Secret Network
Networks+1 · Layer-1+1Low Volume
Question
Provide a concise narrative that clearly states each of (a)–(e) below.
Response
Public blockchains expose every balance, transaction input and contract state to anyone who reads the chain, which rules out applications that handle sensitive financial, identity or business data. Secret Network addresses this by running smart contracts over encrypted inputs, encrypted outputs and encrypted state, so developers can build private-by-default applications on a programmable Layer 1 while keeping SCRT itself a public coin. (Source: Secret Network Introduction, Secret Network Overview)
Ongoing operations now run under the community continuance model that governance adopted in Proposal 365, which passed on 2026-08-19 after SCRT Labs announced that it would end official support for the network on September 1, 2026. Proposal 365 funds operations through a one-time mint of 1,079,000,000 SCRT split across a Foundation allocation, a core development allocation funded through the Foundation, research and development, an ecosystem fund, builder and relayer support, a validator program and a remediation pool for victims of the Axelar-Secret bridge exploit. The Foundation commits to publish payout reports on validator and core development distributions and annual reports on all expenditures. The 2026 roadmap reports that on-demand seed rotation, governance-based contract migration and governance approval of new validators were delivered in 2025, and it planned full CRON enablement for Q1 2026. (Source: , , , , )
Secret Network is a chain built with the Cosmos SDK and the Tendermint consensus engine, where validators reach delegated proof-of-stake consensus without ever accessing the data they process. It combines key management techniques, encryption schemes and Intel SGX Trusted Execution Environments to give smart contracts encrypted input, output and state, and users share their own data through viewing keys. Its Secret Contracts are a CosmWasm implementation written in Rust. The network launched its mainnet in February 2020 and traces back to the Enigma project, which ran its ENG token sale in September 2017. SCRT is the native coin that pays fees, secures consensus through staking and carries governance votes. (Source: Secret Network Overview, History, SGX.Fail)
SCRT pays transaction and computation fees, is staked with validators to secure the chain, earns inflation rewards for bonded holders and delegators, and carries governance weight at one bonded SCRT per vote. Bonded SCRT is subject to a 21-day unbonding period, and network inflation is currently fixed at 5% per year. (Source: The SCRT coin, Staking params, Mint params)
Control of the chain now rests on onchain governance by bonded SCRT and on the Secret Network Foundation as steward of the continuance allocations. SCRT Labs, the founding development company, exited on September 1, 2026, and its Proposal 360 to move SCRT to an ERC-20 on Arbitrum was rejected in July 2026. Governance then passed Proposal 365, which scheduled the v1.26.0 community continuance upgrade at block 26,790,327, pinning inflation at 5% and zeroing the foundation tax. The 2026 roadmap separately reports that contract migration and new validator admission had already moved under governance in 2025. The Foundation holds the largest single allocation from the mint and contracts the core development team, so the practical control model depends on both token votes and Foundation-led coordination of multisig signers, validators and developers. (Source: Proposal 360 onchain record, Proposal 365 onchain record, SCRT is moving to Arbitrum, Secret 3.0 Community Continuance of Secret Network L1, Secret Network 2026 Roadmap)
Question
For each existing entity: Labs/DevCo (e.g., Founder, CEO, CTO, COO), Foundation (e.g., President, Executive Director, CFO, COO), and DAO / onchain governance leadership (if applicable) list the: (a) full names, (b) official titles, (c) and prior experience of key team members. For any non-existent entity, explicitly mention it does not exist. External links may be included but they will not factor into the score.
