FAIR: The First Blockchain Built for the Next Generation of DeFi and AI

AI agents are beginning to execute trades, manage capital, and route liquidity onchain. But the infrastructure they rely on - the same infrastructure DeFi users depend on - is fundamentally flawed. Transactions are exposed, strategies are leaked, and MEV bots and insiders exploit both users and protocols at every layer. Limit orders on decentralized exchanges (DEXs) are currently impractical due to the risk of front-running or sandwich attacks from miners extracting Maximum Extractable Value (MEV). Similarly, automated index rebalancing on DEXs faces the same MEV-related challenges. Every trade on these platforms incurs a small MEV loss, essentially a transaction tax. As AI agents increase DeFi transaction volume, these MEV losses will grow proportionally. Therefore, mitigating MEV is becoming increasingly crucial.

FAIR changes this as it will be the first blockchain to run the BITE (Blockchain Integrated Threshold Encryption) Protocol. FAIR is the first Layer 1 blockchain purpose-built for the next generation of DeFi and Web3 AI through fairness, privacy, and AI-optimized execution by eliminating MEV at the consensus level using cryptography and Trusted Execution Environments (TEE). For DeFi users, that means your transactions can’t be front-run, censored, or used against you. A whole new set of use cases will also emerge that will helps DEXs rival CEXs in trading efficiency. What you see is what you get.

FAIR also represents the next phase of the SKALE ecosystem. It introduces a dual token economy where SKL is burned to operate FAIR validator nodes and unlock advanced features, while FAIR serves as the native token for the new Layer 1. To align the networks from day one, a portion of FAIR’s native token supply will be airdropped to SKL holders at TGE (contingent on governance voting, tokenomics finalization, and the launching of the FAIR mainnet).

SKALE Chains will upgrade to use the FAIR SDK to gain encrypted execution capabilities while also integrating directly for access to deep liquidity and a shared, provably fair financial layer. This gives users and developers access to high-speed, gas-free, MEV-resistant DeFi from day one. It’s the foundation for the next generation of onchain markets: intelligent, private, and built to scale

A Broken System: MEV Is the Hidden Tax for All Users

MEV, or Maximal Extractable Value, has become an invisible tax on blockchain users. On chains like Ethereum, bad actors reorder, censor, and front-run transactions to extract billions; not just from protocols, but directly from everyday users.

It’s not an edge case, it’s embedded in the system. Over 70% of Ethereum blocks today include MEV. As AI agents and stablecoins accelerate adoption and DeFi usage climbs, MEV’s impact is set to multiply. Left unaddressed, it’s projected to become a $100 billion problem.

Fairness in blockchain is no longer a luxury. For DeFi users, it’s a requirement.

Introducing FAIR: The First MEV Resistant L1

FAIR is a new kind of Layer 1 blockchain where MEV can’t exist. At its core is BITE Protocol (Blockchain Integrated Threshold Encryption), the first protocol to eliminate MEV at the consensus level.

When a user submits a transaction on FAIR, BITE Protocol encrypts the transaction data before it is broadcast to the network. Validators cannot read or reorder it. Only after the block is finalized does a decryption committee unlock the data for execution.

This means no front-running, no sandwich attacks, and no manipulation. FAIR doesn’t just reduce MEV; it makes it impossible.

How It Works: BITE Protocol & FAIR EVM

FAIR combines two critical components: Native threshold encryption and next-generation Ethereum Virtual Machine.

At the core of FAIR is a purpose-built execution environment that redefines what an EVM can do. The FAIR EVM is not just a faster version of Ethereum’s virtual machine, it’s a complete re-architecture, engineered in C++ to support the demands of AI agents, institutions, and high-frequency financial applications. Unlike traditional EVMs, which are single-threaded and optimized for simplicity, FAIR EVM is designed for parallel execution, asynchronous processing, and database-level efficiency. It delivers instant finality, enabling near real-time execution, and supports complex computation flows without sacrificing determinism or composability.

FAIR EVM’s true advantage is how seamlessly it integrates with BITE Protocol.

While FAIR EVM executes smart contracts with unmatched speed and flexibility, BITE ensures that the inputs to those contracts remain confidential until block finalization. Every transaction is encrypted on the client side and only decrypted by a validator committee after it's been irrevocably committed to the chain. Learn more about BITE in the BITE Protocol Whitepaper.

