Part H: Information on the underlying technology

H.1. Distributed ledger technology

As $WYT has been developed on the Solana blockchain and is planned for deployment on Polygon, Bnb, Base, Arbitrum and Ethereum, a detailed analysis of these networks is required:

SOL: Solana is a public, permissionless blockchain designed for high-speed, high-throughput transaction processing. Unlike traditional blockchains that rely on sequential block production, Solana integrates Proof-of-History (PoH), a cryptographic verifiable delay function (VDF) that orders transactions before consensus, reducing latency and increasing efficiency. The Solana ledger is maintained by a decentralized network of validator nodes with no central coordinator. Block production occurs approximately every 400 milliseconds, and transaction finality is typically achieved in under a second. Solana uses Tower BFT consensus, an optimized Proof-of-Stake (PoS) mechanism, which leverages PoH timestamps to structure validator voting and reduce communication overhead. This process ensures fast transaction confirmation while maintaining security and consistency across the network. Solana’s ledger supports smart contract execution, allowing it to function as a generalized state machine that records programmatic state changes beyond basic transactions. Technical Features of Solana’s DLT

- Turbine – A block propagation protocol that divides data into smaller packets for more efficient transmission.

- Gulf Stream – A mempool-less transaction forwarding protocol that preemptively routes transactions to validators.

- Sealevel – A parallel smart contract execution engine that enables concurrent transaction processing.

- Pipelining – A transaction validation model that segments processing into sequential steps for efficiency.

- Cloudbreak – A horizontally scalable accounts database that manages concurrent read/write operations.

- Archivers – A system for offloading and storing historical ledger data separate from validator nodes. These technical components allow Solana’s distributed ledger to maintain high performance while processing large transaction volumes. Security, Decentralization, and Open-Source Transparency Solana’s consensus model is designed to ensure network integrity while reducing potential centralization risks. The validator network is globally distributed across multiple data centers, and Tower BFT enforces cryptographic security through validator stake commitments. The blockchain is open-source and released under the Apache 2.0 license, with the full codebase publicly available on GitHub. This ensures transparency, auditability, and external security review.

- Solana has processed high transaction volumes under real-world conditions, but the network has also experienced periodic congestion and temporary outages (see Risks section). Ongoing protocol refinements continue to address performance and stability challenges.

- Solana Whitepaper: https://solana.com/solana-whitepaper.pdf

- Public block explorer: https://solscan.io/

- Solana Main repository: https://github.com/solana-labs/solana

- Solana Developer portal: https://solana.com/developers

ETH:

Ethereum is a public, decentralized blockchain, which is a type of Distributed Ledger Technology (DLT). It enables the execution of smart contracts and decentralized applications (dApps) in a trustless environment without intermediaries. The Ethereum blockchain is maintained by a global network of validators who secure the network through the Proof-of-Stake (PoS) consensus mechanism.

Ethereum Blockchain Characteristics

Decentralization: Ethereum is a permissionless blockchain with no central authority. Anyone can run a node, participate in validation, or develop smart contracts and dApps.

Security: Transactions and smart contracts are secured through cryptographic techniques, and blocks are linked in an immutable ledger. The transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) via “The Merge” has significantly enhanced energy efficiency and network security.

Scalability & Layer 2 Solutions: Ethereum supports scaling solutions such as rollups (Optimistic and ZK-Rollups) and sidechains, improving transaction throughput and reducing costs.

Proof-of-Stake (PoS) Consensus Mechanism

As $WYT operates on Ethereum which transitioned from Proof-of-Work (PoW) to Proof-of-Stake (PoS) with “The Merge” in September 2022, eliminating mining and replacing it with staking.

(a) Validators propose and finalize blocks by staking ETH as collateral.

(b) The Beacon Chain coordinates validators and ensures security through a randomized selection process.

(d) This PoS mechanism significantly reduces Ethereum’s energy consumption compared to PoW.

