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.
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