TD;LR

Kaspa surpasses one billion transactions: The network reached the milestone roughly 4.4 years after its 2021 mainnet launch, highlighting the pace of activity on Kaspa’s BlockDAG architecture compared with earlier proof-of-work networks.
Protocol research and upgrade proposals advance: New discussions around KIP-20 covenant identifiers and KIP-21 partitioned sequencing commitments explore infrastructure for programmable covenants, ZK proofs, and scalable application lanes.
AI and agent infrastructure discussions expand: Developer demonstrations and interviews examined how blockchain networks may support agent identity, messaging, and auditability as AI-driven systems begin interacting autonomously across digital services.
Igra ecosystem continues infrastructure development: Igra Labs released new research on a leaderless threshold-signing protocol for UTXO bridges, while ZealousSwap prepares the first IGRA ZAP auction scheduled for March 26.
Ecosystem tools, applications, and integrations grow: New releases including the KaspaCom DEX Explorer, KaspaHub v2.6, a Kaspa News iOS TestFlight app, and ELLIPAL hardware wallet support expand the network’s infrastructure and user tooling.

CLARITY Act Advances After Senate Agreement on Stablecoin Yield

Progress has been reported on the Digital Asset Market Clarity Act of 2025 (CLARITY Act), a bill that aims to establish a federal regulatory framework for digital asset markets in the United States.

The bill passed the U.S. House of Representatives in July 2025 with bipartisan support (294–134) and has since been under consideration in the Senate. It would codify how digital assets are classified under U.S. law, clarifying regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Senate progress had stalled since January due to a dispute over stablecoin yield, with banks warning that allowing crypto platforms to pay interest-like rewards on stablecoin balances could draw deposits away from traditional savings accounts.

According to reporting from Politico, Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) said on March 20 that they had reached an “agreement in principle” with White House officials on potential language addressing the issue. The reported framework would seek to restrict yield payments tied to passive stablecoin balances, though the final legislative text has not yet been released, and the proposal still needs to be vetted with industry participants.

Alsobrooks described the negotiations in an interview, saying:

“Sen. Tillis and I do have an agreement in principle. We’ve come a long way. And I think what it will do is to allow us to protect innovation, but also give us the opportunity to prevent widespread deposit flight.”

Patrick Witt, executive director of the White House’s President’s Council of Advisors for Digital Assets, also described the development as progress, writing that the agreement represents “a major milestone toward passing the CLARITY Act,” while noting that additional issues still need to be resolved.

The tentative agreement could allow the bill to move forward in the Senate Banking Committee, where markup could occur just before or shortly after Easter, according to Senator Kevin Cramer.

Several lawmakers have also publicly supported the bill. In a recent statement, Senator Cynthia Lummis wrote:

“President Trump pledged to make America the digital asset capital of the world. The CLARITY Act is how we make that happen. Let’s get it done, once and for all.”

For the Kaspa ecosystem, the bill is relevant because it would formalize how digital assets are classified under U.S. law, potentially reducing regulatory ambiguity around commodity-style networks. Greater clarity around jurisdiction between the SEC and CFTC could influence how proof-of-work protocols, infrastructure providers, and exchanges operate in the United States. While the CLARITY Act does not target any specific blockchain, the broader framework it proposes could shape the environment in which networks such as Kaspa are developed, listed, and integrated into financial markets.

Kaspa.com Publishes Overview of KIP-20 Covenant Proposal

A new article published on Kaspa.com explains KIP-20, a proposal that introduces covenant identifiers designed to enable native tracking of covenant chains at the consensus level. In this context, a covenant refers to a programmable constraint embedded in a UTXO (unspent transaction output) that specifies how funds can be spent, allowing transaction conditions to persist across multiple transfers.

“KIP-20 introduces covenant identifiers (unique tags for covenant groups), which are 32-byte network-verified identifiers carried by UTXOs to establish a stable covenant chain across coin movements.”

The proposal addresses limitations in earlier covenant approaches, which often require carrying parent or grandparent transactions as witness data during validation. According to the article:

“KIP-20 solves these problems by introducing a minimal consensus-enforced mechanism that provides native covenant chain tracking, prevents state forgery at the consensus level, and eliminates the need for previous transaction proofs.”

By moving covenant verification from script-level validation to consensus rules, the mechanism aims to reduce transaction size, simplify covenant development, and strengthen security guarantees.

The article also notes that the proposal could support advanced use cases, including state-machine covenants, native asset protocols, and infrastructure for potential L1–L2 bridges.

