Many people see "on-chain compliance" as a temporary fix after house renovations—just patch it with some regulatory layer once the technical setup is complete. But the reality is completely different.

Regulatory pressure begins the moment system design starts. It forces developers to confront uncomfortable questions: Who will cover the losses if the system crashes? How truly final can the finality be? How to protect privacy while ensuring the normal operation of audit mechanisms, rather than turning all users into public records?

One protocol has chosen to directly confront these challenges. It does not avoid them; instead, it explicitly positions itself as a privacy blockchain for regulated finance—offering confidential balance and transfer records while also meeting on-chain compliance and audit requirements. Under this logic, tokens are no longer just trading tools but also a means for the protocol to enforce itself.

Why do I say this? Because in a fully permissionless system, you cannot rely on reputation, contracts, or phone calls to correct violations. The only thing you can depend on is the enforceability of the protocol itself. Tokens are that leverage.

The protocol adopts a committee-based proof of stake—Succinct Attestation mechanism. Providers are randomly selected to participate in block proposal, validation, and confirmation. This design aims for a clear goal: fast, deterministic finality, meeting the strict settlement certainty demanded by financial markets. It’s not a state where "possible rollbacks" could happen at any moment.

The staking mechanism is the first concrete implementation of this concept.