Dusk Network (DUSK)

Overview

Dusk Network (DUSK) is a layer‑1 blockchain built to bring regulated finance on‑chain while keeping sensitive data private. It blends two ideas that rarely meet in one protocol: strong privacy for users and businesses, and tools that help institutions follow financial rules. To do this, Dusk uses zero‑knowledge cryptography, a fast proof‑of‑stake consensus called Succinct Attestation, and a dual transaction design that lets users choose either transparent or shielded transfers. DUSK is the native asset that pays fees, fuels smart contracts, and secures the network through staking. (docs.dusk.network)

At a high level, Dusk aims to be a public, permissionless network where companies can issue and manage securities and other real‑world assets, users can transact privately, and regulators can still audit activity when needed. Its architecture, transaction models, and token standards were designed with this goal in mind, especially for European rules such as MiFID II and MiCA. (docs.dusk.network)

History & Team

Dusk started in 2018 in Amsterdam. The founding group includes engineers and business leads: Emanuele Francioni, Fulvio Venturelli, Jelle Pol, Pascal Putman, and Mels Dees. The project was set up to combine enterprise‑grade privacy with compliance from day one. Early technical work focused on research in zero‑knowledge proofs, a new consensus design, and a network layer able to spread data quickly. (siliconcanals.com)

After several research and test phases, Dusk ran public networks in stages (internal clusters, dry runs, and a named testnet). The team shipped Nocturne (the stable public testnet) and Lunare (a fast‑moving devnet) as stepping stones to production. Mainnet rollout began in December 2024 and produced the first immutable blocks on January 7, 2025. (dusk.network)

Dusk’s backers over the years include COSIMO X, RR2 Capital, Blockwall Management, and Bitfinex. The project also completed a token sale in late 2018 to fund development. (dusk.network)

Leadership has expanded as the network matured. For example, the company announced a new Chief Marketing Officer and described a board role to support growth into both decentralized and traditional finance channels. (dusk.network)

Technology & How It Works

Architecture at a glance

Dusk is organized in two layers:

• DuskDS, the settlement and data layer that handles consensus, data availability, and the native transaction models.
• DuskEVM, an execution layer that runs EVM smart contracts and connects to the settlement layer through components such as Hedger.

This split lets developers build with familiar EVM tools while using Dusk’s privacy and compliance features at the base layer. (docs.dusk.network)

Dual transaction models: Moonlight and Phoenix

A core idea in Dusk is giving users two native ways to move value:

• Moonlight is an account‑based, fully transparent model similar to ordinary account balances. It suits cases where visibility is required (for example, exchange deposits or public reporting).
• Phoenix is a shielded, note‑based model that hides amounts and counterparties using zero‑knowledge proofs while still preventing double spends. Users can switch between Phoenix and Moonlight in‑protocol.

The Transfer Contract coordinates both models and also allows fee payment from either style of balance. (docs.dusk.network)

Privacy, identity, and selective disclosure

Dusk makes privacy programmable. The network standardizes how to encrypt data for auditors and prove policy compliance without exposing personal details. Citadel, Dusk’s zero‑knowledge KYC framework, lets a user prove they meet a requirement (such as being eligible to hold a security) without sharing raw identity documents with each platform. (dusk.network)

For regulated instruments, Dusk uses Zedger and the XSC (Confidential Security Contract) standard to encode rules from regimes like MiFID II directly into tokens. XSC includes features such as whitelisting, force transfers for corporate actions, capped ownership, and auditor access to private state—implemented through zero‑knowledge proofs and selective disclosure. (docs.dusk.network)

Consensus: Succinct Attestation (SA)

Dusk’s proof‑of‑stake consensus is called Succinct Attestation. Stakers, known as provisioners, are selected via a deterministic sortition process to play roles in three steps—proposal, validation, and ratification—forming committees that create and finalize blocks. The design aims for fast final settlement and scales through committee sampling. (docs.dusk.network)

Networking: Kadcast

Under the hood, nodes exchange data using Kadcast, an efficient UDP‑based overlay network that reduces bandwidth, improves latency, and remains resilient under churn. Audits of Kadcast have reported high code quality and security practices. (github.com)

Virtual machine and developer stack

Smart contracts run in a zero‑knowledge‑friendly virtual machine (Piecrust) within the Rusk node software, with contracts compilable from Rust or any language targeting WebAssembly. Dusk also supplies libraries, a CLI wallet, and a web wallet, along with guides for exchange and wallet integrations. (dusk.network)

Tokenomics & Utility

Supply and issuance

• Initial supply: 500,000,000 DUSK.
• Emissions: an additional 500,000,000 DUSK distributed to stakers over 36 years.
• Maximum supply: 1,000,000,000 DUSK.

