Page cover

Governance, Security and Compliance

Governance Model

Merin adopts a dual-layer governance structure: Protocol DAO — responsible for protocol parameters, incentive distribution, and oracle selection;

Resolution DAO — focused on event dispute arbitration and result adjudication.

All governance voting is conducted through the zk-Gov module: Voting content is encrypted to protect privacy;

Results are verified through zk-SNARK;

Proposal execution is triggered by multi-signature governance contracts (based on Gnosis Safe compatible architecture).


Security Framework

Merin’s security system consists of three layers: (1) Contract Security All core contracts are audited by third parties (CertiK, OpenZeppelin, or Trail of Bits);

Adopts an upgradable proxy architecture and sets governance delay protection.

(2) Data Security All oracle data are hash-signed and verified through ZK consistency;

Prevents malicious nodes from submitting forged data.

(3) Economic Security Ensures economic constraints of oracles and voting nodes through staking and slashing mechanisms;

Simulates attack scenarios to evaluate network robustness (Adversarial Simulation Framework).


Compliance Architecture

Merin proposes a Modular Compliance Layer: Supports customized KYC/AML modules for different jurisdictions;

Institutional users can choose to enable the “compliance market template,” which automatically activates regulatory log recording;

Retail users can conduct predictions on the anonymous trading layer (through zk identity proof) without revealing personal information.

This structure realizes a regulatory-compatible model of “verifiable identity without privacy exposure.”


Transparency and Audit

All market events and fund flows are traceable on-chain;

The zk-Audit module generates on-chain audit proofs monthly;

Governance voting, oracle behavior, and settlement logs can all be re-verified by third parties.


Security Cooperation Ecosystem

Merin will establish long-term security and audit cooperation relationships with the following partners: Chainlink & UMA — oracle standards and verification interfaces;

EigenLayer — data verification and decentralized restaking security;

OpenZeppelin Defender — real-time monitoring and emergency response;

LayerZero / Axelar — cross-chain security and message transmission assurance.


Long-Term Sustainability

Merin’s security philosophy is based on three dimensions: Technical Anti-fragility: The system strengthens itself through AI and feedback learning amid volatility;

Economic Resilience: Balances inflation through deflationary burning and long-term staking;

Governance Adaptability: The DAO continuously iterates protocol rules to ensure the long-term health of the ecosystem.

Last updated