Further Information Sources and Links:

(a) Ethereum Whitepaper: https://ethereum.org/en/whitepaper/

(b) Ethereum Main Repository: https://github.com/ethereum

(d) Ethereum Wiki: https://eth.wiki

POL:

Polygon operates on a set of Ethereum-compatible distributed ledger technologies designed to enhance scalability and efficiency while maintaining decentralization. Its primary chain, the Polygon Proof-of-Stake (PoS) chain, is a Layer 2 network built on top of Ethereum and secured by a decentralized validator set. Polygon also supports advanced zero-knowledge (zk) technologies such as Polygon zkEVM and Polygon Miden, which leverage cryptographic proofs to execute and verify transactions efficiently. All Polygon chains are interoperable with Ethereum and use smart contracts to record transactions on transparent, immutable ledgers, ensuring security, transparency, and on-chain verifiability

H.2. Protocols and Technical Standards

As $WYT has been developed on the Solana blockchain and is planned for deployment on Polygon and Ethereum, a detailed analysis of these networks is required:

SOL:

Solana operates on a custom Layer-1 blockchain protocol with several technical standards integral to its functionality. These standards define how transactions are processed, consensus is reached, and smart contracts interact with the network.

Consensus Protocol Solana’s consensus mechanism is a hybrid of Proof-of-Stake (PoS) and Proof-of-History (PoH), optimized for high-speed and efficient transaction finality.

- Tower BFT: A custom implementation of Practical Byzantine Fault Tolerance (pBFT), leveraging PoH timestamps to reduce validator communication overhead. Validators rotate based on a leader schedule derived from stake distribution and PoH sequencing. A block reaches finality once two-thirds (supermajority) of stake-weighted votes have been committed.

- Proof-of-History (PoH): A verifiable delay function (VDF) that timestamps transactions before they enter consensus. Each block producer must include a PoH-generated hash as proof of the time at which it was created, allowing nodes to independently verify transaction order without requiring direct communication. This approach significantly reduces latency and enables Solana to achieve sub-second finality while tolerating up to one-third of malicious validators without compromising ledger integrity.

Transaction Processing Standards

Solana uses a parallel transaction execution model to maximize throughput:

- Sealevel: A smart contract execution engine that processes multiple transactions in parallel by allowing contracts to declare which state accounts they will access upfront, avoiding conflicting writes.

- Pipelining: A segmented transaction processing system that divides tasks into stages (fetch, signature verification, execution, and state updates), ensuring efficient block validation. Solana transactions can include multiple instructions per call and require explicit access lists for state changes, differing from Ethereum’s sequential execution model.

Smart Contract Standards

Solana’s smart contract architecture supports tokenization and NFT standards:

- SPL Token Standard: Equivalent to Ethereum’s ERC-20, the Solana Program Library (SPL) token standard governs the issuance, minting, and transfer of fungible tokens (e.g., USDC-SPL, wrapped BTC).

- Metaplex Token Metadata Standard: Built on SPL tokens, this defines NFT metadata, ensuring compatibility with wallets and marketplaces. MiCAR White Paper - v 1.1 - April 2025 LCX AG - Herrengasse 6 - 9490 Vaduz - Liechtenstein 24/39

- Solana Program Model: Smart contracts are deployed as on-chain programs written in Rust or C, compiled to Berkeley Packet Filter (BPF) bytecode. Programs are immutable unless deployed with an upgradeable loader, which allows controlled modifications by an authorized entity.

Interoperability and Cryptographic Standards

- Signature & Hashing Algorithms:

- Ed25519 for transaction signatures (same as Stellar and NEAR).

- SHA-256 for PoH and other hashing needs.

- Addressing Format: Base58-encoded public keys for accounts.

- Cross-Chain Compatibility: Emerging standards include Solana Name Service (SNS) and bridging protocols like Wormhole, which facilitates interoperability with Ethereum and other chains.

Network Communication & Validator Coordination

- Gossip Protocols: Validator communication is built on libp2p and optimized for high-throughput UDP-based messaging.

- Turbine: A block propagation mechanism that splits data into smaller packets, allowing efficient distribution across the network.