The project conducted a private sale in November 2018. Today, ERC‑20 and BEP‑20 representations exist for exchange access, and users can migrate to native DUSK through a burner contract as mainnet operates. (docs.dusk.network)

Fees and units

Transactions consume gas priced in LUX, where 1 DUSK equals 1,000,000,000 LUX. Collected fees are added to block rewards and redistributed by protocol rules. (docs.dusk.network)

Staking and roles

Any holder can stake to participate in consensus. Key parameters include:

• Minimum stake to become a provisioner: 1,000 DUSK.
• Stake maturity: 2 epochs.
• Unstaking: supported without a hard lock penalty.
• Slashing: “soft slashing” reduces participation/rewards for misbehavior or downtime rather than burning the staked principal. (docs.dusk.network)

Rewards and distribution

Each block’s reward combines newly emitted DUSK and the fees from included transactions. In the current setup, rewards are shared across roles and the development fund, with a performance component for block generators. Unused portions of that performance slice are burned, linking network usage to gradual token sink effects. (docs.dusk.network)

Allocation and vesting

Historic allocation included tokens for the sale, team, advisors, development, exchange liquidity, and marketing, with vesting running from 2019 through 2022. This early distribution financed the multi‑year research and build‑out of the network. (docs.dusk.network)

Utility in the network

DUSK pays for:

• Transaction fees across Moonlight and Phoenix.
• Deploying and calling smart contracts.
• Staking and earning rewards for securing the chain.
• Services within applications (for example, token issuance flows or compliance checks encoded in contracts). (dusk.network)

Ecosystem & Use Cases

Dusk is designed as a home for regulated digital assets and privacy‑aware financial apps. Several pieces of the stack demonstrate this focus:

• Security tokens and RWAs: With XSC and Zedger, issuers can bring equities, bonds, funds, and other instruments on‑chain with built‑in policy rules and life‑cycle actions like voting or dividend/coupon payouts. (docs.dusk.network)
• Identity and compliance: Citadel powers zero‑knowledge KYC and selective disclosure so platforms can verify eligibility without over‑collecting data, aligning privacy with legal checks. (dusk.network)
• Exchange connectivity: The Moonlight rail offers full transparency for exchange flows while Phoenix serves private balances and transfers. Documentation outlines how exchanges can meet AMLD5, MiCA, and the Transfer of Funds Regulation using Moonlight. (docs.dusk.network)
• Settlement currency: Through a partnership with Quantoz Payments and NPEX, a MiCA‑compliant electronic money token (EURQ) is being brought to Dusk, enabling euro‑denominated settlement for regulated use cases. (dusk.network)
• Custody: The team has announced Dusk Vault, a decentralized, institution‑grade custody approach developed with partners, reflecting a focus on onboarding traditional finance. (chainwire.org)

Developers can deploy privacy‑preserving smart contracts, build compliant marketplaces, create confidential treasuries, and implement features like multisignature controls using the public (Moonlight) rail when transparency is required. (docs.dusk.network)

Advantages & Challenges

Advantages

• Privacy with auditability: Zero‑knowledge proofs, dual transaction rails, and selective disclosure keep users’ data private while allowing regulators to verify rules were followed. (docs.dusk.network)
• Compliance‑first token standards: XSC and Zedger bring real policy logic on‑chain, which is rare among public chains. (docs.dusk.network)
• Fast finality and efficient networking: Succinct Attestation plus Kadcast target quick, deterministic settlement and reliable data propagation. (docs.dusk.network)
• Familiar developer paths: EVM compatibility (DuskEVM) and WASM contracts broaden the tool choices for builders. (docs.dusk.network)

