What is the Newton Protocol?

(Source: blog.newt.foundation)

The Newton Protocol (NEWT) is dedicated to addressing the core issues of lack of trust in automation and complexity of cross-chain operations in the crypto world. It is jointly constructed by the Magic team and the Magic Newton Foundation. Newton is not just a set of automated infrastructure; it is a brand new decentralized economic protocol that allows users to automatically execute tasks through smart agents in a multi-chain architecture, with each step of the operation being cryptographically verifiable and traceable.

The current bottleneck of Web3 and Newton's solution

Despite Magic significantly lowering the entry barrier through its embedded wallet, users' operations on the blockchain are still fragmented, manual, and high-risk, especially when it comes to cross-chain transactions, staking management, and asset rebalancing, which often deter general users. Additionally, many automated solutions on the market rely on Telegram bots or centralized tools, severely lacking in security and transparency.

The Newton Protocol is designed to address these pain points. It combines zero-knowledge proofs (ZKP) with trusted execution environments (TEE) to achieve verifiable automation without the need to trust third parties. From cross-chain strategies, trade execution, and rebalancing to AI-driven strategies, everything can be handled by agents while ensuring that each step remains within the user's control.

Core functions and design philosophy of the protocol

The design of the Newton Protocol is based on three core principles:

1. Scoped Autonomy
   Users set the behavior boundaries of agents through zkPermissions, including funding limits, areas of activity, and operational conditions. The system enforces these restrictions to prevent abuse of power.

2. Verifiable Integrity
   All actions performed by agents will generate ZKP proofs, ensuring that their behavior is consistent with user authorization. This layer of assurance is particularly critical, especially when it involves AI reasoning, off-chain data, or high-value transactions.

3. Earned Reputation
   Each agent will accumulate reputation points and will suffer economic penalties when violating rules, creating a stable structure that coexists with incentives and punishments.

This architecture not only enhances security and transparency but also creates a win-win decentralized agent market for both users and developers.

Developer and Agent Architecture

Newton provides a Software Development Kit (SDK) to help developers build Agents and convert off-chain services into verifiable agents. Developers can define:

• Input and Output Format
• Execution cost estimate
• certificate verification mechanism

At the same time, agents can register their proxy with the Model Registry on the protocol, allowing operators to register and provide execution services. This architecture significantly lowers the entry barrier and encourages outstanding developers to create more powerful automation strategies.

$NEWT tokenomics

The native token of the Newton Protocol, $NEWT, is the core of the entire platform's operation, with a total supply of 1 billion tokens and an initial circulating supply of 215 million tokens (i.e., 21.5%). Its distribution structure is as follows:

Community-oriented distribution: 60%

• Onchain Ecosystem Development Fund
• Onchain Ecosystem Growth Fund
• Onchain Foundation Vault

These three are established for ecology and infrastructure, with a 48-month linear unlock, of which 20% will be unlocked at TGE.

Internal Orientation Allocation: 40%

• Core Contributors: 18.5%
• Early Backers: 16.5%
• Magic Labs: 5%

(Source: blog.newt.foundation)

All three have a 12-month lock-up period, after which they will be released linearly over 36 months. All unlocked tokens are not allowed to circulate in the secondary market.

Token Use

1. Staking and Network Security
   $NEWT will be used for the delegated Proof of Stake (dPoS) consensus mechanism of the protocol, allowing token holders to delegate their tokens to validators and earn staking rewards.

2. transaction fee
   When users issue operation instructions or initiate transactions through agents, they will use $NEWT as the gas fee. Newton will implement a mechanism similar to EIP-1559 to handle transaction ordering and fees.

3. Model Registration and Service
   Developers need to pay $NEWT to register their proxy models in the Model Registry. Once the model is adopted by an operator, developers can earn a profit share based on usage.

4. governance function
   Token holders can participate in protocol governance, proposing and voting on key decisions such as model audits, fee adjustments, and the use of ecological development funds.

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Summary

The verifiable automation proposed by the Newton Protocol not only fills the trust gap in the existing Web3 automation but also establishes a solid trust foundation for an AI-driven decentralized economy, allowing users to express their goals and enabling agents to execute them safely. With the deep integration of AI and blockchain, the Newton Protocol will become a key infrastructure supporting the new era of decentralized finance, agent business, and on-chain automation.