionality to the ecosystem. 

Here’s what makes it crucial:

• EVM Compatibility & DeFi Readiness: Developers can now deploy Ethereum-compatible dApps and DeFi protocols directly on Kaspa, bridging a major utility gap.

• Cost & Performance Gain: Early tests indicate that running smart contracts on Kasplex is significantly more cost-effective than on Ethereum. 

• Rollup + DAG Synergy: Kasplex inherits Kaspa’s speed, security, and decentralization while utilizing rollup designs to scale smart contract execution. 

• No Token Wrapping Needed: KAS remains the gas token on L2, adding real utility to the Kaspa ecosystem without the need for wrapping. 

The launch, originally scheduled for August 31, 2025, was postponed to allow for additional safety checks to ensure a smooth rollout, including hardware stress tests, node resilience, and disaster recovery preparedness. 

This represents a significant step forward, positioning Kaspa in the “programmable money” race by combining smart-contract capability with its core strengths. The stage is set for developer migration and the development of enhanced DeFi applications. Congrats to the Kasplex team for this huge achievement!

Since the launch, several DEXes have been operating on the new Kasplex L2, including: 

• KaspaCom and their pump-fun style launchpad, LFG.Kaspa.

• Zealous Swap

• MetaMask to trade using the KAS Bridge

• KSPR DEX and KSPR Fun

• Wild Predict

For more information, please see our in-depth article on the History of Smart Contracts, here: kasmedia.com/xxxx. 

Michael Sutton’s Comments on the Date of the Kasplex Launch

On Kasplex's launch day, Michael Sutton shared his perspective on ZK, open-source, and decentralization.

Sutton began by clarifying the role of Kaspa in its current pre-zk phase, that the Kaspa layer 1 (L1) serves as a sequencing and data-carrying layer, with no settlement or proof verification occurring on-chain. Whether it's EVM calldata, KRC-20 inscriptions, or Kasia chat messages, Kaspa simply provides the data, leaving interpretation up to the player 2's (L2s).

Because of this design, Sutton noted that an L1<>L2 KAS bridge cannot be fully trustless at this stage, no matter how sophisticated the architecture. That doesn't mean all L2 assets require trust, but bridging specifically does. To ensure decentralization in normal L2 operations, he emphasized the importance of open-source code and independent validators. Without that transparency, users are relying on a degree of trust.

Turning to Kasplex, Sutton expressed admiration for the team's efforts to deliver smart contracts on Kaspa as quickly as possible. He framed the launch as a "win-win": if it is successful, it demonstrates Kaspa's unmatched speed and throughput; if there are hiccups, they are not flaws of the core protocol but rather challenges that can be refined over time.

Sutton also gave a brief look at ongoing research and development:

• DK: An initial implementation is already underway.

• VProgs: A Rust prototype is in progress, extending beyond the yellow paper.

His reflections serve as both a reminder of where Kaspa stands today and a clear-eyed vision of what's needed to achieve full decentralization in the future. 

Nick Szabo and Yonatan’s Exchange

Over the weekend, famed crypto-economist Nick Szabo weighed in on a Kaspa-related thread started by Bitcoin enthusiast Brandon Turp. Turp noted that even some of the "top 1% IQ" figures in traditional finance fail to grasp the importance of hard money. Szabo replied:

"They've spent their whole lives swimming in the fiat goldfish bowl; they don't know of any different environment."

Kaspa community member @number33_ joined the discussion, suggesting that while Bitcoin maximalists share the same limited perspective, Kaspa may actually offer a stronger solution. Szabo then asked about the number of nodes required to ensure true trust minimization.

Kaspa creator Dr. Yonatan Sompolinsky jumped in, highlighting how the upcoming DAGKNIGHT protocol strengthens Kaspa's trust model by ensuring security even in chaotic internet conditions, thereby removing Bitcoin's 10-minute latency assumption. He also emphasized Kaspa's numerous continuously validating nodes, efficient pruning methods, and cryptographic proofs, such as FlyClient+MLS, to ensure scalability and decentralization.

Szabo then replied with the best comment ever:

"P.S. I think blockDAGs have a great deal of potential, but it is best realized when emphasis is put on applying the better tradeoffs to improving trust minimization rather than on other desiderata such as performance. Bitcoin remains king because so many have prioritized so many other desiderata over trust minimization."

We couldn't agree more: "blockDAGs have a great deal of potential." 