KIP-20 is currently in the proposal stage, with implementation dependent on future network activation.

KIP-21 Proposes Lane-Based Sequencing for Efficient ZK Proofs

A new proposal, KIP-21, introduces a concept called Partitioned Sequencing Commitment, which would reorganize how Kaspa commits transactions to improve the efficiency of zero-knowledge (ZK) proofs, cryptographic proofs that allow verification of data without revealing the underlying information.

Instead of committing all transactions into a single linear sequence, the proposal groups transactions into separate “lanes” based on their subnetwork ID. Each lane maintains its own activity history while still allowing the network to reconstruct global ordering. According to the proposal:

“This allows ZK provers to generate proofs proportional to lane activity rather than global throughput.”

The design aims to enable applications and rollups to generate proofs using only the activity relevant to their own lane, rather than processing the full network transaction set. This would reduce the complexity of proving from O(global activity) to O(application activity).

KIP-21 also maintains compatibility with existing consensus rules by keeping a single commitment field in the block header, while introducing mechanisms to purge inactive lanes so node memory scales with recent activity rather than historical usage.

The proposal is currently in the specification stage and would require a future hard fork activation if implemented.

Kurncy Demonstrates Covenant-Based Access Control

Kurncy, a wallet application built for the Kaspa ecosystem, shared a series of posts explaining how Kaspa covenants can enforce programmable spending constraints directly at the protocol level.

“A Kaspa covenant is a programmable constraint embedded in a UTXO… It says how the funds can be spent, by whom, when, and in what sequence.”

The thread describes covenants as a form of script-enforced transaction logic that operates without a virtual machine or gas model, relying instead on protocol-level validation rules. According to Kurncy:

“If the constraint isn't satisfied, the transaction is rejected… not by an API, not by a server, but by the protocol itself.”

As part of the demonstration, the team showed a whitelisted-recipient covenant that allowed funds locked to a script to be redeemed only by a specified address. An unauthorized attempt to spend the funds was rejected by the network, while the authorized recipient successfully redeemed the transaction.

Kurncy is a non-custodial wallet for the Kaspa ecosystem, available on the Apple App Store and Google Play. The wallet supports KAS, tokens, NFTs, domains, and a marketplace within a single interface. Private keys are generated and stored directly on the user’s device, meaning Kurncy does not hold copies of user keys and cannot freeze accounts or reverse transactions. The wallet is built using the Rust-based Kaspa libraries that power the network itself.

Local AI Agent Demonstrates Kaspa Messaging Integration

A developer demonstration shared this week showed a locally running AI agent communicating over the Kaspa network using KaChat.

The setup runs the Qwen 3.5 (9B) model locally on consumer hardware (an RTX 3070) through a Hermes agent. Qwen is an open-source large language model developed by Alibaba. Messaging is routed through Kasia’s Kaspa integration, so the user can interact with the model via KaChat, a messaging application built on Kaspa designed as a decentralized alternative to platforms such as Telegram.

Dunshea said the experiment demonstrates the possibility of running AI locally while using Kaspa as a low-cost communication layer. Dunshea said:

“tldr: running AI locally (free) on old hardware, interacting with it over Kaspa (essentially free).”

The example illustrates a potential architecture in which users run AI agents entirely on local machines, using the Kaspa network as a permissionless messaging layer for remote interaction.

Dunshea said the motivation is not that AI agents must communicate through a blockchain, but that decentralized networks allow users to reach their own locally hosted systems without managing traditional remote infrastructure. Dunshea said:

“Having the capability to completely run your own agent+model locally on an entry level pc now (GPU like $200) and then communicate with it over a completely permissionless network is very compelling.”

The discussion framed this approach as part of a broader vision in which improvements in network performance could eventually allow blockchain infrastructure to operate largely invisibly to end users, similar to how modern internet infrastructure operates today.

This type of experiment highlights how high-throughput networks such as Kaspa could potentially support machine-to-machine communication layers, where locally running software agents exchange messages or trigger actions without relying on centralized infrastructure. As improvements to network performance and developer tooling continue, similar architectures may become easier to build and integrate across the broader ecosystem.

Igra Labs Publishes Draft Research on Leaderless Threshold Signing Protocol

Igra Labs has released a draft research paper describing the Igra Protocol, a leaderless coordination mechanism designed for threshold signing on UTXO-based blockchains.