Response
Full Name | Entity | Official Title | Prior Experience |
|---|---|---|---|
Alex Zaidelson (PRWeb SCRT Labs and SNF leadership release) | Labs/DevCo | Chief Executive Officer of SCRT Labs from August 2023 until SCRT Labs ended official support for Secret Network on September 1, 2026 (PRWeb SCRT Labs and SNF leadership release, SCRT is moving to Arbitrum, Secret Network 2026 Roadmap) | Former CEO of Beam with more than 20 years of executive leadership experience. (PRWeb SCRT Labs and SNF leadership release) |
Guy Zyskind (SCRT Labs) | Labs/DevCo | Founder of Enigma and SCRT Labs, who led SCRT Labs from 2020 to 2023 and then moved to a strategic advisory role (Guy Zyskind, PRWeb SCRT Labs and SNF leadership release) | MIT Media Lab alumnus with a PhD from MIT and a top 15 co-cited blockchain research author, who served as CEO, CTO, President and Director of Enigma MPC, Inc. and has founded Fhenix since 2023. (SCRT Labs, Guy Zyskind, Enigma MPC Form 10) |
Lisa Loud (Secret Network Foundation) | Foundation | Executive Director of the Secret Network Foundation since May 2023, and the leader of the continuance stewardship adopted in Proposal 365 (Secret Network Foundation, Secret 3.0 Community Continuance of Secret Network L1) | Co-founder of FLUIDEFI and a veteran of Apple, PayPal, BitMEX and ShapeShift, where she served as COO. (PRWeb SCRT Labs and SNF leadership release, Secret Speakers) |
Luke Bowman (Secret Speakers) | Foundation | Chief of Operations at the Secret Network Foundation (Secret Speakers) | More than eight years in Web3 research and education, with a background in marketing, financial analysis and business management. (Secret Speakers) |
Secret Network has no DAO legal entity and no named DAO leadership. Governance runs through the Cosmos SDK governance module, where any holder can submit a proposal and bonded SCRT votes directly or through validators. (Governance, Governance params) | DAO/Onchain Governance | The onchain governance process has no officers, council or executive titles. Proposals pass on the vote of bonded SCRT under the quorum, threshold and veto parameters set in the governance module. (Governance params) | Because no individuals hold DAO leadership roles, there is no leadership experience to report. The governance documentation and the onchain governance parameters name no DAO officeholders. (Governance) |
Question
Provide a structured description of the DAO's governance, powers, and economic rights. If a DAO does not exist, state so. Address the lettered items below. Even if there is no DAO, there must be an answer to (d).
Response
The DAO owns no IP. Secret Network has no DAO legal wrapper that could hold trademarks or copyrights, and the chain code, including the v1.26 upgrade that governance executed, sits in the scrtlabs GitHub organization controlled by SCRT Labs. In its July 2026 exit announcement, SCRT Labs said it would release the source code under a permissive open-source license, which gives the community use rights over the code without transferring ownership to the DAO. The governance documentation, the Proposal 365 onchain record and the SCRT Labs exit post contain no assignment of IP to token holders. (Source: v1.26 ECONOMICS.md, SCRT is moving to Arbitrum, Governance)
Onchain governance is the executor for software upgrades, parameter changes and community pool spending. A proposal needs a 5,000 SCRT deposit within a 7-day deposit period and then votes for 7 days. It passes when turnout reaches a 33.4% quorum of bonded SCRT, Yes votes exceed 50% of non-abstaining votes, and No with Veto stays below 33.4%. An expedited track runs for 1 day with a 12,500 SCRT deposit and a 66.7% threshold. Governance used this power in Proposal 365 to schedule the v1.26.0 community continuance upgrade at block 26,790,327, which minted 1,079,000,000 SCRT and pinned inflation at 5%. In the cron module, only a main governance proposal can add a schedule, while a schedule can be removed either by governance or by a security subDAO acting as the emergency removal authority. The 2026 roadmap reports that SCRT Labs moved the SNIP contracts it controlled to governance-based migration and that release 1.23 put new validator admission under governance approval. (Source: Governance params, Proposal 365 onchain record, v1.26 ECONOMICS.md, Mint params, Cron module overview, Cron module state, Secret Network 2026 Roadmap)
Bonding SCRT to a validator is the locking mechanism that confers governance rights. Bonded SCRT votes at one coin per vote, delegators inherit their validator's vote unless they vote themselves, and bonded holders earn a share of the 5% annual inflation. Unbonding takes 21 days, and the active set is capped at 80 validators. Bonded holders decide upgrades, parameter changes and community pool spending. They cannot direct the Foundation's use of its own allocation, compel exchange listings, or change the offchain contracts between the Foundation and the core development team. As of 2026-09-28, 420,125,937 SCRT was bonded. (Source: The SCRT coin, Governance, Staking params, Staking pool, Mint params)
Tokenholders have no right to protocol revenue or dividends. Their economic rights are staking rewards from inflation and fees, and the collective right to spend the community pool through governance proposals. The distribution parameters set both community_tax and secret_foundation_tax to 0, so no inflation flows into the community pool or to the Foundation, and the community pool held about 3.2 SCRT plus small IBC token balances as of 2026-09-28. The 1,079,000,000 SCRT minted in Proposal 365 went to named allocations held and administered outside the community pool, so holders have no direct claim on those treasuries. (Source: Distribution params, Community pool, Fee Distribution, v1.26 ECONOMICS.md)
No party can dissolve the DAO because it has no legal wrapper and the chain has no shutdown function. The decision whether the network continues is taken by governance vote. Proposal 360, which asked holders to move SCRT to an ERC-20 on Arbitrum by snapshot, was rejected in July 2026, and Proposal 365, which kept the Layer 1 running under community stewardship, passed in August 2026. SCRT Labs ending its support did not end the chain, which shows that withdrawal of the development company is not a dissolution mechanism. (Source: Proposal 360 onchain record, Proposal 365 onchain record, SCRT is moving to Arbitrum, Secret Network 2026 Roadmap)
Question
For the Primary Foundation do the following independently. If an entity does not exist, state that explicitly. Items (a)–(f) apply only if that entity exists; state explicitly that the entity doesn't exist.
