What is Newton Protocol (NEWT)?

Deep Dive

1. Purpose & Value Proposition

Newton Protocol solves the challenge of embedding regulatory compliance (e.g., sanctions, KYC) directly into blockchain transactions. By converting legal requirements into code, it allows institutions to use decentralized systems without sacrificing compliance. For example, stablecoin issuers can restrict transfers to verified wallets, while AI agents operate within predefined boundaries.

2. Technology & Architecture

The protocol combines Trusted Execution Environments (TEEs) and zero-knowledge proofs to evaluate policies offchain while maintaining onchain verifiability. When a transaction is proposed:
- Operators (decentralized validators) check compliance using on/offchain data.
- Aggregators compile BLS signatures into a single proof, which smart contracts verify before execution.
This hybrid model balances privacy, scalability, and auditability (Newton Protocol Docs).

3. Tokenomics & Governance

NEWT’s 1 billion fixed supply powers three core functions:
- Staking/Restaking – Operators and delegators earn rewards for securing the network.
- Fees – Applications pay NEWT for policy evaluations.
- Governance – Token holders vote on protocol upgrades and policy standards.

Conclusion

Newton Protocol reimagines compliance as a programmable layer for decentralized systems, bridging regulators and blockchain innovators. Its architecture positions it as critical infrastructure for institutional DeFi and AI-driven finance.

What milestones could accelerate adoption of policy-driven blockchains?