XXIM Podcast KASPA's own 1inch DEX Aggregator, SeaSwap

This week, the XXIM podcast, hosted by Ankit, featured a discussion with SeaSwap founders Dor and Andrey about the KAT bridge. The conversation shed light on how this initiative strengthens the Kaspa ecosystem by enabling tokenized assets and bridging value across chains.

Much like 1inch on Ethereum, SeaSwap leverages algorithms to optimize trades; however, the team clarified that they aren't forking existing platforms but rather building a product tailored for Kaspa. Zealous Swap users also benefit from Nacho NFT discounts, maintaining reduced trading fees. The team performed a demo that showcased an auto-refreshing interface, which tracks balances and routes in real-time, highlighting the platform's user-friendly design.

The SeaSwap team brings deep experience to the project. Dor has an MBA and over five years of experience in crypto markets, while Andrey has nearly a decade of experience in software engineering and four years in blockchain. Their shared vision is to build before seeking capital. 

That way, they can gain community trust first and expand later. As the Kaspa ecosystem expands, SeaSwap is positioning itself as a crucial component of DeFi infrastructure.

XXIM Podcast with L2 Bridge with Sione from KaspaCom

Continuing their research into Kaspa L2 bridges, this week the XXIM Podcast hosts Kristina and Ankit interviewed Sione, founder and CEO of KaspaCom, about their upcoming L2 bridge. (Congrats to Sione, who recently got married and just returned from his wedding vacation!)

KaspaCom is a leading DEX where users can swap, lend, borrow, launch KRC20 tokens, manage NFTs, and more. The team is building a unidirectional bridge from Kaspa L1 to L2, with a focus on security and utility. Unlike the bi-directional KAT Bridge, KaspaCom’s approach mitigates the risks associated with holding assets on both sides. The bridge works by burning tokens on Kaspa L1, where they are permanently removed at the burn address. New tokens are then minted on L2 and verified through Kasplex indexers. KaspaCom is also collaborating with Quex Oracle and anticipates launching a testnet within two weeks, accompanied by comprehensive documentation.

Sione also shared insights on the broader KRC20 landscape. He advised new projects to prioritize DEX listings over CEX listings, cautioning that some lower-tier exchanges charge for listings while inflating trading volume through questionable practices. He further noted that projects should avoid spending raised funds on centralized exchange listings and instead direct that capital toward actual project development.

As a leading DEX and KRC20 launch platform, KaspaCom remains deeply connected to the ecosystem and aims to provide reliable bridge infrastructure to support its growth. Sione also expressed that having multiple bridge options is healthy for the ecosystem. Users who simply want to move their L1 tokens to L2 can use the KaspaCom bridge, while those who still want functionality on L1 may prefer other solutions, such as the KAT Bridge. However, he emphasized that there is far more utility on L2, making it the natural place for adoption.

We are excited to see more projects launching on Kaspa, especially with a bridge developed by such an established DEX.

For more information on KaspaCom, please see our article, A KaspaCom Interview with Sione, Founder and CEO. 

LFG Kaspa is Live

In addition to the bridge discussed above, KaspaCom continues to be a driving force in the Kaspa ecosystem, rolling out another major product this week—LFG.Kaspa. This new app joins their growing suite of tools, which include Lending (on testnet), DEX, L1 Marketplace, KaspaCom Wallet, and the Swapbot.

LFG.Kaspa is a fully decentralized, open-source launchpad and DEX where users can trade, swap, and explore new tokens - think of it as Pump.Fun on Kaspa, but with fairer play safety rails. It comes with anti-bot protections to safeguard token launches and has been audited by both Cyberscope and CredShields for security.

On the app, users can: Create tokens, trade on the DEX, view the leaderboards, stake, set alert bots, and track stats. 

The momentum is already strong, with TVL around 584,000 KAS, nearly 2M KAS in 24-hour trading volume, and an all-time volume surpassing 7.1M KAS. Congrats, KaspaCom team, on this achievement. 

WildPredict is Live

The Wildcard DAO has officially launched WildPredict, the first and only prediction platform on Kasplex. With nearly 25k followers on X, the team has been testing the app for months, and it’s now ready for action.

Users can predict on popular sports in KAS, and with every WKAS you stake not only fuels your predictions but also earns you points that will play a role in future DAO governance.

According to Wildcard DAO, swaps and NFT support are also coming soon.

Visit Wild Predict to get started. 

