DoubleZero is a decentralized physical infrastructure network (DePIN) that provides a high-performance, low-latency global network of dedicated fiber-optic links. The protocol is designed to accelerate communication for blockchains and other distributed systems by creating a dedicated transport layer that bypasses the congestion of the public internet.

Overview

DoubleZero was developed to address the inherent limitations of the public internet for time-sensitive, high-throughput applications like blockchain consensus. The project's founders identified that the public internet, designed for general-purpose use, acts as a bottleneck for the real-time coordination required by thousands of distributed nodes. High latency, jitter, and packet loss on standard internet infrastructure can negatively impact blockchain security, validator performance, and the overall user experience. The protocol aims to solve this by creating a token-incentivized, permissionless marketplace for bandwidth, functioning as a "fast lane" for critical network traffic. ^{[1] [2]}

The network is built upon underutilized or "dark" private fiber links contributed by independent providers. These contributors are rewarded with the network's native utility token, 2Z, for providing high-quality, reliable bandwidth. Users, such as blockchain validators or RPC node operators, use 2Z tokens to pay for access to these optimized, direct routing paths. This model creates a cryptoeconomic system that encourages the growth of a robust physical infrastructure layer. DoubleZero positions itself as a foundational "N1" or physical network infrastructure layer, upon which other network-dependent applications and services can be built. The project is governed by the DoubleZero Foundation, which supports the development, decentralization, and adoption of the network. ^{[3] [4]}

History

The foundational concepts for the DoubleZero Protocol were detailed in a whitepaper published on December 2, 2024, co-authored by Austin Federa, Andrew McConnell, and Mateo Ward. The project began its development phases in early 2025, launching a permissioned testnet across seven global locations in the first quarter, followed by a public testnet in the second quarter. In March 2025, the project secured $28 million in a funding round led by Dragonfly and Multicoin Capital, which valued the company at $400 million. A closed sale of its native 2Z utility token to network validators was conducted in April 2025. ^{[3] [5] [1] [2]}

A significant milestone was achieved on September 29, 2025, when the U.S. Securities and Exchange Commission (SEC) issued a no-action letter to DoubleZero. This provided regulatory clarity for its DePIN model, confirming that the distribution of 2Z tokens to network contributors for services rendered did not require securities registration. Following this, the DoubleZero mainnet-beta officially went live on October 2, 2025. At its launch, the network comprised over 70 direct high-speed links connecting 25 geographic locations and had onboarded validators representing 22% of all staked SOL on the Solana network. The public debut of the 2Z token occurred concurrently with the mainnet launch. Shortly after, on October 5, 2025, co-founder Austin Federa publicly confirmed that the DoubleZero Foundation had not sold any of its token holdings, a statement made to address community concerns about potential market impact following the launch. ^{[2] [6]}

Technology

DoubleZero's architecture is designed to create a high-performance, decentralized network by separating critical blockchain traffic from the public internet. It utilizes a conceptual "concentric ring model" to manage data flow and security. ^[3]

Network Architecture

The network is structured into two primary layers:

• Outer Ring (Ingress/Egress): This layer serves as the interface with the public internet. It employs specialized hardware, such as Field-Programmable Gate Arrays (FPGAs), to perform edge filtering. This process involves mitigating DDoS attacks, verifying transaction signatures, and removing spam or duplicate transactions before they enter the core network, thereby reducing the computational load on individual validators.
• Inner Ring (Data Flow): This is the core transport layer, constructed from a mesh of dedicated, optimally-routed private fiber links. It is designed for high-speed, low-latency communication between network nodes and supports efficient data propagation methods like multicast.

