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What Is DoubleZero (2Z)? Exploring the Decentralized Protocol for Blockchain Validators

What Is DoubleZero (2Z)? Exploring the Decentralized Protocol for Blockchain Validators

Beginner
2025-10-09 | 10m
Enter DoubleZero, a groundbreaking project that takes a physical-layer approach to blockchain scaling. Instead of building another blockchain or software-based scaling solution, DoubleZero is creating a dedicated "N1" network—a decentralized, high-performance fiber-optic infrastructure designed specifically for blockchain validators and other high-performance distributed systems. By operating at the physical layer, DoubleZero aims to provide the foundational internet upgrade that blockchains need to achieve speeds comparable to traditional financial systems like NASDAQ.
The project, born from the Solana ecosystem, has quickly gained significant traction. Its recent mainnet launch, coupled with a landmark regulatory clearance from the U.S. Securities and Exchange Commission (SEC) and listings on major exchanges like Bybit, positions DoubleZero as one of the most intriguing infrastructure plays in crypto space.

What Is DoubleZero (2Z)?

DoubleZero is a decentralized framework that builds and operates a permissionless, low-latency fiber network—a new physical layer for the internet tailored to the needs of blockchain validators. It is not a blockchain itself but rather a foundational infrastructure that existing blockchains can utilize. The core idea is simple yet powerful: while software optimizations are essential, they eventually hit a wall imposed by the physical constraints of the public internet. DoubleZero tackles these constraints head-on.
The protocol enables the creation of a network where data travels through independently managed, dedicated fiber links between nodes, bypassing the congested and unpredictable routes of the public internet. This "decentralized physical infrastructure network" (DePIN) is supported and coordinated by its native token, 2Z, which is built on the Solana blockchain. DoubleZero's mission is encapsulated in its core principle: "Increase Bandwidth, Reduce Latency" (IBRL), addressing the fundamental physical limitations that hinder blockchain performance.

Key Features of DoubleZero (2Z)

DoubleZero's value proposition is built on several key technological and operational features that distinguish it from purely software-based scaling solutions.
Firstly, its dedicated fiber-optic network is its cornerstone. By using a physical infrastructure of dedicated fiber links,DoubleZero minimizes the data packet travel time between validators. This direct data transmission reduces consensus latency and enhances the performance of validators distributed across different geographical locations. Think of it as replacing shared, public roads with a private, high-speed highway system exclusively for blockchain data.
Secondly, the protocol is designed to be protocol-agnostic. Although its initial focus is on the Solana ecosystem, its architecture is built to support any high-speed blockchain. This positions DoubleZero as a universal infrastructure layer that can benefit the entire industry, not just a single chain.
Another critical feature is its decentralized and permissionless nature. The network is composed of fiber links and edge-filtering hardware operated by independent participants, creating a robust and resilient system without a single point of failure. This aligns with the core ethos of blockchain while providing carrier-grade reliability.
Finally, DoubleZero has achieved a significant regulatory milestone. In late September 2025, the project secured a No-Action Letter from the U.S. SEC, which confirmed that the 2Z token does not qualify as a security under its specific distribution model. This provides unprecedented regulatory clarity and sets a precedent for other DePIN projects.

How Does DoubleZero (2Z) Work?

DoubleZero functions by creating a marketplace and a coordination layer for network resources. Its operation can be understood by examining the roles within its ecosystem and the flow of data and value.
The network relies on providers who contribute physical resources. These participants operate the fiber-optic links and the necessary hardware that form the backbone of the DoubleZero network. In return for providing and maintaining this critical infrastructure, they are rewarded with 2Z tokens. The reward system is designed to be fair and is calculated using a concept from game theory called the Shapley value, which aims to distribute rewards based on the actual impact of each contributor's work on the network's performance.
On the other side are the users, primarily blockchain validators, RPC providers, and MEV searchers. These entities use the DoubleZero network to transmit data more quickly and securely than is possible over the public internet. To access this high-performance connection, they pay usage fees in 2Z tokens. This creates a circular economy where demand from users funds the supply of infrastructure from providers.
This entire process is facilitated by the 2Z token, which acts as the medium of exchange, the reward mechanism, and a tool for securing the network through staking. The token's utility is directly tied to the consumption and provision of a real-world service—high-speed data transmission.

Fundraising Info About DoubleZero (2Z)

DoubleZero has demonstrated a strong ability to attract capital from leading investors in the crypto venture space, validating its thesis and potential. In a token round conducted in March 2025, the DoubleZero Foundation successfully raised $28 million at a valuation of $400 million.
This funding round was co-led by two of the most prominent venture capital firms in the crypto industry: Multicoin Capital and Dragonfly Capital. Their participation signals strong institutional belief in the project's vision and team. The round also saw participation from other investment firms, including MH-Ventures and GSR, further broadening its support base .
The substantial funding provides DoubleZero with a significant war chest to continue its research and development, expand its physical network footprint, and foster ecosystem growth. This financial backing is a crucial asset for a project that involves the capital-intensive task of building out physical infrastructure.