Definitions: The primary Foundation and DevCo can be explained as those entities which are directly involved in the issuance of the native token at launch.
Response
The Secret Network Foundation is an entity registered in the Cayman Islands, at Governors Square, 23 Lime Tree Bay Avenue, Grand Cayman. Its forum formation update records that the Cayman Foundation was approved with a formation date of July 10, 2023, and that funds were to transfer to it from Secret Foundation Inc. That predecessor was structured as a US C-Corp from its founding in 2020 by its founder and CEO after he left Enigma, and the network documentation describes the Foundation as a private company being migrated to a Cayman non-profit organization. (Source: Secret Network Foundation, Update on Secret Foundation Formation, Secret Foundation Update and Disclosure, Secret Foundation)
The Foundation does not own the network's core codebase, which sits in the scrtlabs GitHub organization, and no trademark or subsidiary is attributed to it in the Foundation about page, the formation update or the continuance proposal. Under Proposal 365, the new core development team is a separate entity that contracts with the Foundation and is funded through the Foundation's allocations, rather than a Foundation subsidiary. (Source: Secret Network Foundation, Update on Secret Foundation Formation, Secret 3.0 Community Continuance of Secret Network L1, v1.26 ECONOMICS.md)
The Foundation has no special vote in governance and participates only through the SCRT it stakes. Its power sits in treasury administration. Under Proposal 365 it stewards the 299,000,000 SCRT foundation allocation, directs core development funding through the 299,000,000 SCRT core development allocation, and administers validator and core development payouts, on which it commits to publish payout reports and annual expenditure reports. The distribution module lists secret16sw5ypfmdh2grp3vsxz7yzmt8vs79p8syzap23 as the secret_foundation_address, and the foundation tax on inflation is set to 0, so the Foundation receives no programmatic share of block rewards. Changes to reward parameters remain with governance. (Source: Secret 3.0 Community Continuance of Secret Network L1, v1.26 ECONOMICS.md, Distribution params)
The Foundation holds no equity in, and has no control rights over, SCRT Labs or its legal entity Enigma MPC, Inc., whose owners are Guy Zyskind and Alex Pentland according to Enigma's SEC registration. SCRT Labs ended its official support on September 1, 2026. The Foundation's influence now runs over the new core development team, which contracts with the Foundation and works to an annual roadmap the Foundation sets, with funding drawn from the core development allocation. (Source: Enigma MPC Form 10, SCRT is moving to Arbitrum, Secret 3.0 Community Continuance of Secret Network L1, Secret Network 2026 Roadmap)
The Foundation holds no protocol-level pause or upgrade authority. Software upgrades and parameter changes execute only through governance proposals under the 33.4% quorum, 50% threshold and 33.4% veto rules. Its onchain role is the secret_foundation_address in the distribution module, which currently receives nothing because the foundation tax is 0. The continuance proposal commits to hold the largest treasury funds in secure wallets and smaller operating amounts in hardware wallets, and it names multisig and upgrade signers as participants the plan relies on, but the forum post names no signers and gives only an indicative threshold of about 7 of roughly 16 signers, to be confirmed, while the v1.26 economics file and the Foundation about page give neither. (Source: Governance params, Distribution params, Secret 3.0 Community Continuance of Secret Network L1, v1.26 ECONOMICS.md)
The governance-approved mechanism directing tokens to the Foundation is the v1.26 foundation allocation of 299,000,000 SCRT, with 10% liquid at execution and the rest vesting linearly over 60 months after a 6-month cliff. The Foundation also routes the 299,000,000 SCRT core development allocation to its contracted development team on the same schedule. The earlier programmatic flow, a foundation tax of 15% of inflation described in 2020, is now set to 0. The predecessor Secret Foundation Inc. paid its founder a $2.625M dividend in December 2021, equal to 375,000 vested SCRT at a $7 OTC price, after foundation staff tokens vested on cliff and quarterly schedules from June 1, 2020. (Source: v1.26 ECONOMICS.md, Distribution params, Secret Network Tokenomics and Ecosystem Pool, Secret Foundation Update and Disclosure)
Question
For the Primary DevCo do the following independently. If an entity does not exist, state that explicitly. Items (a)–(f) apply only if that entity exists; state explicitly that the entity doesn't exist.
