Kusama 2025: Private DAOs, regional chains, LIP and more

A quick recap before my Kusama 2025 ToDo list :wink:
Virto is one of the very few teams building exclusively on Kusama with the help of its treasury, I started Virto with the idea of implementing the Local Incentives Protocol, LIP defines a way for local communities to receive “contributions” from commercial communities every time anyone pays for a product or service. Contributions are like a tax that incentivizes the creation of the local DAOs empowered to improve local welfare.

I imagine LIP as an experiment part of the yet bigger experiment of re-imagining world societies built as a swarm of intelligent/integrated decentralized autonomous societies(IDEAS?:thinking:) that move wealth around efficiently with dynamic tax policies changing by the minute and specific goals in mind ram :stuck_out_tongue_winking_eye:

With all this anarchist long term experimentation in mind what better place to build than the most decentralized resilient cypherpunk corner of the web3 :bird:
Virto felt right at home in Kusama where we’ve been slowly building the many pieces of this puzzle…

malcolm-in-the-middle-fixing-light-bulb

client libraries, payment system, a DAO Hub, token-less economics and more goodies that make UX great on the Kreivo parachain.

A sustainable success case in Kusama?

It’s great to build for the long term but our very down-to-earth team knows we need intermediate deliverables that bring utility today, to the regular folks we want this technology to benefit. Virto is enabling entrepreneurs not familiar with blockchain technology to set up their organization in minutes and provide them with the tools they need to iterate fast to achieve product market fit at a fraction of the cost.

We are glad to share that as of now Virto is sustainable(*in a poor way), we closed 2024 and started 2025 with brave beta testers that already see benefit in the technology and are willing to pay for the value it provides in its early state.
We’ve got a pilot of an on&off-ramps operation moving 200K+ USD/month, the yield bearing Decent stable coin(dUSD) issued by the regulated stable coin provider Brale and managed by the Decent Partners DAO, the Neotec grant recipient Kunveno building a technology for freelancers and taking with EU regulators about DAOs, some regional communities in the ecosystem looking to establish their own OpenGov enabled DAO and several more use cases we will be sharing over the course of 2025 that will enable us to keep evolving the protocol and attract even more real world use cases.

6 Likes

Regional parachains: a fast global payments network

In 2025, Virto will evolve the initial architecture of LIP to introduce regional parachains - specialized chains optimized for local transactions and everyday user interactions. The close geographical proximity of collators will allow us to optimize for fast block production for better UX allowing for example end users doing fast secure reversible dUSD payments in stores from their phone or smart watch without relying on Visa/Mastercard infrastructure.

Architecture Overview

  • Kreivo as the Governance Hub: Kreivo remains the central governance parachain where all DAO activities occur. It retains control over the root origins of regional chains, ensuring coordinated ecosystem development.
  • Regional Chain Operations:
    • Optimized for fast block production through geographical proximity of collators
    • Enables near-instant transactions for real-world use cases (e.g., point-of-sale payments)
    • Implements the Pass system for wallet-less transactions
    • Handles all end-user interactions, keeping Kreivo focused on DAO operations

Geographic Organization

  • Regions are defined using larger geographic cells than the original LIP communities
  • Each regional parachain acts as a super-DAO governed by its constituent communities
  • Regional chains can mint and manage smaller geo cells for local community registration
  • This hierarchical structure enables efficient coordination between regional and local governance

Membership and Access

  • Memberships continue to be minted on Kreivo
  • Users can transfer their memberships to their local regional chain
  • The membership NFT’s “gas tank” enables free transactions on the regional chain
  • Regional chains implement the Pass system for simplified user authentication

Governance Structure

  • Regional chains operate without local governance or sudo access
  • All governance actions occur through Kreivo via XCM
  • Communities within a region can participate in their regional chain’s governance through their DAO on Kreivo
3 Likes

Private DAOs with VOS

As Kusama positions itself as the privacy-focused canary network, we’re excited to advance this vision with VOS (Virto/Virtual Operating System) - a new privacy layer for Kreivo DAOs. Built on tech like Noir for zero-knowledge proofs and Matrix for encrypted messaging and data storage, VOS lets organizations vote and manage funds privately while staying decentralized. By 2025, Kusama-native DAOs will be able to handle sensitive operations and data without compromising on decentralization or compliance, strengthening the network’s commitment to privacy-first innovation.

Architecture Overview

  • Virtual Operating System Components:
    • WASI component runtime for portable computation
    • Noir program support for zero-knowledge proofs
    • Familiar ink!-like interface for both WASI and Noir programs
    • Matrix protocol integration for secure messaging and storage

Private Governance MVP

  • Zero-knowledge voting system:
    • Members cast votes privately using Noir contracts
    • ZK proofs enable anonymous vote verification
    • Kreivo updates referenda tallies based on verified proofs
    • Preserves voting power verification without revealing individual votes

Enhanced Privacy Features

  • Private Balance Management:
    • DAOs act as privacy-preserving token pools
    • Internal ledgers maintained off-chain in encrypted form
    • Cross-DAO transfers visible only at organization level
  • Secure Data Handling:
    • GDPR-compliant storage through Matrix integration
    • Encrypted messaging for sensitive DAO communications
    • Private state management separate from public blockchain

Future Integration with JAM

Looking further ahead, VOS’s ability to compile to PolkaVM and run “regular std programs”, it opens exciting possibilities for integration with JAM. As more DAO operations move to private contracts, VOS could evolve beyond its role as a Kreivo companion into a native JAM service, streamlining private organization management without the overhead of traditional Substrate runtimes.
We’re excited to develop these ideas together with the community - reach out on Matrix or join the Virto DAO to help shape the future of private, decentralized organizations :wink:

4 Likes