Despite billions of dollars being invested in blockchain scaling software, validators still rely on the same public internet infrastructure that slows down streaming video and online gaming. Double Zero aims to solve that bottleneck with a dedicated fiber optic network. In late September 2025, the project obtained a no-action letter from the SEC, confirming that its 2Z token does not qualify as a security. While providing regulatory clarity, the project aims to achieve blockchain speeds comparable to traditional financial systems such as Nasdaq.
instead of building another Layer 1 blockchain (e.g. Ethereum) or layer 2 scaling solution (e.g. Ethereum) or layer 2 scaling solution (e.g. arbitrator), Double Zero calls itself the “N1” network. This term refers to the physical network layer that underlies all blockchain protocols. It’s not a new blockchain, it’s a “new internet” for the existing one. Think of it as an alternative to the public internet, but built specifically for blockchain communications. Launched in late 2024, the project adheres to one core principle:Increase bandwidth and reduce latency” (IBRL). Initial research is focused on the Solana ecosystem, where the founders are from, but the protocol will work on any high-speed blockchain.
Background and History: Who Built Double Zero?
A team with combined expertise in blockchain, high-frequency trading, and telecommunications founded Double Zero in 2024. The key co-founders bring the following expertise:
- austin federa – Former Head of Strategy at Solana Labs
- andrew mcconnell – HFT Network Infrastructure Specialist
- mateo ward – Experts in carrier-grade fiber and shortwave technology
This idea was born while working on Solana's Firedancer client. Developers have realized that public internet infrastructure creates a fundamental bottleneck for high-performance blockchains. No amount of software optimization can solve these physical constraints. This insight led them to consider whether dedicated networks could solve problems that consensus algorithms alone cannot solve.
From announcement to funding
Double Zero Foundation announced this protocol on December 4, 2024. From the beginning, they positioned this as an infrastructure rather than a blockchain platform. Funding quickly followed. The token round in March 2025 raised $28 million at a valuation of $400 million. Multicoin Capital and Dragonfly Capital led the round, with MH-Ventures and GSR joining as participating investors.
Breaking through and implementing regulations
A major regulatory milestone occurred on September 29, 2025, when double zero went into effect. safe something never seen before SEC no action letter. This decision confirms that 2Z does not qualify as a security and that the programmatic distribution of tokens to contributors is not a securities transaction. mainnet beta version launched Testnet staking went live in early that September, allowing users to stake SOL for dzSOL and support network testing prior to the mainnet beta rollout.
What problems does Double Zero address?
Problems arise when blockchain relies on public internet infrastructure designed for general web traffic rather than high-frequency financial transactions. Problems quickly pile up.
- traffic jam – Blockchain traffic competes with video streams and file downloads for bandwidth.
- Routing inefficiency – Compounding latency across multiple hops between validators
- packet loss – Interrupt validator communication and force retransmission
- jitter – Performance becomes unpredictable even when average latency appears acceptable
These limitations prevent blockchain from achieving the performance levels that traditional finance routinely handles. NASDAQ processes thousands of transactions per second with microsecond latencies. Most blockchains cannot come close to it when limited by standard internet connectivity.
Why software alone is not enough
Software optimizations can help, but eventually reach a limit. Validators can rely on internet service providers and routing protocols built for different purposes while running fully optimized code. Double Zero claims that by addressing these fundamental infrastructure constraints, it can remove bottlenecks that cannot be solved with software alone.
What is the solution? A dedicated global fiber optic network that completely avoids public internet congestion. The network aims to leverage multicast protocols, low-latency routing, and dark fiber infrastructure to achieve speeds up to 10 times faster than standard connections. This combination of hardware and software allows us to process up to 1 million transactions per second on supported chains.
How does Double Zero's network architecture work?
Two interconnected rings form the core design. The outer ring interfaces with the public Internet and handles connections to users and applications. The inner ring manages optimized private blockchain traffic between validators and nodes. Critical consensus communications occur over dedicated channels rather than competing for bandwidth on a shared infrastructure.
Double Zero Ring (Double Zero White Paper)
Contributing to distributed infrastructure
The construction of the network is done in a decentralized manner. Participants donate unused bandwidth, optical equipment, or fiber capacity in exchange for token rewards. Instead of one company owning everything, ownership is spread across contributors. These may include:
- Data centers with excess fiber capacity
- Telecommunications provider with unlit dark fiber
- Place operators equipped with optics on useful routes
Liquid staking lowers the barrier to entry. Validators can stake SOL and receive dzSOL, allowing them to participate in the network without the need for special hardware or negotiating fiber access agreements. Meanwhile, development remains open source. Malbec Labs and the Double Zero Foundation will contribute to the repository, which will be published in October 2025 to enable community-driven development.
technical implementation
This architecture utilizes multicast protocols that efficiently deliver data to multiple recipients simultaneously. Routing algorithms select the path that minimizes delay based on availability as well as real-time network conditions. Dark fiber, cables that sit unused and are activated exclusively for blockchain traffic.
The core repository was made publicly available in October 2025. Malbec Institute and double zero foundation On GitHub. This move to open source supports community-driven development by allowing external developers to review the code, suggest improvements, and build applications on top of our infrastructure.
This design targets blockchains that achieve 1 million transactions per second. Although initial work is focused on Solana, the architecture supports any distributed system that requires high-bandwidth, low-latency communications.
What is the role of the 2Z token in the network?
native $2Z Tokens keep the network running through several key functions.