Definitions: The primary Foundation and DevCo can be explained as those entities which are directly involved in the issuance of the native token at launch.
Response
SCRT Labs is the trade name of Enigma MPC, Inc., a Delaware corporation that operates remotely without a headquarters and was formerly known simply as Enigma. Enigma's SEC filings list two subsidiaries, Enigma ENG International, a Cayman Islands company incorporated in 2017 that ran the ENG token sale, and Enigma Lab Ltd., an Israeli company formed in January 2018. SCRT Labs ended its official support for Secret Network on September 1, 2026. (Source: Enigma MPC Form 10-K, SCRT Labs, SCRT is moving to Arbitrum, Secret Network 2026 Roadmap)
SCRT Labs controls the scrtlabs GitHub organization, which hosts the SecretNetwork chain repository and the ics20-for-axelar bridge contract repository. In its July 2026 exit announcement, SCRT Labs said it would release the source code under a permissive open-source license. Research and development for Secret Network was performed by Gamma Research and Development Ltd., a Tel Aviv related party that worked under a non-recurring engineering agreement with Enigma. Enigma's Cayman subsidiary Enigma ENG International ran the 2017 ENG token sale, and its Israeli subsidiary Enigma Lab Ltd. was formed in January 2018. (Source: v1.26 ECONOMICS.md, Common Prefix Secret Network exploit analysis, SCRT is moving to Arbitrum, Enigma MPC Form 10, Enigma MPC Form 10-K)
SCRT Labs holds no governance power beyond the SCRT its affiliates stake. Before its exit it controlled the SNIP token contracts, which, according to the 2026 roadmap, SCRT Labs moved to governance-based migration in 2025, and the CW20-ICS20 bridge contract exploited in June 2026 was built from its scrtlabs ics20-for-axelar repository. Its Proposal 360 to move SCRT to Arbitrum failed. The v1.26 allocation contains no bucket for SCRT Labs, and SCRT Labs holds no role in administering the minted allocations, which the Foundation stewards. (Source: Secret Network 2026 Roadmap, Common Prefix Secret Network exploit analysis, Proposal 360 onchain record, v1.26 ECONOMICS.md)
SCRT Labs has no formal control over the Secret Network Foundation, which is a separate Cayman Islands entity. Its influence was historical and economic. Enigma co-managed the 20,000,000 SCRT Ecosystem Pool with the Secret Foundation from 2020, and the continuance thread records that SCRT Labs affiliates hold the largest stakes on the network, which gives them weight in the governance votes that bind the Foundation's operating framework. (Source: Secret Network Tokenomics and Ecosystem Pool, Secret 3.0 Community Continuance of Secret Network L1, Secret Network Foundation)
The CW20-ICS20 bridge contract secret1yxjmepvyl2c25vnt53cr2dpn8amknwausxee83, built from the scrtlabs ics20-for-axelar repository, was deployed on March 30, 2023 and migrated on March 5, 2026. SCRT Labs holds no protocol-level pause or upgrade authority, because chain upgrades execute only through governance proposals. The cron module's emergency removal authority is a security subDAO address, and the cron documentation does not assign that address to SCRT Labs. (Source: Common Prefix Secret Network exploit analysis, Governance params, Cron module overview, Cron module state)
No current mechanism directs protocol resources to SCRT Labs, its equityholders or its contributors. The v1.26 mint allocates nothing to SCRT Labs, the foundation tax is 0, and SCRT Labs ended its support on September 1, 2026. Its historical allocations were the 25,000,000 SCRT that Enigma swapped from ENG for its treasury and team, with team coins vesting over 2 to 4 years under employment and advisory agreements, and 10,000,000 SCRT that Enigma received from Gamma Research and Development Ltd., together with a right to buy up to 15,000,000 SCRT at 80% of fair market value. (Source: v1.26 ECONOMICS.md, Distribution params, SCRT is moving to Arbitrum, Secret Network Tokenomics and Ecosystem Pool, Enigma MPC Form 10, Secret Network 2026 Roadmap)
Question
Disclose launch and initial supply details in a single initial allocation schedule covering the token's launch.