This pairing of a high-performance EVM fused with consensus-layer encryption creates something entirely new: a blockchain where smart contracts can execute powerful logic without exposing the strategies, orders, or decisions behind them. No other VM offers this level of native MEV resistance or privacy as a built-in feature. No custom tooling. No extra layers. Just a faster, smarter, and fairer foundation for the next generation of AI-integrated DeFi (DeFAI).

What You Can Build: AI + DeFi Without Exploitation

FAIR opens the door to a new class of applications.

Imagine DeFi protocols such as AMMs, lending markets, perps, limit orders on DEXs, index assets with automated rebalancing, or onchain CLOBs where no one can frontrun trades or extract value from users. Envision AI agents that execute encrypted strategies in real-time without revealing their logic. Picture capital raises, prediction markets, auctions, and coordination tools operating privately and fairly, on a level playing field.

Whether you're building AI-native financial infrastructure or confidential, decentralized applications, FAIR gives you the foundation to do it right.

Ecosystem Synergy: FAIR and SKALE

FAIR is a next generation blockchain and will make the SKALE ecosystem and value capture even stronger. Today, SKALE is consistently a top 10 Global Blockchain in terms of UAW and TX volume, however, it leaks value capture to other L1 chains that have strong liquidity and DeFi positions. FAIR is designed to help SKALE stop this value leak and grow even stronger.

FAIR doesn’t launch in isolation; it’s closely integrated with the SKALE ecosystem.

SKALE chains will upgrade to the FAIR SDK, gaining access to encrypted execution, native AI tooling, and zero-MEV guarantees. The SKALE Manager, previously run on Ethereum, will migrate to FAIR, lowering operational costs and reducing dependence on Ethereum.

FAIR will also benefit on Day 1 as the goal is to connect every application on the SKALE Network to FAIR for liquidity, trading, and DeFi activities.

FAIR is a Layer 1 blockchain and therefore must have its own native token at the genesis block for security. FAIR will be unique though, as it introduces a dual-token blockchain network - SKL and native FAIR tokens will both be utilized in FAIR (token ticker TBD). FAIR will be designed to be a SKL burning machine. While FAIR has its own native token, SKL will play a crucial role: it's burned to operate FAIR validator nodes and unlock advanced features from the FAIR SDK. Network creators plan to allocate 33% of FAIR’s total supply to the community, including 10% as an airdrop for SKL holders at TGE - ensuring SKALE’s existing supporters are part of FAIR from the beginning. This airdrop plan is currently under development. However, one primary goal is to reward long-term SKL holders (especially those with smaller amounts) in an outsized manner. Foundation wallets and large core team wallets will be excluded from this airdrop. Details on timing, eligibility, lock periods, and distribution mechanics are subject to change and will be announced closer to mainnet launch. This airdrop is also contingent on a successful mainnet launch and onchain governance approval from the respective DAOs. The open source developer community contributing to the project plans to launch mainnet in late Q425. The final timeline and roadmap will be published as soon as it is available.

And as FAIR becomes the value and liquidity hub for SKALE, every chain in the ecosystem will gain seamless access to deep, MEV-free markets.

What’s Next

The FAIR testnet is preparing for launch, with support from communications giant Vodafone already onboarding to secure the network from day one.

Following testnet, the integration roadmap with SKALE will unfold in three key phases:

1. Launch of FAIR Mainnet
2. Bringing the FAIR SDK to SKALE Chains
3. Migrating the SKALE Manager from Ethereum to FAIR

In parallel, FAIR will roll out tokenomics details, developer programs, and community incentives to support builders and early adopters.

The Future is FAIR

Blockchain began as a movement for fairness and decentralization. Somewhere along the way, MEV broke that promise, turning networks into insider playgrounds.

By embedding encryption into consensus, pairing it with a high-speed EVM, and aligning incentives across two interoperable ecosystems, FAIR delivers something no other blockchain can: cryptographic fairness, built to scale.

FAIR is where AI lives and MEV dies.

Encrypt your early access to FAIR's incentivized testnet, coming soon - front-running not allowed.

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🌐 FAIR Website

🐦 @FAIR_blockchain on X

📝 FAIR on Medium