KAT Bridge is Live for Projects

The Kaspa Alliance for Transparency (KAT) is launching a bidirectional KRC20 Layer 2 (L2) bridge, marking a major milestone for the ecosystem. The KAT Bridge has officially opened onboarding for KRC20 projects. Teams can now self-serve and onboard permissionlessly by proving ownership through their KRC20 deployer (Kasware / Kastle). Once verified, KAT Bridge will deploy your ERC-20 on the Kasplex EVM Mainnet and provide the official contract address to share with your community.

Projects can be onboard here: onboard.katbridge.com , with public access for individuals coming soon.

Check out last week’s Weekly Knight , The Weekly Knight: Kaspa is the Most Active PoW Network, to read more about the KAT Bridge in our summary from their XXIM Podcast episode. 

Introducing Kurve - KAS EVM Bridge: 

KURVE is a new cross-chain bridge developed by an independent team currently in stealth mode and funded by the Kaspa Ecosystem Foundation (@Kaspa_KEF). Built with the vision of becoming Kaspa’s version of Curve Finance, KURVE aims to facilitate seamless transfers between Kaspa Layer 1 and the Kasplex Layer 2 EVM network, empowering decentralized applications (dApps) with fast, secure, and cost-effective bridging capabilities.

Key Features:

• Two-Way Transfers: Deposit and withdraw native KAS between Kaspa L1 and Kasplex L2.

• Secure Infrastructure: Utilizes a Multi-Party Computation (MPC) multi-signature wallet for enhanced security.

• Developer-Friendly: Built for speed and low fees, ideal for dApp developers.

• Asset Support: Supports native $KAS on Kaspa and L2$KAS on Kasplex, with plans to expand to additional assets in the future.

Get Started:

• Bridge Portal: kasbridge-evm.kaspafoundation.org 

• Documentation: https://kaspafoundation.gitbook.io/kurve-docs 

KURVE is poised to become a cornerstone of Kaspa’s expanding DeFi ecosystem, facilitating smoother interoperability between Layer 1 and Layer 2 solutions.

Kaspa Event This Week in Singapore

Kaspa will be in Singapore to kick off Token 2049 and Digital Asset Week with a special crypto gathering. The Kaspa Ecosystem Foundation (KEF) is co-hosting “The Trading Lounge” with Coincall, for an exclusive evening of cocktails and canapés on Thursday, September 30, 2025, from 7 PM – 12 AM at Le Noir @ Marina Bay Sands. Attendance is by RSVP and approval only, bringing together industry leaders, innovators, builders, founders, institutional players, and degens for high-value networking. If you’ll be in Singapore and would like to attend, make sure to RSVP. 

Zealous Swap Tokenomics Finalized

Kaspa DEX, Zealous Swap, has finalized its tokenomics allocation. As a cornerstone of Kaspa’s DeFi ecosystem, Zealous Swap is poised to play a pivotal role in providing on-chain liquidity, trading, and staking opportunities for the community.

Tokenomics Allocation:

• 57,600,000 ZEAL (43.5%) allocated to Farms for farming incentives

• 7,200,000 ZEAL (5.4%) secured in the Insurance Fund

• 43,200,000 ZEAL (32.6%) moved to the Infinity Pool for staking rewards

• 500,000 ZEAL (0.4%) seeded for initial liquidity (Infinity Pool)

• 24,000,000 ZEAL (18.1%) locked as the team allocation

With the launch of Infinity Pools, Farms, and Memberships, Zealous Swap continues to expand its ecosystem offerings. KAT NFT staking will become available once the KAT NFT Bridge goes live, and existing KRC20 tokens can now apply to receive a verified badge on the platform.

Check out this post from Zealous Swap to see the contract addresses. 

Kaspa’s Genesis Proof

Australian Kaspa Ambassador Luke Dunshea has released the Kaspa Genesis Proof, a repository that provides tools to verify Kaspa’s current UTXO set. Built on the original genesis proof by Shai Wyborski and Michael Sutton, Luke expanded the verification logic and cryptographic guarantees to support Rust-based rusty-kaspa nodes.

SEC - CFTC Roundtable on Regulatory Harmonization Efforts

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will host a joint roundtable on September 29, 2025, at 1:00 PM EDT to discuss the future of cryptocurrency regulation.

Panelists include representatives from the SEC, CFTC, Nasdaq, Kraken, Polymarket, CME Group, Robinhood, Citadel, Bank of America, J.P. Morgan, and more.

It’s encouraging to see crypto take center stage in a discussion lasting over four hours with such influential institutions and government regulators. As Kaspa continues to grow and attract attention within the broader digital asset space, regulatory clarity will be key to supporting innovation while ensuring trust and security.

We invite everyone to tune in to the livestream at the official roundtable site.