Response
The Secret Network genesis block in February 2020 created an initial supply of 50,000,000 SCRT, distributed as agreed by the Secret Network community. ENG holders then swapped into SCRT by burning ENG, and Enigma burned 45,000,000 ENG to receive 45,000,000 SCRT, of which 25,000,000 went to its treasury and team and 20,000,000 to the Ecosystem Pool. Enigma stated that none of those 45,000,000 SCRT would enter circulating supply at the time of the swap. The launch record sets no separate locked amount for the 50,000,000 genesis coins, which carried no lockup beyond the 3-week unbonding that applies to any bonded SCRT. The 2026 continuance mint added 1,079,000,000 SCRT, of which 308,400,000 was liquid at execution and 770,600,000 locked under vesting. (Source: Enigma MPC Form 10-K, Enigma MPC Form 10-Q, Secret Network Tokenomics and Ecosystem Pool, v1.26 ECONOMICS.md)
At launch, SCRT went to genesis participants and validators through the 50,000,000 SCRT genesis supply, to ENG holders who swapped into SCRT, to Enigma's treasury and team for company operations and staff compensation, and to the Ecosystem Pool for grants and liquidity mining, co-managed by the Secret Foundation and Enigma. The January 2021 snapshot put the team at 21.18%, Enigma at 17.65% and the Ecosystem Pool at 11.76% of supply at inception. The 2026 continuance mint added eight categories. The foundation allocation funds Foundation stewardship. The core development allocation pays the contracted development team. The advisors allocation compensates advisors. The ecosystem fund finances ecosystem growth. Research and development funds technical research. Builder and relayer support pays application builders and IBC relayers. Remediation compensates victims of the Axelar-Secret bridge exploit. The validator program pays 30 validator seats. (Source: Enigma MPC Form 10-K, Secret Network Tokenomics and Ecosystem Pool, WITHDRAWN Proposal for Contribution of Ecosystem Pool to NPO, v1.26 ECONOMICS.md, Secret 3.0 Community Continuance of Secret Network L1)
SCRT had no fixed offering price at its February 2020 genesis. It was distributed at genesis and through a swap in which one ENG was burned for one SCRT, as Enigma's own swap of 45,000,000 ENG for 45,000,000 SCRT shows. The only fixed prices in the token's history are those of the 2017 ENG sale, where the crowd sale priced ENG at $0.60 and the SAFT presale priced it at an approximate 10% discount to that price. SCRT's market price was then set by exchange trading. For example, KuCoin announced a listing on May 24, 2022, and opened SCRT/USDT and SCRT/BTC trading on May 25, 2022. (Source: Enigma MPC Form 10-Q, Enigma MPC Form 10, Secret SCRT Gets Listed on KuCoin)
The native coin's ticker is SCRT, with the base onchain denomination uscrt. A privacy-preserving wrapped form trades as sSCRT. (Source: The SCRT coin, Total supply)
SCRT has no supply cap. Total supply was 1,450,865,943 SCRT on 2026-09-28, after the 1,079,000,000 SCRT continuance mint lifted a supply that the proposal put at 361,966,533 SCRT when it was drafted. The mint module fixes inflation at exactly 5% a year, with both the minimum and maximum inflation parameters set to 0.05. That replaces the variable regime described in the network documentation, which cited annual inflation rates of 9% and 7%. (Source: Total supply, Mint params, Secret 3.0 Community Continuance of Secret Network L1, The SCRT coin)
The 50,000,000 genesis coins and the coins ENG holders swapped carried no vesting. Enigma team coins vested over 2 to 4 years under individual employment or advisory agreements, and Secret Foundation staff tokens vested on cliff and quarterly schedules from June 1, 2020. The Ecosystem Pool was released only through grants and liquidity programs, and 15,600,000 SCRT remained in it when a forum proposal later sought its contribution to the Foundation's planned non-profit. The 2026 continuance mint vests on the schedules in the table below. Vested coins may be staked while they unlock. The last column marks whether each bucket is excluded from circulating supply today, with yes for an ongoing lock or vest, conditional for a trigger-based release and no for coins that are vested or unlocked.
Question
Address each of the following sub-items based on the project's airdrop status. If a sub-item does not apply to the project's situation, state that explicitly.