- Gulf Stream: A mempool-less transaction forwarding system, which preemptively routes transactions to validators, reducing confirmation delays. Security and Governance Standards

- Replay Protection: Transactions include a recent blockhash + durable nonce to prevent replay attacks and ensure transaction uniqueness.

- Validator Rewards & Slashing: Validators earn rewards based on vote transactions rather than block production.

- Solana currently does not implement slashing for validator misbehavior, but mechanisms exist for penalizing double-signing or malicious activity in the future.

Governance:

- Solana currently lacks a formal on-chain governance mechanism for protocol upgrades.

- DAO-based governance exists for specific applications and token projects using the SPL Governance Program, but not for core protocol decisions. Consensus Mechanism & Validator Decentralization Solana’s PoS + PoH consensus model relies on a leader-based block production system, where validators stake SOL to participate in consensus. The leader schedule is randomly assigned based on stake-weighted selection, ensuring decentralized participation in block production.

Validator Independence:

- Over 1,800 validators operate globally, distributed across multiple regions and data centers.

- The Nakamoto coefficient (number of validators needed to control 33% of stake) was around 30 as of late 2023, indicating an improving decentralization profile. Solana’s consensus ensures deterministic finality, meaning transactions do not rely on probabilistic confirmations (as in Proof-of-Work networks). Instead, once a block is finalized by a supermajority of votes, it is irreversible.

ETH:

Ethereum operates on a decentralized, peer-to-peer (P2P) network, enabling smart contracts and decentralized applications (dApps). Transactions and blocks are propagated across the network using the Ethereum Wire Protocol, ensuring consensus and security. Nodes follow the Ethereum protocol specifications, implemented in clients such as Geth (Go Ethereum), Nethermind, Besu, and Erigon.

Consensus Mechanism – Proof-of-Stake (PoS)

Ethereum transitioned from Proof-of-Work (PoW) to Proof-of-Stake (PoS) with The Merge in 2022. Validators replace miners by staking ETH to propose and attest to new blocks. The Beacon Chain coordinates validators, with a randomized selection process ensuring fairness. Slashing penalties deter malicious behavior, while the Epoch Finality System secures the blockchain.

ETHImprovement Proposals (EIPs) & Protocol Upgrades

Ethereum evolution follows an open development process through Ethereum Improvement Proposals (EIPs). Key EIPs include:

(a) EIP-1559: Introduced a transaction fee-burning mechanism to optimize gas pricing.

(b) EIP-3675: Transitioned Ethereum from PoW to PoS.

(d) EIP-721 & EIP-1155: Defined NFT standards for unique and multi-token assets.

Transaction and Address Standards

Ethereum supports multiple address types and transaction models:

(a) Externally Owned Accounts (EOAs): Standard Ethereum wallets controlled by private keys.

(b) Smart Contract Accounts: Deployed contracts with programmable execution logic.

(d) EIP-2718 & EIP-2930: Enabled transaction types such as access lists and optional gas optimizations.

Layer 2 Scaling – Rollups and Sidechains

Ethereum scales through Layer 2 solutions that enhance transaction efficiency:

(a) Optimistic Rollups (e.g., Arbitrum, Optimism): Aggregate transactions and use fraud proofs.

(b) Zero-Knowledge Rollups (ZK-Rollups) (e.g., zkSync, StarkNet): Compress data using cryptographic proofs.

(c) State Channels & Plasma: Enable off-chain transactions while ensuring on-chain finality. Security & Cryptography Standards

Ethereum uses the Keccak-256 hashing algorithm for block validation and Elliptic Curve Digital Signature Algorithm (ECDSA) for securing private keys. Zero-Knowledge Proofs (ZKPs) and BLS Signatures improve transaction privacy and consensus efficiency.

Interoperability & Data Standards

Ethereum employs ERC token standards to ensure compatibility across dApps and exchanges:

(a) ERC-20: Standard for fungible tokens.

(b) ERC-721 & ERC-1155: Standards for NFTs and multi-token assets.