The paper introduces a system that combines two-phase quorum voting with CRDT-based signature propagation to ensure that independent signers agree on a single transaction template, even when their nodes temporarily observe different UTXO states. According to the paper:

“The protocol guarantees at most one transaction signed per event, even under crash faults and temporary network partitions.”

The research stems from a practical engineering challenge: building a scalable exit bridge from the Igra Network to the Kaspa Layer-1 network without relying on centralized coordinators, hardware security modules, or overcollateralized custody models.

The protocol is designed to be UTXO-chain-agnostic, meaning the coordination mechanism could potentially extend to networks such as Bitcoin via an adapter layer. The current model assumes crash-fault tolerance with non-equivocating signers, while full Byzantine fault tolerance is identified as future work.

Igra Labs has released both a formal protocol specification and a Rust reference implementation, and is inviting researchers and engineers to review the design and participate in further development.

The team has also issued a call for a technical review, encouraging researchers to evaluate the protocol and discuss its assumptions and security model. Igra Labs noted that it is offering a grant to teams interested in accelerating the protocol toward production deployment and invited the community to stress-test its claim that the design can support UTXO bridge coordination without requiring BFT consensus infrastructure, hardware attestation, or overcollateralized custody.

Toto Finance Outlines Commodity Tokenization Model in Interview on XXIM Podcast

In a recent interview with Ankit on the XXIM podcast, Toto Finance outlined its approach to tokenizing physical commodities within the emerging real-world asset (RWA) tokenization sector.

The platform issues blockchain-based ownership records tied to vault-stored commodities such as diamonds, gold, silver, platinum, and sapphires. Users can buy, hold, trade, or redeem these assets through tokenized representations backed by third-party verification, custody infrastructure, and insurance coverage. According to the interview:

“What we brought to the table is to build a marketplace that will be listing digital twins of those real assets and make it possible for anyone worldwide to be able to purchase an asset, to trade it, but ultimately also to redeem the physical assets.”

The discussion framed RWA tokenization as a rapidly growing segment of the digital asset industry. Commodity markets alone are estimated to exceed $16 trillion globally, while tokenized commodity assets currently represent only a small portion of that total. Toto Finance said it is expanding beyond consumer-facing offerings into institutional infrastructure, including plans to tokenize in-ground commodity reserves such as copper deposits as part of mine financing structures.

The conversation also highlighted how tokenization could improve transparency, settlement speed, and global market access in commodity sectors that historically rely on fragmented supply chains and manual verification processes.

For the Kaspa ecosystem, the discussion reflects a broader trend toward bringing real-world assets on-chain. As tokenization infrastructure develops across the industry, high-throughput networks designed for fast settlement and low transaction costs may play an increasing role in supporting the movement, trading, and verification of tokenized assets at scale.

AstraSync Presents “Know Your Agent” Infrastructure in XXIM Podcast Interview

In a recent interview with Ankit on the XXIM podcast, AstraSync outlined its approach to agent identity, trust scoring, and verification infrastructure for AI systems operating across enterprise and blockchain environments.

The discussion centered on the idea that traditional KYC and AML frameworks may not be sufficient for autonomous agents. Instead, AstraSync proposes systems that incorporate agent identity, permissions, behavioral monitoring, and immutable audit trails. According to the interview:

“Traditional KYC and AML isn't enough for agents.”

The conversation framed blockchain less as a payment rail and more as an immutable audit and verification layer, allowing counterparties to confirm agent permissions, ownership history, and trust signals before granting access or authorizing transactions.

The interview also introduced AstraSync’s broader “Know Your Agent” model, in which agent trust is partly derived from the verified humans and organizations behind the deployment. In this framework, counterparties can set threshold-based policies that determine which actions different agents are permitted to perform.

For the Kaspa ecosystem, the discussion reflects a broader shift toward agent-oriented infrastructure. As projects explore AI agents, micropayments, and autonomous commerce, blockchains may increasingly serve as systems for identity, permissions, and machine-verifiable event logging alongside traditional payment functions.

KaspaCom Launches DEX Explorer

KaspaCom has released a new DEX Explorer designed to track decentralized exchange activity across its platform.

The tool allows users to monitor tokens, liquidity pools, and real-time market activity within the KaspaCom DeFi ecosystem. According to the announcement, the explorer enables users to:

“Track tokens, pools, and real-time market activity across the KaspaCom DEX.”

The release provides a consolidated interface for observing trading activity and liquidity across Kaspa-based DeFi markets.