Response
Planned but not yet executed airdrop
Not applicable. Secret Network has no SCRT airdrop planned, and the v1.26 continuance allocation contains no airdrop bucket. (Source: v1.26 ECONOMICS.md)
Executed airdrop
Not applicable. No SCRT airdrop has been executed. The February 2022 airdrop that congested the network was a distribution of Shade Protocol's own token, not of SCRT. (Source: Secpk-Verifications Bloat)
No airdrop planned or conducted
Secret Network has never conducted an SCRT airdrop and has none planned. SCRT reached holders through the 50,000,000 SCRT genesis distribution, the one-for-one ENG to SCRT swap, staking inflation and, from 2026, the continuance allocations, and none of the tokenomics disclosures from 2020 to 2026 includes an airdrop category. (Source: Enigma MPC Form 10-K, , )
Question
Projects must disclose all material terms of market-making arrangements that affect token liquidity. If the project has no agreements or deals with market makers, state that explicitly; doing so earns full credit. For each market maker, include in a table:
If the project has no agreements or deals with market makers, state that explicitly; doing so earns full credit. If no native tokens were loaned or allocated to market makers, state that explicitly; cash/fiat retainers or fees are not required for this item.
Response
Question
Projects must disclose all material terms of centralized or decentralized exchange listings that affect token liquidity. For each listing, include in a table:
If the project has no agreements or deals with CEX or DEX, state that explicitly; doing so earns full credit; cash/fiat fee amounts are not required for this item.
Response
Question
Disclose all prior token sales by the Project — including fundraising rounds, any material OTC sales to investors, and any discounted market-maker sales. For each sale, provide:
If no prior sales occurred, state that explicitly (e.g., "No prior fundraising, OTC, or discounted MM sales have occurred.").
Response
Question
If any, list prior exploits or incidents that directly affected the token, token supply, tokenholder balances, token contract, minting controls, burn mechanics, or custody of token supply. This question is not asking about general protocol, application, or smart contract exploits unless the incident directly affected the native token itself.
If no prior incidents, state this explicitly (e.g., "No exploits affecting tokenholders or protocol funds as of YYYY-MM-DD").
Response
One incident is in scope. It is the CW20-ICS20 bridge contract exploit on Secret Network mainnet, which began on 2026-06-10 and was detected on 2026-06-17. It hit the Axelar route contract secret1yxjmepvyl2c25vnt53cr2dpn8amknwausxee83, code ID 2446, built from the scrtlabs ics20-for-axelar repository. The exploit drained bridged saTokens and did not touch native SCRT. It is disclosed here because governance responded with a 44,000,000 SCRT remediation allocation in the Proposal 365 mint, which added to SCRT supply. (Source: Common Prefix Secret Network exploit analysis, SCRT is moving to Arbitrum, v1.26 ECONOMICS.md)
An attacker created a fake IBC chain and channel and sent forged deposit packets to the CW20-ICS20 contract. The contract minted saTokens without checking the source channel, because its voucher denomination parsing and channel balance reduction checks had been commented out, which let the attacker mint unbacked bridged assets and redeem them for real ones. (Source: )
Question
Describe material risk factors across the three categories below. Each category includes prompts to address at a minimum.
(a) Regulatory, Legal & Tax Risks — Describe how evolving laws and regulations could affect the project by answering, at a minimum, questions like:
Impact of Regulatory Change on TGE and Listings: (If applicable) How could evolving or conflicting laws and regulations affect your ability to complete the TGE, deliver tokens to purchasers, and list or maintain the token on trading venues in key jurisdictions?
Entity-Level Regulatory Impact: (If applicable) How could regulatory or legal changes impact your core entities (Foundation, DevCo, DAO, affiliated service providers), including enforcement actions, licensing requirements, or forced changes to structure or operations?
Tokenholder Tax Treatment: (If applicable) What uncertainties exist around how tokenholders may be taxed, and make clear that tokenholders are responsible for understanding their own tax obligations?
Jurisdictional & User Access Restrictions: (If applicable) If the project restricts access for certain jurisdictions or user types (e.g., U.S. persons, sanctioned countries, retail vs. professional), what are those restrictions and what risks do they create for users and for the project?
(b) Protocol, Technology & Security Risks — Describe risks to network and contract reliability, correctness, and safety by answering, at a minimum, questions like:
Bugs and Design Flaws: (If applicable) What bugs, design flaws, or implementation errors could exist in your core protocol code, smart contracts, and any bridges, rollups, or oracles that you depend on, and how could these lead to loss of funds or disruption of the protocol?
