What is Dusk (DUSK)?

Deep Dive

1. Purpose & Regulatory Edge

Dusk targets the tokenization of regulated securities (bonds, equities) by leveraging licenses from NPEX, a Dutch stock exchange. Its MTF (Multilateral Trading Facility) and broker licenses allow compliant issuance and secondary trading of assets like ETFs and corporate bonds on-chain (Dusk Forum). This positions Dusk as a bridge between traditional finance and DeFi, enabling features like instant settlement and audit-friendly privacy.

2. Technology Stack

The network uses a three-layer modular architecture:
- DuskDS: Base layer handling consensus and data availability via a Proof-of-Stake mechanism with ZK proofs for transaction validation.
- DuskEVM: EVM-compatible execution layer with Hedger – a module adding Fully Homomorphic Encryption (FHE) to hide transaction amounts/balances while remaining regulator-auditable (Dusk Foundation).
- DuskVM: High-privacy environment for Rust-based smart contracts using Phoenix, a transaction model shielding participant identities.

3. Tokenomics & Compliance

DUSK tokens power gas fees, staking, and governance. Unique features like gas sponsoring let institutions pay fees for users without selling tokens, while a portion of trading fees from on-chain venues flows back to stakers. This ties token utility directly to regulated financial activity rather than speculative trading.

Conclusion

Dusk is reimagining regulated finance by merging institutional compliance with blockchain’s efficiency, using privacy tech that satisfies both traders and regulators. As its EVM layer nears launch, can Dusk become the default settlement network for Europe’s tokenized securities market?