(d) Ethereum Virtual Machine (EVM): Ensures execution consistency across all Ethereum-compatible chains.

Ethereum, modular upgrades and rollup-centric roadmap aim to optimize scalability, security, and usability while maintaining decentralization.

POL:

Polygon is built using Ethereum-compatible protocols and adheres to widely recognized technical standards, primarily the ERC-20 token standard for its native token and EVM (Ethereum Virtual Machine) compatibility for smart contract execution. The Polygon PoS chain uses a dual-consensus architecture combining Proof-of-Stake (PoS) and Heimdall/Bor-based architecture for scalability and efficiency. Advanced Polygon solutions such as zkEVM and Miden implement zero-knowledge rollup technology, following cryptographic standards for secure, trustless transaction verification. Polygon’s protocols are open-source, modular, and designed for interoperability across chains, ensuring alignment with security, performance, and reliability standards expected in regulated blockchain environments under MiCA.

H.3. Technology Used

As $WYT has been developed on the Solana blockchain and is planned for deployment on Polygon and Ethereum, a detailed analysis of these networks is required:

SOL:

Solana utilizes widely adopted cryptographic standards, including Ed25519 for transaction signatures—where each Solana address corresponds to an Ed25519 public key—and SHA-256 for Proof-of-History (PoH) and hash-based identity verification. Validators employ high-performance hardware, including NVMe SSDs and large-memory configurations, optimized for memory-mapped file access to retrieve account states efficiently.

Due to the high computational demands of consensus and PoH, validators frequently utilize GPUs to accelerate Ed25519 signature verification, enabling the network to process thousands of transactions per second.

While PoH remains CPU-bound by design to prevent manipulation of timekeeping, GPUs assist with:

- Bulk signature verification, reducing computational overhead.

- Erasure coding in Turbine, which improves data redundancy and recovery. For network communication, Solana heavily utilizes the UDP protocol due to its lightweight and low-latency properties. To mitigate packet loss risks, Solana implements forward-error correction (erasure coding) in Turbine, allowing efficient block propagation even in unreliable network conditions.

ETH:

Ethereum operates on a decentralized blockchain network utilizing the Proof-of-Stake (PoS) consensus mechanism via Ethereum’s Beacon Chain and validators to secure the network and validate transactions. The Ethereum Virtual Machine (EVM) executes smart contracts, enabling decentralized applications (dApps) and tokenized assets.

Wallets and key management infrastructure play a critical role in Ethereum’s ecosystem. Users can store ETH and interact with smart contracts using custodial or non-custodial wallets. Non-custodial wallets, such as MetaMask, Ledger, and Trezor, provide users with full control over their private keys. Multi-signature (multi-sig) wallets enhance security by requiring multiple approvals for transactions.

Ethereum transactions use an account-based model, and addresses follow the Ethereum standard (0x-prefixed addresses). Gas fees are paid in ETH, with Ethereum’s EIP-1559 upgrade introducing a base fee mechanism to improve fee predictability.

For scalability and efficiency, Ethereum supports Layer 2 solutions, such as Optimistic Rollups and zk-Rollups, which enable faster and cheaper transactions. Smart contract standards, including

ERC-20 (fungible tokens), ERC-721 (NFTs), and ERC-1155 (multi-token standard), facilitate diverse blockchain applications and interoperability.

POL:

Polygon utilizes a suite of Ethereum-compatible technologies to enable scalable, low-cost, and secure blockchain infrastructure. Its core network, the Polygon PoS chain, employs a Proof-of-Stake consensus mechanism combined with a dual-layer architecture (Heimdall and Bor) for fast and efficient block production. Polygon also supports advanced zero-knowledge (zk) technologies, including Polygon zkEVM and Polygon Miden, which use cryptographic proofs to enable high-throughput, trustless scalability. All Polygon chains are EVM-compatible, support smart contracts, and are interoperable with Ethereum, allowing seamless deployment and migration of decentralized applications while maintaining decentralization, transparency, and verifiability

H.4. Consensus Mechanism

As $WYT has been developed on the Solana blockchain and is planned for deployment on Polygon and Ethereum, a detailed analysis of these networks is required:

SOL:

Solana’s consensus mechanism is a Byzantine Fault Tolerant (BFT) Proof-of-Stake (PoS) system enhanced by Proof-of-History (PoH). Validators participate in weighted voting based on stake, with PoH acting as a global time source to streamline consensus.