Security Measures & Their Limitations: (If applicable) What security measures have you taken (audits, formal verification, bug bounties), and what types of failures might these measures still fail to detect or prevent?
(c) Token Economics, Unlocks & Incentive Risks — Describe how the token's economic design and supply schedule could affect holders by answering, at a minimum, questions like:
Critical Economic Assumptions: (If applicable) Which economic assumptions (e.g., staking yields, fee revenue, liquidity incentives, MEV capture, demand for blockspace) are critical for protocol security, utility, and governance, and what happens if those assumptions fail?
Question
Identify to the best of your ability the token's current deployments across chains, including project-issued deployments, project-endorsed representations, and, if possible, documented third-party wrapped or bridged representations.
For each entry, provide:
Multiple entries on the same chain are permitted.
Definition: A protocol-level asset is an asset whose balances and transfers are handled directly by the blockchain's core rules, rather than by a token smart contract. For protocol-level assets without a token contract address, enter "No contract address" and identify the asset and chain.
Response
This Token Transparency Filing is provided for general informational purposes only and does not verify or warrant the accuracy of individual answers.
The exploit drained about $4.67 million in saUSDT, saUSDC, saDAI, saWETH, saWBTC, saWBNB and sawstETH, and the attacker moved about 2,350 ETH through KuCoin, ChangeNow and HitBTC. Native SCRT balances and the SCRT supply were not touched by the exploit itself. The token-level effect came from the response, which minted 44,000,000 SCRT for remediation. (Source: Common Prefix Secret Network exploit analysis, v1.26 ECONOMICS.md)
Axelar's Emergency Committee disabled the Secret connection, Squid removed Secret from its frontend, and the Secret team was notified to halt and migrate the contract. Governance then approved a 44,000,000 SCRT remediation allocation in Proposal 365, with 30% liquid at execution and the rest vesting linearly over 24 months after a 6-month cliff. (Source: Common Prefix Secret Network exploit analysis, v1.26 ECONOMICS.md)
The exploit is contained but unrecovered. No stolen assets have been returned, and victims are being compensated from the remediation allocation, which the continuance proposal says will not guarantee full recovery. (Source: Common Prefix Secret Network exploit analysis, Secret 3.0 Community Continuance of Secret Network L1)
The exploit is analyzed in the Common Prefix post-mortem and addressed in the remediation terms of the continuance proposal. The xAPIC and MMIO SGX incident of 2022 and the Wiretap and Battering Ram SGX research of 2025 are excluded because they were privacy and consensus seed issues that did not affect SCRT, its supply or tokenholder balances, and they are covered in §12B. The February 2022 secp256k1 congestion during the Shade airdrop was a performance incident with no loss of funds and is also excluded. (Source: Common Prefix Secret Network exploit analysis, Secret 3.0 Community Continuance of Secret Network L1, SGX.Fail, Secret Network Security Update Intel SGX Vulnerability Response, Secpk-Verifications Bloat)
Governance Control over Monetary Policy & Rewards: (If applicable) To what extent can governance change monetary policy, fee parameters, or reward allocations (e.g., inflation rate, treasury flows, incentive programs), and how could such changes adversely affect tokenholders?
Response
Impact of Regulatory Change on TGE and Listings
SCRT's predecessor sale has already drawn enforcement. In February 2020 the SEC found that Enigma's 2017 ENG sale, which raised about $45 million, was an unregistered securities offering. Enigma paid a $500,000 penalty, agreed to a claims process for purchasers, and registered ENG under the Exchange Act with periodic reporting. That history leaves a record venues can weigh when they review SCRT, and the continuance proposal states that exchange listing and ongoing support decisions remain outside the control of any community proposal. A regulatory change that leads a venue to delist SCRT would cut liquidity, and the 2026 mint of 1,079,000,000 SCRT adds a further reason for venues to reassess support. (Source: SEC press release 2020-37, Enigma MPC Form 10-K, Secret 3.0 Community Continuance of Secret Network L1, Cryptoslate on the SCRT dilution mint)
Entity-Level Regulatory Impact
The network's entities have each carried legal obligations. Enigma MPC, Inc., the Delaware company behind SCRT Labs, operated under the SEC order and became a registered reporting company. The Foundation moved from Secret Foundation Inc., a US C-Corp, to a Cayman Islands entity, with a CPA firm advising on the tax strategy for the transfer of funds. The continuance proposal lists legal and entity risk as a material risk, stating that forming and capitalizing the new entity introduces jurisdictional, compliance and operational risk. (Source: SEC press release 2020-37, Enigma MPC Form 10, Update on Secret Foundation Formation, Secret 3.0 Community Continuance of Secret Network L1)