Challenges

• Complexity: Zero‑knowledge systems, dual rails, and compliance logic raise the learning curve for new developers and users.
• Ecosystem scale: Compared with older general‑purpose chains, Dusk’s app catalog is still growing, and integrations continue to roll out.
• Changing regulations: The network is designed for rules like MiCA and MiFID II, but regulation evolves, and implementations must track updates over time. (docs.dusk.network)

Where to Buy & Wallets

DUSK is available on major exchanges. In the United States, Dusk Network can be purchased on Binance.US (trading pair DUSK/USDT, BEP‑20 deposits supported). (support.binance.us)

DUSK is available on KuCoin for spot trading, with additional product support such as margin and futures provided by the exchange. (kucoin.com)

BEP‑20 DUSK also trades on PancakeSwap; the official BEP‑20 token address is documented by PancakeSwap. (pancakeswap.medium.com)

For storage and on‑chain actions, the Dusk Web Wallet provides a simple browser interface, and the Rusk Wallet offers a command‑line option with features for sending funds, converting between public and shielded balances, and staking. Standard ERC‑20 and BEP‑20 wallets can hold their respective representations of DUSK on Ethereum and BNB Smart Chain. (docs.dusk.network)

Regulatory & Compliance

Dusk was designed to align with the needs of regulated markets. The protocol’s public rail (Moonlight) makes transaction flows fully transparent and easier for exchanges and custodians to monitor. The private rail (Phoenix) uses zero‑knowledge proofs to hide amounts and counterparties on‑chain, while still allowing selective disclosure to authorized entities. This approach lets institutions meet obligations under European frameworks such as MiCA, MiFID II, AMLD5, and the Transfer of Funds Regulation while protecting user privacy. (docs.dusk.network)

For issuance and secondary trading of regulated assets, the XSC standard and Zedger protocol encode policy directly into the tokens—things like whitelists, ownership caps, and corporate action support—so issuers and venues can automate compliance and audits. (docs.dusk.network)

Regarding faith‑based considerations, Dusk Network is generally viewed as permissible (halal) by many observers because it runs on a proof‑of‑stake model rather than interest‑bearing lending. Network rewards come from protocol emissions and fees for services, not from riba. These conclusions rest on how the protocol works—specifically its use of proof‑of‑stake for consensus and fee‑based compensation—rather than on any promise of guaranteed returns. (docs.dusk.network)

Future Outlook

With mainnet live, Dusk’s roadmap focuses on broadening programmability and adoption. Planned features include “hyperstaking,” which brings smart‑contract logic to staking—opening paths for privacy‑preserving delegation, liquid staking, affiliate programs, and other custom incentive designs. Combined with DuskEVM and the dual transaction rails, this expands what developers can build while staying within a compliance‑aware framework. (dusk.network)

On the ecosystem side, the EURQ electronic‑money token integration and partnerships with regulated venues aim to support real settlement currencies and institutional workflows directly on the network. Improvements to the node stack, wallets, and the block explorer continue to make operations easier for both users and infrastructure providers. (dusk.network)

As tokenization grows across capital markets, Dusk’s combination of confidentiality, auditability, and standardized security contracts places it in a niche built for regulated finance—especially in jurisdictions moving ahead with clear rules for crypto‑assets. (docs.dusk.network)

Summary

Dusk Network is a purpose‑built blockchain for financial markets that need both privacy and compliance. Its key innovations—dual transaction rails (Moonlight for transparency, Phoenix for confidentiality), the Zedger/XSC standard for regulated assets, and the Succinct Attestation proof‑of‑stake consensus—work together to deliver fast finality, programmable privacy, and policy‑aware tokens on a public chain. DUSK, the native asset, secures the network through staking and pays for transactions and smart‑contract activity.

Backed by a multi‑year research effort and a growing set of integrations, Dusk offers an architecture that feels familiar to developers (EVM support) while adding the cryptographic and legal‑tech features institutions expect. For users and businesses looking to move real‑world assets on‑chain without exposing sensitive data, Dusk presents a clear, privacy‑first path that still respects the rules of modern finance. (docs.dusk.network)