Leader Selection

The leader schedule is deterministic, precomputed for each epoch (~2 days) based on stake weight.

Each slot (~400ms) has a designated leader responsible for producing a block.

If a leader fails to produce a block, the next scheduled leader proceeds after the slot duration, ensuring the network continues operating (although the missed slot remains empty).

Voting & Finality

Validators verify transactions and submit vote transactions referencing the latest confirmed block.

Tower BFT enforces a lockout mechanism, meaning each vote also implicitly confirms all previous blocks and extends the lockout period for those blocks.

If a validator votes on a competing fork, it breaks the lock and risks penalties (though slashing is not actively enforced yet).

A block is finalized once it accumulates enough stake-weighted votes, making it economically unfeasible to revert unless more than 1/3 of validators act maliciously.

The network designates a rooted block—the oldest block with 2/3+ supermajority confirmation—as the new ledger root, ensuring finality for all prior blocks.

Integration of Proof-of-History (PoH)

PoH serves as a cryptographic timestamping mechanism, allowing validators to verify the order of events without requiring additional rounds of communication.

The leader includes the current PoH hash in each block, ensuring that validators can determine the correct sequence of blocks relative to others.

This process significantly reduces latency and increases throughput, as validators do not need to synchronize timestamps through conventional consensus rounds.

ETH:

Ethereum operates using the Proof-of-Stake (PoS) consensus mechanism, which enhances security, scalability, and energy efficiency compared to Proof-of-Work. Validators replace miners, staking ETH as collateral to propose and validate blocks. Honest participation is incentivized with staking rewards, while malicious behavior can result in slashing (loss of staked ETH).

Ethereum consensus is maintained by the Beacon Chain, which coordinates validators and ensures block finality. Blocks are proposed and confirmed in slots (~12 seconds each), grouped into epochs (~32 slots per epoch). The Casper FFG and LMD-GHOST algorithms govern finality and fork choice rules, ensuring a secure, decentralized ledger.

Ethereum PoS mechanism significantly reduces energy consumption and enhances network decentralization, as participation does not require costly mining equipment. The transition from PoW to PoS was completed through The Merge (September 2022), solidifying Ethereum’s long-term sustainability.

POL: The POL token is designed to be used within Polygon’s Proof-of-Stake (PoS) and zero-knowledge (zk) based consensus frameworks. On the Polygon PoS chain, validators stake POL (following migration from MATIC) to participate in block validation and network security. In Polygon’s zk-based chains, such as Polygon zkEVM, consensus is achieved through off-chain computation and the submission of validity proofs to Ethereum for final settlement. POL enables participation across multiple chains in the Polygon ecosystem, supporting a multi-chain validator economy, where stakers secure various protocols and earn rewards through protocol-defined consensus mechanisms.

H.5. Incentive Mechanisms and Applicable Fees

As $WYT has been developed on the Solana blockchain and is planned for deployment on Polygon and Ethereum, a detailed analysis of these networks is required:

SOL:

Solana’s economic model is structured to incentivize network security, staking participation, and efficient transaction processing while maintaining low fees for users. Validators, responsible for producing blocks and securing the network, earn staking rewards through an inflationary issuance of SOL tokens. As of 2025, the annualized inflation rate is approximately 4.68% and is set to decrease yearly, following a predefined monetary policy. Validators receive rewards in proportion to the amount of SOL staked with them, which includes both their own stake and delegated tokens from other users. To compensate for their services, validators can set a commission fee, typically ranging between 5-10%, which is deducted from the rewards distributed to delegators. This mechanism ensures that validators remain incentivized to provide reliable uptime and performance, as missed votes lead to lower rewards. At the same time, token holders are encouraged to stake their SOL rather than hold it idle, as staking provides additional rewards while contributing to the network’s security. Solana’s transaction fee model is designed to be cost-effective, making the network suitable for high-frequency use cases such as payments, gaming, and decentralized applications. The fees for a basic transaction are typically a fraction of a cent, around 0.000005 SOL.