KaspaHub v2.6 Released

KaspaHub has released version 2.6 of its platform, introducing structural updates focused on performance improvements and streamlining site content.

KaspaHub aggregates information about the Kaspa ecosystem, including news, long-form articles, and a block explorer, all in a single interface.

According to the team, the update removes redundant code and unrelated pages to better focus the platform on core Kaspa resources.

New additions include standalone progressive web apps (PWAs) for Articles, News, and the Block Explorer, a Layer-2 filter on the Ecosystem page, and several smaller quality-of-life improvements across the site.

ZealousSwap Updates Platform Ahead of IGRA ZAP Auction

ZealousSwap has rolled out a new interface for its decentralized exchange and DeFi platform as it prepares to host the upcoming IGRA token auction through its Zealous Auctions Protocol (ZAP).

According to the team, the IGRA public auction is scheduled to begin on March 26 at 4:00 PM UTC, marking the first major token distribution event hosted on the ZAP auction system. Participants will bid using iKAS, the bridged representation of KAS on the Igra Layer-2 network.

ZAP (Zealous Auctions Protocol) is a token launch mechanism that enables transparent price discovery through an on-chain auction. Rather than setting a fixed token price, participants submit bids during an auction window, and tokens are distributed at a final clearing price determined by overall demand. The model aims to reduce common launch issues such as bot-driven sniping, front-running, and extreme early price volatility.

Ahead of the launch, the auction interface has been made publicly accessible, allowing users to connect compatible wallets, review the auction page, and prepare funds on the Igra network.

ZealousSwap is a decentralized exchange and DeFi platform within the Kaspa ecosystem that provides tools for token swaps, liquidity provision, staking, and yield farming. The platform also supports asset bridging across networks, including KAS, KRC-20 tokens, NFTs, and iKAS on the Igra Layer-2 network, alongside features such as portfolio management, protocol memberships, and token-auction infrastructure.

For the Kaspa ecosystem, the launch highlights the continued expansion of DeFi infrastructure around the network. Auction-based token distribution mechanisms, such as ZAP, introduce new ways for projects to launch assets while aiming to improve fairness and price discovery for participants. As Layer-2 environments like Igra develop, tools like ZealousSwap may increasingly enable decentralized trading, liquidity formation, and token launches across the broader Kaspa ecosystem.

KasShi Introduces “Listen-to-Earn” Feature

KasShi has introduced a new “Listen-to-Earn” feature that allows users to earn Kaspa rewards by listening to music and submitting reviews on the platform.

According to the announcement, users can listen to a full track, leave a review, and receive a small Kaspa reward for their participation.

KasShi is a Kaspa-powered media platform where users can watch, share, and interact with content while earning micropayments, with rewards distributed to both creators and participants. Most viewing revenue is distributed directly to creators, while smaller interactions are aggregated and settled through batched transactions to comply with Kaspa’s storage mass limits.

The new feature expands the platform’s micropayment-based engagement model, introducing music discovery and listener feedback as additional ways users can interact with content while earning Kaspa.

Kaspa Added to ELLIPAL Titan Hardware Wallets

Kaspa is now supported on the ELLIPAL Titan series hardware wallets, allowing users to store KAS on an air-gapped device designed to keep private keys fully offline.

ELLIPAL is a hardware wallet manufacturer focused on offline crypto storage, with its Titan devices designed to operate without direct network connectivity.

The Titan wallets function without USB, Bluetooth, or Wi-Fi connections, isolating private keys from internet exposure and signing transactions through QR codes rather than direct device connections.

ELLIPAL describes the device as enabling Kaspa transactions to be signed fully offline while keeping private keys isolated from internet-connected systems.

The integration was facilitated with support from the Kaspa Ecosystem Foundation (KEF).

Kaspa Surpasses One Billion Transactions

The Kaspa network has surpassed one billion total transactions, reaching the milestone roughly 4.4 years after its mainnet launch on November 7, 2021.

For comparison, Bitcoin took approximately 15 years to reach the same cumulative transaction milestone, highlighting the pace of activity on Kaspa’s high-throughput BlockDAG network.

Thanks to Kaspa community member @elperorr for highlighting the magnificent achievement.

Kaspa Theory

Latest Articles

Moog Synthesizers and Zero-Knowledge Proofs on Kaspa

The Weekly Knight: One Billion Transactions for One Billion Kaspians

The Weekly Knight: BLAKE3 Hashing and Oxford Memories