Raw Thoughts Re Kaspa’s Next Big Upgrade(s)
Original Post Link
You don’t end on a crescendo, and it is no secret that several anticipated upgrades are waiting on the sidelines for Kaspa. Primarily, the Dagknight (DK) protocol and the ZK L1<>L2 bridge. These two major endeavors may look independent, but I see strong merit in bundling them into a single hardfork (reasons below). I also argue this bundled effort is the right window to incorporate the foundational L1 changes needed to support ongoing research into MEV‑resistance and oracle‑voting.
A word on deferring DK to this point. I acknowledge that per past statements we expected to be post‑DK by now. Context for the long delay: (1) after the Rust rewrite, moving from 1→10 bps (blocks/sec) was too natural a follow‑up to ignore, and I dove into ~1‑year of work there. (2) Strong community push for smart contracts; in the absence of formal committees planning the next phase we reasoned that prioritizing smart contract enablement would let a builder community form around the Kaspa app layer, and that unleashing this potential (and its ripple effects) would let us refocus on L1 perfection without bottlenecking ecosystem growth.
This post provides a bird’s‑eye overview of active + upcoming Kaspa R&D efforts and sketches their relation graph.
DK: Dagknight is a ’22 ordering‑protocol research paper by myself & @hashdag; it evolves GHOSTDAG (GD). A (mostly written) follow‑up post will deep‑dive DK across: – practical benefits / applications of its abstract “no a priori delay bound” property – a breakdown into four main components → raw development phases – broader system / consensus implications – applied research for efficient incremental algorithms (notably the cascade voting procedure) – protocol (and paper) relaxations / simplifications – “resistance to Internet chaos”: practical limits + engineering caveats
ZK: In the past year, there has been an ongoing publicly visible effort to establish the landscape of ZK over Kaspa. The results of these efforts can mostly be viewed in Kaspa’s research forum under the L1<>L2 category. Kaspa’s approach is to support based ZK rollups, where “based” means the ZK layers / rollups / dapps fully commit to L1 sequencing—so L1 serves all three roles: sequencing, data availability, settlement. The base mechanisms to support this are largely established. The main area still under heavy research is atomic / synchronous composability (multi‑rollup transactions that land atomically). Explaining the vision and mapping current research there deserves its own dedicated post.
Why bundle DK + ZK: Their technical complexities barely overlap, so development can proceed in parallel and merge cleanly. That’s the engineering case. There is also a safety case: we (strongly) conjecture DK yields faster practical convergence of total DAG ordering. Under normal operation the delta is likely inconsequential; under powerful attack attempts DK’s convergence could be much faster—possibly by orders of magnitude. Faster convergence of total order is especially valuable for smart‑contract systems that are highly order‑sensitive. This further strengthens the case for linking the two upgrades.
Additional elements that should ship with them are support for reverse MEV auctions and oracle voting mechanisms (two of @hashdag’s ongoing research efforts with @yaish_aviv and @elimmea respectively; see his recent Sydney/HK talks), seizing the opportunity to address some of DeFi’s hardest problems using Kaspa’s unique structure. Once full smart contracts are live we will inevitably inherit the MEV + oracle weak spots seen elsewhere. By making a few minimal, high‑leverage consensus changes now, we can “apply the remedy before the blow”. Engineering cost here is negligible relative to DK + ZK while ecosystem upside is large. Here is how we can approach each:
MEV. Proposed approach: reverse auctions in which miners offer kickbacks to users for transaction‑ordering (or bundle) rights. Kaspa’s parallel 10 bps DAG already produces intra‑round competition; formalizing a kickback path captures that value for users instead of private orderflow brokers. L1 requirements are small: add a canonical kickback route and a deterministic auction‑ordering rule in consensus (how to rank conflicting bids; details are still open afaik). Game‑theoretic refinements can follow post‑fork, but a base path should exist in my opinion.
Oracles. The strategy for oracles is to leverage Kaspa’s high bps to enable a robust, real-time attestation network, with data aggregated from numerous miners each round. From an L1 perspective, the main consideration is whether to tie this system to PoW for greater security/sybil resistance. The practical step would be to add miner voting mechanics at the consensus level. This is a low-cost, preparatory change that provides significant future flexibility for L2 oracle designs.
Overall I expect dk/zk branches to begin landing soon in rk’s main repository. Looking forward to this turning into a beautiful decentralized open source coding voyage
Indepth interview With Michael Sutton (July-2025)
Kaspa Core R&D Milestones Broken down into Project Summaries, Problems Solved & User Benefits
Based strictly on Michael Sutton’s July 2025 X post, this document breaks down the four primary R&D upgradesthat are being considered for bundling into Kaspa’s next hardfork. Each section includes:

What It Is: The evolution of Kaspa’s consensus model, DagKnight is a successor to GHOSTDAG. It introduces a no-delay-bound model, faster convergence in transaction ordering, cascade voting, and improved resilience under network stress.
