# Azoth Protocol ## How we achieve absolute decentralization？ ### 1. Technical layer: building a verifiable foundation of trust All Investors can on boarding by connecting your wallet. If it's a new address, the wallet will be linked to that Azoth account and can be used by the user to sign in to the platform in the future. For investments, only wallets that meet the compliance requirements of that deal will be allowed to transact in deals. As an issuer registered through the Azoth platform, admin users can also link a bank account to themselves or one of their fund entities. Investors can use these bank accounts to send/receive funds for a transaction when committing to that transaction. ### 2. Governance layer: distributed decision-making engine Regarding which real-world assets will be issued, Azoth DAO leads decision-making, and the quadratic voting system balances power. We use a **three-level DAO governance model：** \ **Proposal level**: adopt a liquid representative system, any user holding ≥12 months can run for field representative of the Asset Issuance Investment Committee. \ **Decision level**: Combine quadratic voting with time decay factor, the voting weight of large households decays exponentially with the time of proposal \ **Execution level**: Smart contracts are automatically deployed through proposals, and key parameter changes require a 2-month buffer period + multi-signature wallet verification ### 3. Compliance layer: regulatory-friendly architecture The first batch of asset tokens on the Azoth platform will be issued on Ethereum smart contracts. By combining Real World Assets (RWAs) with EVM-compatible smart contracts, developers can leverage the latest crypto primitives to advance financial inclusion and create life-changing impacts. Transaction monitoring on the Azoth Platform involves scrutinizing all transactions to detect unusual or suspicious activities that might indicate money laundering, fraud, or violations of sanctions. Effective monitoring can identify anomalies, unusual patterns, and red flags that warrant further investigation. Once illegal and non-compliant transactions are found on the chain, Azoth will take immediate action. **Regulatory sandbox mode**: automatically switch KYC verification strength when access from a specific jurisdiction is detected. ### 4. Economic Layer: Self-Balancing Ecosystem Each real-world asset package corresponds to an independent legal entity, and these assets are isolated from each other. Meanwhile, Azoth has developed risk stress testing tools to simulate the impact of black swan events on system solvency on a daily basis and dynamically adjust the reserve ratio. Azoth will regularly set aside a portion of the platform's revenue as a risk compliance reserve. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://azoth.gitbook.io/azoth-white-paper/technology/editor.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.