SkyKnet

KnexCoin + AyeDEX + Bitcoin-Backed Stable Tokens

Merchant-driven price discovery on a feeless, sub-second Layer 1 DAG.

369.69MMax KNEX Supply

0 FEESTransaction Cost

<1sFinality

10K+ TPSThroughput

01 / 10

DLT — CONFIDENTIAL

The Problem

Crypto price discovery is broken.
Speculation dominates. Commerce is absent.

Merchants hate volatility + fees Payment networks charge 2-4%. Crypto prices swing 20% intraday. Merchants can't plan around either.

DEX prices are manipulated Low-liquidity pairs let whales move prices. Wash trading inflates volume. Price feeds are gameable.

No real-world price anchor Without commerce data, "value" is narrative. Nobody answers: "What can 1 KNEX actually buy?"

Market Gap

$300B stablecoin market. 500M+ crypto users. Zero merchant-driven exchanges. The price is set by traders, not buyers.

Our Thesis

A currency's price should reflect what it buys, not what it trades for. Commerce-weighted price discovery makes KNEX value measurable and auditable.

02 / 10

DLT — CONFIDENTIAL

The Solution

AyeDEX: The world's first commerce-weighted exchange.

Merchants set prices Coffee $4.99 = 0.40 KNEX. Every product listing is a sell-side market signal.

Customers buy KnexPay tap-to-pay. Each purchase is a buy-side market event on the live feed.

Commerce anchors the price Volume-weighted, recency-weighted, merchant-tier-weighted reference price.

SPOT = Last transaction price (any type) REF = Commerce-weighted rolling avg (last 100 merchant txns) SPEC = Order book side (0.1-0.5% fee, lower weight)

Dual Price Feed

Feed	Source	Weight
Reference	Merchant commerce	70%
Spot	Latest transaction	20%
Speculative	Order book trades	10%

Anti-Manipulation

Anomaly detection + attenuation (not censorship). Bad actors' weight reduced — market stays permissionless.

03 / 10

DLT — CONFIDENTIAL

Layer 1 Foundation

KnexCoin: DAG Block-Lattice + Proof-of-Bandwidth

Block-Lattice DAG: Alice: ──[send]──[receive]──[send]──→ Bob: ──[receive]──[send]──→ Carol: ──[receive]──[receive]──[send]──→ Each account = independent chain. Zero contention. Parallel throughput. Sub-second finality.

Cryptographic Stack

Component	Algorithm
Signatures	Ed25519 (RFC 8032)
Hashing	SHA-256 + Blake2b-256
Addresses	Base62, 50 chars (case-sensitive)
HD Derivation	BIP39 + PBKDF2 + HMAC-SHA512

Proof-of-Bandwidth Consensus

Validators prove real network infrastructure contribution.

VRF-selected challengers 7 random validators issue bandwidth challenges

Peer attestation Measured throughput + latency + confidence scores

VDF proof Verifiable Delay Function prevents pre-computation

100 MbpsMin Validator Bandwidth

10K KNEXMin Validator Stake

04 / 10

DLT — CONFIDENTIAL

Tokenomics

369,690,000 KNEX — Sacred Supply (3+6+9+6+9 = 33)

Allocation	Amount	%
PoB Validator Emission	300,000,000	81.15%
Genesis Allocation	69,690,000	18.85%

Genesis Breakdown

Fund	Amount	%
Development	20,907,000	30%
Foundation Treasury	17,422,500	25%
Ecosystem Growth	17,422,500	25%
Community & Bootstrap	13,938,000	20%

Emission Schedule

Era	Years	Emission
Era 1	0-3	Base rate
Era 2	3-6	50% (1st halving)
Era 3	6-9	25% (2nd halving)
Era 4	9-12	12.5% (3rd halving)
Tail	30+	0.1%/year perpetual

3 YRHalving Cycle

0.1%Tail Emission

0Coin Burns (Ever)

7Decimal Places

05 / 10

DLT — CONFIDENTIAL

Network Activity Index

Counter-Cyclical Rewards: More in bear, less in bull.

NAI adjusts validator rewards inversely to network activity. Keeps validators online when it matters most — during low-activity periods.

Damping Factor

TARGET = 90-day rolling average NAI score CURRENT = Latest epoch NAI score Damping = clamp(TARGET / CURRENT, 0.25, 3.0) Bear market → activity LOW → damping 3.0× → 300% rewards Bull market → activity HIGH → damping 0.25× → 25% rewards Neutral → damping 1.0× → standard rewards

Activity Metrics (per epoch = 1 hour)

Metric	Weight	Baseline
Transaction Volume	40%	1M KNEX
DEX Volume (D-accounts)	30%	500K KNEX
Active Accounts	20%	100
Active Validators	10%	50

90 DAYRolling Window

0 ORACLESExternal Dependencies

0.25×–3.0×Damping Range

D-PREFIXOn-chain DEX Detection

06 / 10

DLT — CONFIDENTIAL

Bitcoin-Backed Stablecoins

Built-in Stable Tokens: USDX, EURX, GBPX, COPX & more.

Bitcoin-backed stablecoins on KnexCoin L1 — no banks, no custodians, no freezing. Users deposit BTC as over-collateralized reserves (200%+) and mint stable tokens. Collateral is transparent, auditable, and appreciating.

Why Bitcoin-Backed?

