How ZKFund Works

ZKFund is designed as a layered system, where privacy is enforced by architecture rather than by obfuscation. Each layer has a clear responsibility, and every action is validated through cryptographic proof instead of public disclosure.

At a high level, ZKFund operates through four core layers.

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1. Identity Layer — Authorization Without Identity

The Identity Layer defines who is allowed to act, without revealing who they are.

• Participants receive a zkID or equivalent membership credential.

• Roles such as Founder, Board, Signer, LP, Auditor are represented as provable attributes.

• When interacting with the system, users generate proofs that they:

  • Belong to a specific fund or DAO

  • Hold a specific role

  • Are authorized to perform an action

At no point does the system require:

• Public wallet addresses

• Doxxed identities

• Persistent identity linkage across actions

Authorization is enforced purely through zero-knowledge membership proofs.

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2. Governance Layer — Decisions Without Visibility

The Governance Layer handles proposals and voting.

• A proposal defines:

  • An action type (swap, withdraw, allocate, config change)

  • Governance rules (required roles, quorum, thresholds)

  • Execution constraints

• Proposal parameters can be partially or fully hidden.

Voting is performed using zero-knowledge voting proofs:

• Voters prove they are eligible

• Their vote choice and identity remain private

• Voting weight (token-based, role-based, or stake-based) is enforced inside the circuit

The system can enforce:

• Hidden quorum

• Hidden interim results

• Finalization without vote leakage

Only the final state—approved or rejected—is made public.

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3. Execution Layer — Enforcement Without Signatures

Once a proposal passes, execution moves to the Execution Layer.

Instead of visible multisig signatures:

• Each signer generates a ZK multisig proof

• The proof confirms:

  • Membership in the signer set

  • Approval of a specific proposal

• Signer identities and approval order remain private

Smart contracts verify:

• The number of valid proofs

• Threshold rules (e.g., 3-of-5)

• Proposal validity and expiration

Execution occurs only when cryptographic conditions are satisfied, not when identities are revealed.

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4. Settlement Layer — Results Without Traceability

The Settlement Layer handles asset movement and final state changes.

• Funds are managed through stealth treasuries and ZK Pools

• Transfers, swaps, and allocations are settled privately

• On-chain logs contain:

  • Proof receipts

  • Execution status

  • Minimal metadata

They do not contain:

• Sender or recipient addresses

• Balances or allocation ratios

• Execution paths

This ensures that even after execution, strategic and financial data remains confidential.

Design Philosophy

ZKFund is built on one core principle:

Validity should be public. Information should not.

Every decision and action is verifiable by anyone, while sensitive organizational and financial data remains private by default.