Dusk Evolution to Multilayer Architecture

Executive Summary

Dusk is evolving into a three‑layer modular stack that cuts integration costs and timelines while preserving the privacy and regulatory advantages that set the network apart. The new architecture slots a consensus/data‑availability/settlement layer (DuskDS) beneath an EVM execution layer (DuskEVM) and a forthcoming privacy layer (DuskVM).

Why the change? 

• It accelerates application rollout;
• Integrations with wallets, bridges, exchanges, and service providers drop from months to days thanks to standard Ethereum tooling; 
• Existing EVM dApps migrate with minimal code changes, eliminating bespoke work once required for native Dusk; 
• Codebase becomes smaller, cheaper to maintain, and inherits proven EVM scalability from day one.

A single DUSK token fuels all three layers, and a validator‑run native bridge moves value between them without wrapped assets or custodians. Because NPEX’s MTF, ECSP (Equity Crowdfunding Service Provider) and Broker licences apply to the full stack, institutions can issue, trade, and settle real‑world assets under one regulatory umbrella, bringing compliant DeFi to market faster.

Multilayer Architecture

The multilayer architecture is achieved by integrating EIP-4844 (Proto-Danksharding) into Rusk, the implementation of Dusk node as well as adding a port of Optimism as EVM execution layer to settle on Dusk ledger. This brings the following benefits:

DuskDS: Data & Settlement Layer

Handles consensus, staking, data availability, native bridge, and settlement. The MIPS-powered pre-verifier on the DuskDS node (i.e. Rusk) checks state transitions before they hit the chain, so there is no 7-day fault window like on Optimism.

DuskEVM: EVM Application Layer

Runs standard Solidity contracts via familiar tools (Hardhat, MetaMask). It becomes the primary venue for DeFi and compliant apps, streamlining onboarding for developers, exchanges, and custodians. Moreover, it will also feature Fully Homomorphic Encryption (FHE) operations to enable auditable confidential transactions and obfuscated order books, ideal for regulated financial instruments.

DuskVM: Privacy Application Layer

Executes complete privacy‑preserving applications using the Phoenix output‑based transaction model and Piecrust virtual machine (currently embedded in DuskDS but being extracted into DuskVM).

Development is led by Dusk’s internal team of expert engineers, in consultation with Lumos (the team that audited Kadcast), an external development organization we are collaborating with for faster rollout. Lumos is assisting with core runtime infrastructure, the DuskDS/DuskEVM bridge, and starter applications (staking, DEXs, etc.).

Advantages

Operational Efficiency

The modular design reduces overhead as each layer can be optimised for its specific role, making the system cheaper to maintain, easier to scale, and more secure.

Faster Time to Market

Custom integrations on a bespoke L1 can take 6-12 months and cost 50× more than EVM deployments. Exchanges, for example, spent months adapting to native Dusk, whereas EVM integrations can be completed in ~2 weeks.

Plug‑and‑Play Compatibility & Interoperability 

The EVM Application Layer uses standard Ethereum tooling and removes the need for custom explorers or proprietary wallets. External EVM dApps can migrate to Dusk and bring their user base while gaining native compliance, access to regulated tokenised assets, privacy‑preserving infrastructure, and a fully licensed environment.

Controlled State Growth

DuskDS stores only succinct validity proofs; execution‑heavy state lives on the application layers, keeping full‑node hardware requirements low.

Token & Native Bridge

DUSK remains the sole native token with the following roles:

• DuskDS DUSK: staking, governance, settlement
• DuskEVM DUSK: gas for Solidity dApps and transaction fees
• DuskVM DUSK: gas for full privacy-preserving applications

DUSK on the DuskEVM will become the standard for exchanges and users. The trustless native bridge enables seamless transfers between the EVM and the DuskDS.

ERC20 and BEP20 DUSK will also be migrated to DuskEVM. The bridge between the DuskDS and DuskEVM is native and trustless, no external custodians or wrapped assets required.

Validators and full nodes simply run the new release. No action is required from stakers, and all balances remain intact while instantly gaining DuskEVM compatibility.

Benefits for Institutions

With this setup, Dusk can onboard assets from regulated venues like NPEX, 21X, and other asset managers already in discussion, while offering developers plug-and-play infrastructure.

Institutions benefit from:

• A licensed environment (via NPEX) for custody, issuance, and trading
• One‑time KYC across all apps on Dusk
• Composability across apps using the same licensed assets

Because NPEX’s MTF, ECSP, and broker dealer licences (as well as the DLT-TSS, which is currently in progress) extend to the entire chain, every Dusk application gains a regulatory umbrella unavailable on Ethereum, Polygon, ZKSync, or any other network.

This makes Dusk the only network offering privacy, composability, and compliance. All under one complete license umbrella.