- Contributor compensation – Bandwidth and fiber providers earn programmatic rewards based on actual usage metrics
- Network access fee – Users pay connection fees with 2Z tokens
- network security – Secure your infrastructure and generate rewards with staking mechanisms
The SEC's decision removes significant regulatory uncertainty for U.S.-based businesses. The ruling confirmed that 2Z acts as an infrastructure utility, not a security one, to create a compliance framework for programmatic delivery.
Discussion on token distribution
The allocation structure, which favors teams and investors over the community, has drawn some criticism. Critics highlight market makers' allocations, such as 28% to Jump Trading, that they see as favoring insiders. However, the founders emphasize long-term locks and programmatic rewards to match network utility. Compliance with the SEC provides additional regulatory oversight to deter fraud. Still, skepticism persists in some parts of the community.
economic model
Programmatic emissions reward continued contributions to network capacity. Distribution is tied to measurable infrastructure additions. Contributors who add fiber capacity to new regions earn rewards as long as their infrastructure remains up and in use. Contributors can earn income based on the bandwidth provided. Users pay based on usage. Stakeholders secure infrastructure through economic bonds.
Development progress: from announcement to mainnet
After multiple development stages, this announcement led to the launch of the mainnet (beta version). The December 4, 2024 announcement introduced the concept of the protocol and explained why dedicated infrastructure can solve blockchain performance limitations that cannot be fully addressed by software approaches.
Major development milestones
A funding round in March 2025 accelerated development and enabled the first fiber contract. During the testnet phase, technical issues, optimized routing algorithms, and refined contributor rewards were identified, all of which were resolved before the mainnet beta launch. Participating community members provided feedback that shaped the final design decisions.
Regulatory approval and mainnet launch occurred within days of October 2025, suggesting careful coordination is needed to ensure legal compliance before token distribution begins. Open source code releases allow external developers to explore the codebase and contribute improvements.
Post-launch priorities
Post-launch priorities will focus on a few key areas.
- Expanding the scope of fiber application – Visualized through a map showing areas that turn blue as capacity is added
- Validator integration – Simplify connection setup and reduce technical barriers.
- Multi-chain support – Adaptation to different consensus mechanisms and data structures beyond Solana
- Mainnet stability – Transition from beta to full mainnet based on metrics and community feedback
Ecosystem, partnership and community building
Several projects have integrated Double Zero's infrastructure.
- pais network – Deliver oracle price feeds faster
- Crypto.com – Added 2Z token trading for liquidity
- flash trade – Improved connectivity allows leveraged trading
- deflo – Incorporate networks into DEX aggregation services
Validators including Unruggable and Figment have joined the network. These established operators increase their credibility through participation. This is essential because the entire value proposition relies on increasing validator communication speed.
As of early October 2025, the network has achieved rapid adoption and is approaching a 25 percent stake in Solana with over 40 locations and a 10x capacity upgrade from the testnet. This early traction demonstrates validator interest in dedicated infrastructure for high-performance blockchain communications.
Community participation
Community building is primarily done in the following ways: discordwith nearly 73,000 members, users earn roles through verification and content creation. Verification systems exclude bots from genuine participants. Contributors who create educational content, identify bugs, or help others get recognized may also receive additional token allocations.
The X account has grown to over 60,000 followers. The audio space enables real-time discussions where community members ask questions and founders explain technical decisions. Social media focuses on technical updates rather than price speculation.
Does double zero represent a new scaling approach?
Most blockchain projects focus on software such as consensus mechanisms, data structures, sharding schemes, and computational efficiency. Ethereum Implement sharding. Solana optimizes parallelism. Layer 2 solutions move computations off-chain. All of these approaches assume that the underlying Internet infrastructure remains constant.
Physical layer and software optimization
Double Zero takes a different view. Software approaches eventually run into constraints imposed by the physical layer. By addressing this foundation, the project aims to eliminate bottlenecks that remain despite software improvements.
High-frequency trading firms have done something similar, investing in dedicated fiber connections to shave milliseconds off. Because those milliseconds generated millions of dollars worth of trading advantage.
Economic feasibility questions
This economic model differs from high-frequency trading companies, which justify infrastructure costs through direct trading profits. Blockchain validators rely on block rewards, transaction fees, and token incentives to cover infrastructure costs.
The testnet phase of the project provided initial performance data. Full validation comes from widespread adoption across multiple chains and real-world usage conditions.
Regulatory precedent
The SEC’s decision creates a framework for how infrastructure tokens can achieve compliance, potentially providing a template for other projects seeking regulatory certainty.
conclusion
Double Zero launched its mainnet beta with $28 million in backing, SEC regulatory clearance, and fiber optic infrastructure, with the goal of improving blockchain speed by 10x. With early integration with Pyth Network, Crypto.com, and various other systems, this project will address infrastructure bottlenecks that cannot be resolved through software optimization alone. Solana Ecosystem projects to demonstrate early adoption.
The token allocation structure and hardware requirements create different decentralization trade-offs than software-only protocols. However, long-term token locks and regulatory compliance provide some assurance.
Real-world performance will determine whether dedicated blockchain infrastructure becomes the next frontier of scaling or remains a specialized solution for high-performance applications. This approach requires coordination across technical, economic, and regulatory dimensions while overcoming the practical challenges of building a global physical infrastructure.
For more information, please visit the official websitedouble zero Website and please follow@doublezero X for updates.
source of information
- double zero of x:Notice (December 2024 to October 2025)
- double zero website: General information
- Alea Research: “DoubleZero: Rewiring Blockchain Networks – What You Need to Know” (2025)
- Double Zero/Malbec Institute: Technical documents
- Github.com: Malbec Labs and Double Zero Foundation repositories
- Cryptorank.io: Funding round information