This architecture is supported by several key components. Fiber Links are contributed permissionlessly by providers who commit to a Service Level Agreement (SLA) encoded in a smart contract, defining metrics like bandwidth, latency, and uptime. Network Devices enable these disparate links to function as a cohesive network and perform the advanced filtering functions. DoubleZero Exchange Points (DZXs) act as core interconnection hubs, similar to public internet exchanges, to facilitate efficient data transit across the global network. The entire system is managed by a Smart Contract-Defined Control Plane, a distributed system on a public blockchain that uses on-chain data to manage network configuration, routing, and pricing dynamically. ^{[3] [7]}

Key Features

The protocol incorporates several features to enhance performance and reliability for distributed systems:

• Edge Filtration: By offloading traffic verification and spam protection to the network edge, DoubleZero allows validators to dedicate more resources to core consensus tasks.
• Multicast Support: The inner ring is optimized for multicast traffic, enabling the efficient one-to-many distribution of data such as new blocks or state transitions, which is critical for synchronizing a large number of nodes quickly.
• Direct Routing: The network bypasses the multi-hop, often unpredictable paths of the public internet, instead routing data along the most direct physical path between two points, significantly reducing latency.
• Cryptoeconomic Incentives: The protocol uses a system of token-based rewards and penalties to ensure that bandwidth contributors adhere to their SLAs. This model is designed to maintain high levels of network performance and reliability.
• Verifiable Routing: The protocol aims to provide cryptographic proof of the path that data packets have taken through the network, increasing transparency and helping to address concerns related to data censorship or manipulation.

These features are designed to create a more performant, secure, and reliable communication layer for the next generation of decentralized applications. ^{[8] [7]}

2Z Tokenomics

The DoubleZero network is powered by its native utility token, 2Z. The token is integral to the network's economic model, facilitating payments, incentives, and security. The 2Z token was initially launched on the Solana blockchain as an SPL token. ^[9]

Supply and Distribution

The 2Z token has a maximum and total supply of 10,000,000,000 tokens. The DoubleZero Foundation holds a portion of the supply, which it distributes as incentives to network contributors for operational activities rather than selling on the open market. The project's founders, development team, and early venture capital investors are subject to token lockup agreements to align their long-term interests with the network's growth. ^{[5] [6]}

Token Utility

The 2Z token has four primary functions within the DoubleZero ecosystem:

• Access to Resources: Users, such as validators and dApp developers, pay in 2Z tokens to consume network resources and access its high-speed connectivity services. The protocol also supports payments in the native tokens of supported blockchains (e.g., SOL), which are then converted to 2Z on the backend.
• Contributor Payments: Network contributors who provide fiber optic links, hardware, and other services are rewarded in 2Z tokens. Payments are based on the performance, reliability, and usage of the resources they provide.
• Staking for Participation: To ensure commitment and network security, contributors and resource providers are required to stake 2Z tokens to offer their links and services to the network.
• Delegation: Token holders who do not directly contribute resources can delegate their 2Z tokens to resource providers. This allows them to participate in the network's security and incentive mechanisms and earn a share of the rewards.

This economic model is designed to create a self-sustaining cycle where demand for network services drives value for the token, which in turn incentivizes the expansion and improvement of the physical infrastructure. ^{[9] [5]}

Use Cases

DoubleZero is designed to serve as a foundational infrastructure layer for a wide range of applications, both within and outside the blockchain ecosystem, that require high-performance, low-latency communication. ^[3]

Blockchain Applications

The primary market for DoubleZero is the blockchain industry, where network performance is critical for security and scalability.

• Layer 1 Blockchains: The network helps accelerate consensus by reducing block propagation time and allows validators to operate more efficiently by offloading resource-intensive tasks like transaction filtering.
• Layer 2 Blockchains: For Layer 2 solutions, DoubleZero can speed up the process of posting data to the Layer 1 chain, facilitate coordination between multiple sequencers, and provide high-bandwidth connections to data availability layers.
• RPC Nodes and Oracles: RPC providers can use the network for DDoS protection and to ensure low-latency transaction forwarding. Real-time oracles can benefit from faster data delivery to and from the blockchain.
• Maximal Extractable Value (MEV): MEV systems can leverage the network for faster access to network state (read operations) and quicker delivery of blocks and bundles to validators (write operations), increasing efficiency.