Tokenomics of DoubleZero (2Z)

The 2Z token is the economic lifeblood of the DoubleZero network, with its design centered around three core functions: Utility, Efficiency, and Security.
The token has a total supply of 10 billion. Its utility is demonstrated as the primary medium of exchange; users pay 2Z to access the high-performance network, and providers earn 2Z for supplying infrastructure. This creates a direct link between token demand and network usage.
For efficiency, the tokenomics model employs an inflationary mechanism to fund the ongoing rewards for network contributors. This continuous emission ensures that new providers can be incentivized to join and support the network's growth. However, to maintain balance and prevent abuse, the model also incorporates a token burn mechanism. This burn function helps to counterbalance inflation and remove tokens from circulation, which can help maintain the token's value over the long term as network usage increases.
In terms of security, staking plays a key role. Participants can stake 2Z tokens, which likely helps to guarantee the quality of the links they provide and ensures good behavior within the network. This staking mechanism adds a layer of cryptoeconomic security to the physical infrastructure.

Why You Should Pay Attention to 2Z Recently?

The crypto world moves fast, and DoubleZero's been lighting up the feeds for all the right reasons. October 2, 2025, the team flipped the switch on mainnet-beta, shifting from testnets to live action with token functionality fully integrated. It's a significant development because early adopters, including validators from Solana and beyond, are already staking SOL equivalents to tap into the network's benefits, with reports indicating that nearly 22% of staked SOL is being integrated immediately.

Additionally, the U.S. SEC issued a rare no-action letter just days ago, effectively stating that 2Z isn't a security and clearing the project's path for distribution. This isn't your everyday approval; it's a win for DePIN (decentralized physical infrastructure networks) projects, which are pushing boundaries on hardware incentives.

Whispers of multicast upgrades for cluster chats wrapped up last quarter, paving the way for even tighter validator coordination. If you're eyeing tokens that bridge real-world bandwidth with blockchain magic, DoubleZero's hot streak from testnet wins to regulatory thumbs-up makes it a conversation starter. Validators worldwide are buzzing about ditching jitter for jitter-free ops, and with prices swinging from a low of $0.67 to highs near $1.40 today alone, the momentum's real.

Is DoubleZero (2Z) Worth Buying?

Evaluating the investment potential of 2Z requires a balanced consideration of its strengths and the inherent risks.Several compelling factors support a bullish case. Its unique physical infrastructure value propositionaddresses a clear and growing bottleneck in the blockchain industry, giving it a potential first-mover advantage in the N1 network space. The landmark SEC No-Action Letter provides a significant regulatory moat and reduces a major uncertainty that plagues many crypto projects.
Furthermore, substantial real-world adoption is already underway, with over 300 blockchain validator nodes using the network and a remarkable 22% of staked SOL already connected to it. This includes major industry players like Jump Crypto and Galaxy, indicating strong institutional confidence. The strong backing from top-tier VCsand increasing exchange listings on platforms like CoinCatch and its addition to Coinbase's listing roadmap enhance its liquidity and accessibility, reinforcing its market position.
However, potential investors must also weigh the risks. The project operates in a highly competitive and complex landscape, competing not only wi

Conclusion

DoubleZero represents a paradigm shift in the quest for blockchain scalability. By moving beyond software and re-architecting the very physical layer that blockchains run on, it offers a novel and powerful solution to a critical industry-wide problem. Its dedicated fiber network, backed by a well-designed token economy and significant regulatory clarity, positions it as a fundamental infrastructure project for the next era of blockchain adoption.
While the project is still in its early stages, the impressive early adoption by validators and strong support from venture capital firms are positive indicators of its potential. For the broader crypto ecosystem, DoubleZero is a project to watch closely. If it succeeds in its mission to "Increase Bandwidth, Reduce Latency," it could become the invisible yet indispensable backbone that empowers blockchains to finally rival the speed and efficiency of traditional financial systems. As with any investment in this dynamic space, due diligence is paramount, but DoubleZero's foundational approach makes it a uniquely compelling player in the DePIN and broader crypto landscape.

Reference:

Malbec Labs. (n.d.). Welcome to DoubleZero. https://docs.malbeclabs.com
Federa, A., McConnell, A., & Ward, M. (2024, December 2). DoubleZero Protocol: Accelerating communication in high-performance distributed systems to increase bandwidth and reduce latency [White paper]. https://doublezero.xyz/whitepaper.pdf
Malbec Labs. (n.d.). DoubleZero Token Economics. https://doublezero.xyz/tokeneconomics
CoinCatch Team
Disclaimer:
Digital asset prices carry high market risk and price volatility. You should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance. CoinCatch is not responsible for any losses that may occur. This article should not be considered financial advice.
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