Advantage	Detail
No bank freeze risk	BTC on-chain — no Tether-style seizure
Transparent reserves	Anyone verifies collateral in real-time
Appreciating backing	BTC trends up → vaults get more secure
No counterparty risk	No SVB, no depeg, no bank run

Collateral & Liquidation

Threshold	Action
200%+	Healthy vault — fully collateralized
150%	Warning — add collateral or reduce debt
130%	Partial liquidation begins
115%	Full liquidation to restore peg
<100%	KNEX Stability Pool absorbs bad debt

$300B Market. Zero BTC-Backed at Scale.

87% of stablecoins rely on banks. DAI proved crypto-backing works ($5B). Nobody has done it with Bitcoin at scale. USDX fills that gap — feeless, sub-second, fully on-chain.

200%+BTC Collateral Ratio

0 FEESToken Transfers

10Reserved Currencies

07 / 10

DLT — CONFIDENTIAL

Ecosystem

Full-stack merchant commerce loop — built, not planned.

Merchant sets KNEX price → Customer taps NFC / scans QR → KnexPay processes payment (0 fees, <1s) → Trade becomes price signal on AyeDEX → Reference feed updates → Market knows "what KNEX buys"

Infrastructure (Built)

Component	Tech	Status
Rust Node	Rust + RocksDB	Live
KnexPay PWA	Progressive Web App	Live
NFC Cards	NTAG 424 DNA + AES-128	Live
KnexKeys	Offline keygen + HD wallet	Live
Block Explorer	Knexplorer v2.0	Live
Faucet	Cloudflare Workers	Live
AyeDEX	SvelteKit + Vite	Beta

KnexPay Wallet

NFC tap-to-payNTAG 424 DNA hardware cards

QR scan paymentsCamera-based instant payments

PIN + BiometricFace ID / Touch ID secured

Offline capableService Worker + PWA installable

Security

SPVT — Stake-Proportional Validation Tiers. Larger transactions require more validator signatures (1-7 validators based on amount).

Quantum roadmap: FALCON-512 + Dilithium-65 + Kyber-768 (NIST FIPS)

08 / 10

DLT — CONFIDENTIAL

Execution

Roadmap to a live commerce-weighted price feed.

Phase 1 — Testnet (Q2 2026)

Merchant onboarding portalRegistration, KYC, API credentials

KnexPay betaNFC + QR payments on testnet

Basic price feedSimulated commerce + initial reference price

Phase 2 — Mainnet Alpha (Q3 2026)

Real merchant transactionsFirst 100 anchor merchants live

Dual feed liveCommerce-weighted reference + spot price

Stable token launchUSDX, EURX, GBPX available for settlement

Phase 3 — Full Launch (Q4 2026)

3-tier merchant systemBasic / Verified / Enterprise with weighted influence

Public anomaly dashboardTransparent market integrity monitoring

B2B commerceInvoicing, bulk payments, category API

1,000+ merchantsTarget milestone for credible reference price

Future (2027+)

P2P marketplace • Escrow services • Cross-chain bridge • Post-quantum migration • Governance DAO

09 / 10

DLT — CONFIDENTIAL

The Ask

Partner with the merchant network that sets the price.

Partners We Want

Anchor Merchants High-volume retailers in food, retail, services, electronics. First movers establish pricing benchmarks and earn highest feed influence.

POS / Hardware Integrators NFC terminal rollouts, KnexCard deployment, merchant onboarding infrastructure.

Liquidity Providers Provide depth on the speculative order book. Arbitrage keeps spot ≈ reference. LPs earn 0.1-0.5% on trades.

Strategic Investors Crypto-native funds and fintech partners aligned with merchant-first thesis.

Contact

SkyKnet

distributedledgertechnologies.com
david@skyknet.com

knexcoins.comKnexCoin

ayedex.comAyeDEX Exchange

knexpay.comKnexPay Wallet

GitHubOpen Source

Founded 2020 • @DLTBlockchain
Next step: Schedule a merchant onboarding + pilot geography plan.

10 / 10

DLT — CONFIDENTIAL

KnexCoin + AyeDEX + Bitcoin-Backed Stable Tokens

Crypto price discovery is broken.Speculation dominates. Commerce is absent.

Market Gap

Our Thesis

AyeDEX: The world's first commerce-weighted exchange.

Dual Price Feed

Anti-Manipulation

KnexCoin: DAG Block-Lattice + Proof-of-Bandwidth

Cryptographic Stack

Proof-of-Bandwidth Consensus

369,690,000 KNEX — Sacred Supply (3+6+9+6+9 = 33)

Genesis Breakdown

Emission Schedule

Counter-Cyclical Rewards: More in bear, less in bull.

Damping Factor

Activity Metrics (per epoch = 1 hour)

Built-in Stable Tokens: USDX, EURX, GBPX, COPX & more.

Why Bitcoin-Backed?

Collateral & Liquidation

$300B Market. Zero BTC-Backed at Scale.

Full-stack merchant commerce loop — built, not planned.

Infrastructure (Built)

KnexPay Wallet

Security

Roadmap to a live commerce-weighted price feed.

Phase 1 — Testnet (Q2 2026)

Phase 2 — Mainnet Alpha (Q3 2026)

Phase 3 — Full Launch (Q4 2026)

Future (2027+)

Partner with the merchant network that sets the price.

Partners We Want

SkyKnet

Crypto price discovery is broken.
Speculation dominates. Commerce is absent.