Non-Blockchain Applications

The protocol's capabilities extend to traditional high-performance computing and communication sectors.

• Content Delivery Networks (CDNs): The network offers a flexible, on-demand source of bandwidth, allowing new CDNs to bootstrap their infrastructure or existing ones to augment their capacity without long-term leases.
• Online Gaming: DoubleZero can reduce latency and jitter for both peer-to-peer and central-server game architectures, leading to a smoother user experience.
• Distributed AI/LLM Training: The network can provide the high-bandwidth, low-latency connections needed between geographically distributed data centers for more efficient training of large language models.
• Enterprise Networking: The protocol offers a permissionless and flexible alternative to traditional private network leases, enabling enterprises to dynamically adjust their bandwidth and routing based on real-time needs.

These use cases highlight the protocol's goal of creating a new, more efficient internet backbone optimized for distributed systems. ^[3]

Ecosystem and Team

The DoubleZero ecosystem is composed of its founding team, strategic investors, infrastructure contributors, and early adopters. The project was co-founded by Austin Federa, who previously worked with the Solana Foundation. The project's whitepaper was also co-authored by Andrew McConnell and Mateo Ward of Malbec Labs, a key technical partner in the network's development. ^{[2] [3]}

The project is backed by prominent venture capital firms, with Dragonfly and Multicoin Capital leading its $28 million funding round in March 2025. The physical network is built upon infrastructure provided by a consortium of independent bandwidth contributors, including major industry players like Jump Crypto, Galaxy, RockawayX, and Staking Facilities. Early adopters and users of the network include a number of major validators in the blockchain space, such as Coinbase, Figment, and Everstake. The project initially launched with a strong focus on the Solana ecosystem, with Solana co-founder Anatoly Yakovenko providing an endorsement of the network's contribution to Solana's high-performance goals. ^{[1] [8]}

"Solana has always had the mission of synchronizing the world's information at the speed of light, and DoubleZero's fiber network brings that vision closer to reality. High-performance infrastructure driven Internet Capital Markets is how Solana competes with traditional markets, and DoubleZero is making a meaningful contribution to that vision." — Anatoly Yakovenko, Co-Founder, Solana ^[8]

Legal and Regulatory Status

DoubleZero achieved a significant regulatory milestone on September 29, 2025, when it received a no-action letter from the U.S. Securities and Exchange Commission (SEC). The letter provided clarity on the project's token distribution model, confirming that providing 2Z tokens to network contributors as compensation for work performed—such as sharing bandwidth or running nodes—does not constitute a securities offering and therefore does not require registration under U.S. securities laws. ^[2]

The decision was viewed as a landmark for the broader DePIN sector, providing a potential legal framework for other projects with similar token-incentivized infrastructure models. In a statement related to the decision, SEC Commissioner Hester Peirce elaborated on the distinction, arguing that such tokens function as payment for services rendered rather than as an investment with an expectation of profit from the efforts of others. This regulatory clarity was a key prerequisite for the project's mainnet launch and public token debut. ^[6]

“The person who runs a node, provides storage, or shares bandwidth earns a reward. These tokens are neither shares of stock in a company nor promises of profits from the managerial efforts of others.” — Hester Peirce, SEC Commissioner ^[2]

Controversies

Following the public launch of the 2Z token in early October 2025, concerns arose within the community regarding the potential for the DoubleZero Foundation to sell its large token holdings, which could negatively impact the token's market price. These concerns were amplified by initial price volatility post-launch, with at least one report noting a price drop that led to "backlash over tokenomics." In response to this speculation, co-founder Austin Federa issued a public statement on October 5, 2025, confirming that the foundation had not sold any of its tokens and reiterated that its holdings were designated for long-term network development and contributor incentives, not for short-term financial gain. ^{[6] [5]}