Tokenholder Tax Treatment
Neither the Foundation nor the network documentation publishes a tax analysis of SCRT. The Foundation about page, the governance and staking documentation and the continuance proposal do not address how staking rewards, the one-for-one ENG to SCRT swap, the burning of SCRT to claim under the SEC settlement, or the 2026 dilution mint are treated for tax purposes. Treatment of staking inflation in particular varies by jurisdiction. Tokenholders are responsible for understanding and meeting their own tax obligations. (Source: Secret Network Foundation, The SCRT coin, Enigma Claim Form, Secret 3.0 Community Continuance of Secret Network L1)
Jurisdictional & User Access Restrictions
The protocol itself imposes no jurisdiction or user-type restriction, because any holder can bond and vote onchain, and the official access page lists venues without geographic limits. Access in practice depends on third parties. Enigma sold its post-ICO ENG on Binance, which barred US persons, and each venue on the access page applies its own jurisdictional rules. After the June 2026 bridge exploit, Axelar disabled the Secret connection and Squid removed Secret from its frontend, which cut a cross-chain access path for users. (Source: How to buy and store Secret, Governance, Enigma MPC Form 10, Common Prefix Secret Network exploit analysis)
Bugs and Design Flaws
Secret Network's privacy rests on Intel SGX, and SGX has been broken repeatedly. The xAPIC and MMIO exploit extracted the consensus seed and made all past secret-4 private transactions decryptable, and the Wiretap and Battering Ram research forged an enclave attestation on testnet. Application code has also failed. The June 2026 CW20-ICS20 bridge exploit drained about $4.67 million because safety checks in the contract had been commented out. The continuance proposal adds that the chain has not been well maintained for some time and that its new stewards inherit the accumulated technical debt with the codebase. (Source: SGX.Fail, Secret Network Security Update Intel SGX Vulnerability Response, Common Prefix Secret Network exploit analysis, Secret 3.0 Community Continuance of Secret Network L1)
Security Measures & Their Limitations
The network's defenses are the registration freeze on vulnerable SGX hardware, consensus seed rotation, network access control, a trusted-node allowlist and governance approval of new validator nodes. These measures protect future data but cannot restore the privacy of transactions made before the seed was compromised. They also depend on SGX patches from hardware vendors, which the SGX.Fail survey found take almost two months to ship. The development company that built the chain left on September 1, 2026, and the continuance thread records that the chain halted when its largest validator went down, which shows that liveness depends on a few large operators. The continuance proposal offers no guarantees beyond best effort. (Source: SGX.Fail, Secret Network Security Update Intel SGX Vulnerability Response, SCRT is moving to Arbitrum, Secret 3.0 Community Continuance of Secret Network L1, Secret Network 2026 Roadmap)
Critical Economic Assumptions
The continuance model assumes that a one-time mint of 1,079,000,000 SCRT, about 74.9% of post-mint supply, can fund a new team, validators and remediation without collapsing the price. Holders before the mint were diluted to about 25.1% of supply. Supply was 1,450,865,943 SCRT on 2026-09-28 and grows at a fixed 5% a year. The unlock schedule adds 308,400,000 SCRT liquid at execution, then linear vesting of the 299,000,000 SCRT foundation and core development buckets after 6-month cliffs, 4,500,000 SCRT quarterly to advisors and quarterly validator program unlocks over 60 months. The proposal itself names market and liquidity shock from the mint as a risk. (Source: v1.26 ECONOMICS.md, Total supply, Mint params, Secret 3.0 Community Continuance of Secret Network L1)
Governance Control over Monetary Policy & Rewards
Governance by bonded SCRT controls inflation, the community and foundation taxes and software upgrades, and a single proposal, Proposal 365, pinned inflation at 5% and zeroed the foundation tax. That vote passed with about 38.8 million SCRT Yes against about 5.0 million No with Veto, while about 53.5 million SCRT abstained, so a small active voting base set the monetary policy for the whole network. The continuance proposal warns that large historical holders may no longer be aligned with the network and that concentrated voting power has delayed or defeated earlier proposals. Vested coins from the new allocations may be staked, so the Foundation, the core development team and advisors will gain voting weight as their allocations are delivered. (Source: Proposal 365 onchain record, Proposal 360 onchain record, Distribution params, Secret 3.0 Community Continuance of Secret Network L1)