Why It Matters: This is the natural next step for Kaspa’s L1 protocol, supporting more deterministic ordering, better handling of global latency, and paving the way for order-sensitive systems like smart contracts.
Who Benefits:
- Miners:
- Enhanced block inclusion and stability during turbulent network conditions.
- Fewer orphaned blocks = more consistent rewards.
- Developers:
- Enables tightly ordered execution paths for smart contracts.
- Cleaner protocol logic for building tooling.
- Merchants:
- Faster, more reliable confirmations even during network stress.
- Supports instant checkout use cases.
- Entrepreneurs:
- Strengthens app performance under scale.
- Reduces backend unpredictability.
- Enterprise Markets:
- Foundation for secure, real-time systems (finance, logistics).
- Improves trust in decentralized infrastructure.
- Academics:
- Introduces novel research ground in voting-based DAG convergence.
- Improves analytical models for protocol stability.
- Everyday Users:
- Fewer delays or glitches during wallet or app interactions.
- Reliable experience even at peak activity.
ZK Layer (L1 <> L2 Bridge)
What It Is: A zero-knowledge rollup architecture where Kaspa L1 provides sequencing, settlement, and data availability. Designed to support atomic rollup composability and scalable privacy-preserving apps.
Why It Matters: Kaspa is aiming to scale via rollups without sacrificing decentralization or finality. By anchoring all L2 activity directly to L1, it maintains full integrity and composability.
Who Benefits:
- Miners:
- Increased fee volume from rollup traffic.
- Keeps PoW central in a ZK-powered world.
- Developers:
- Build scalable apps with L1 trust guarantees.
- Synchronous inter-rollup composability for seamless UX.
- Merchants:
- Enables private, high-speed payment systems.
- Onboards customers with scalable throughput.
- Entrepreneurs:
- Launch dApps without bootstrapping full chains.
- Gain ZK benefits with real settlement.
- Enterprise Markets:
- Infrastructure for private, audit-proof applications.
- Supports regulated or compartmentalized data access.
- Academics:
- New field: ZK + DAG + full L1 settlement.
- Study composability and state validity.
- Everyday Users:
- Apps feel faster, cheaper, and more secure.
- Greater privacy without sacrificing usability.
Reverse MEV Auctions
What It Is: A block-building model where miners offer kickbacks to users in exchange for ordering or inclusion rights—formally capturing value that is currently extracted privately.
Why It Matters: Most MEV systems are predatory. This flips the model: competition benefits users directly while still compensating miners fairly.
Who Benefits:
- Miners:
- New source of revenue through transparent competition.
- Reinforces decentralization by avoiding centralized order flow.
- Developers:
- Build apps with fair ordering assumptions.
- Mitigates front-running and sandwich attacks.
- Merchants:
- Stable, predictable transaction processing.
- Avoids hidden costs during payment interactions.
- Entrepreneurs:
- Launch DeFi or trading dApps on a level playing field.
- Create systems with baked-in user incentives.
- Enterprise Markets:
- Establish ethical trading engines with compliance.
- Ensure pricing mechanisms aren’t manipulated.
- Academics:
- Explore game theory in decentralized auctions.
- Observe MEV dynamics in a DAG context.
- Everyday Users:
- Better transaction outcomes and lower hidden fees.
- Fairness becomes a visible part of the app experience.
Oracle Voting Mechanisms
What It Is: An L1-native attestation system where miners vote on external data (e.g. prices, weather, events) in real time. Builds toward secure oracle feeds tied to PoW.
Why It Matters: Oracles are essential but typically centralized. This embeds truth-sourcing into consensus itself, using Kaspa’s high-frequency block production.
Who Benefits:
- Miners:
- Participate in voting = added responsibility + rewards.
- Strengthens role as trusted infrastructure.
- Developers:
- Native, secure access to real-world data feeds.
- Eliminate reliance on off-chain data oracles.
- Merchants:
- Use dynamic pricing or logic tied to external factors.
- Automate offers or fulfillment triggers.
- Entrepreneurs:
- Build data-driven apps (insurance, sports, logistics).
- Enable event-based smart contract execution.
- Enterprise Markets:
- Establish verifiable, auditable external inputs.
- Strengthen compliance and SLA systems.
- Academics:
- Research decentralized attestation at scale.
- Model trust-minimized data pipelines.
- Everyday Users:
- Real-world apps that react to real-world data.
- Better experiences in finance, games, services, and beyond
ZK Layer (L1 <> L2 Bridge)
Reverse MEV Auctions
Oracle Voting Mechanisms