Every transaction includes a fee that is deducted from the sender’s account. Half of the collected transaction fees are burned, permanently reducing the total SOL supply, while the other half is allocated to the validator that processes the transaction. This system introduces a deflationary element, offsetting inflation over time, especially as network activity increases. While current fee burning represents only a minor reduction in the overall supply, higher transaction volumes in the future could lead to greater deflationary effects, potentially balancing or even surpassing new token issuance. Validators on Solana are currently subject to minimal penalties. Unlike some Proof-of-Stake blockchains that enforce slashing for downtime or incorrect behavior, Solana’s current model does not slash validators who are offline, although they simply do not earn rewards while inactive. Slashing for double-signing exists as a deterrent but has not been actively enforced as of 2025. Future governance proposals may introduce stricter penalties, particularly for prolonged validator inactivity, to further ensure the reliability of the network. Solana also implements a mechanism related to account storage, which previously involved an ongoing rent fee for maintaining an account on-chain. This has since been replaced with a requirement for accounts to maintain a minimum SOL balance to remain active.

If an account balance falls below this rent-exempt threshold, its funds may be reclaimed and burned, adding another deflationary aspect to Solana’s tokenomics. Most wallet applications handle this process automatically by ensuring that new accounts are funded with the required minimum SOL, making the mechanism seamless for users. The broader economic alignment of Solana ensures that validators, token holders, and network participants share common incentives. Validators benefit from higher transaction volumes as they collect fees, while SOL holders gain from a secure and efficient network that supports a wide range of applications. As of early 2025, over 70% of SOL’s circulating supply is staked, strengthening economic security and reducing token liquidity, which can help stabilize price fluctuations.

The combination of decreasing inflation, fee burning, and high staking participation leads to a monetary policy that ensures sustainable token issuance. If transaction volumes continue to rise significantly, fee burning could play a larger role in offsetting new issuance, potentially bringing net inflation close to zero or even negative in certain periods of high network activity

ETH:

Ethereum incentive mechanism is based on the Proof-of-Stake (PoS) model, where validators secure the network by staking ETH and proposing or attesting to blocks. Validators earn staking rewards in the form of newly issued ETH and priority transaction fees. To discourage dishonest behavior, malicious validators risk having their staked ETH slashed (partially or fully forfeited).

Ethereum fee model follows the EIP-1559 upgrade, introducing a base fee that is burned, reducing ETH supply, and a priority fee (tip) that incentivizes validators to prioritize transactions. The base fee adjusts dynamically based on network congestion, optimizing gas costs.

Gas fees are measured in gwei (fractions of ETH) and depend on transaction complexity.

High-demand periods result in increased fees, while Layer 2 scaling solutions like Optimistic and ZK-Rollups offer lower-cost alternatives for users. This model enhances security, ensures long-term sustainability, and gradually reduces ETH inflation through the burning mechanism.

POL:

The POL token is designed to support a protocol-level incentive mechanism that rewards validators and stakers for securing one or more Polygon chains. Holders who stake POL can earn rewards in the form of newly emitted tokens or transaction fees, depending on the chain’s configuration and governance decisions. The protocol may introduce governance-approved emissions to incentivize long-term participation and network security. Applicable fees include transaction (gas) fees, which are paid in POL on Polygon-based chains, and may vary by protocol usage and congestion. Fee structures and reward rates are subject to change through decentralized governance processes.

H.6. Use of Distributed Ledger Technology

False

H.7. DLT Functionality Description

Not applicable

H.8. Audit

False

H.9. Audit Outcome

Not applicable

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