The leading mining pools and hash rate providers have joined the Psy Protocol testnet, collectively building the next-generation PoW smart contract p

Source: Psy

Psy Protocol announced today that four leading industry mining pools and hashrate ecosystems will join its testnet, which is particularly rare for a new PoW smart contract platform. The world's largest Dogecoin and Litecoin mining pool, F2Pool, will participate in this test alongside three hashrate infrastructure ecosystem partners: GrandCroix, DePIN X Capital, and Codestream.

In the benchmark test, Psy will demonstrate the ability to process over a million transactions per second. The protocol achieves this goal by pushing proof generation to the edge: users generate zero-knowledge proofs for their transactions on their local devices, thereby eliminating the computation bottleneck typically faced by validators.

Subsequently, miners validate these proofs and utilize a proof aggregation mechanism to recursively compress proofs, folding multiple proofs into a single proof of constant size. This recursive aggregation means that the verification burden remains fixed and independent of transaction volume, allowing the network to scale horizontally as more users generate proofs in parallel.

Psy's New Hashrate Partners

Founded in 2013, F2Pool is the world's largest Dogecoin and Litecoin mining pool. The company provides services to miners globally and has established itself as a key infrastructure provider in the PoW ecosystem.

GrandCroix focuses on developing high-performance mining infrastructure for decentralized AI networks, specializing in building large-scale inference mining systems core to efficiency and continuous operation, with deep technical expertise in coordinating distributed computing resources. GrandCroix has set a dominant record on the Bittensor network—running as the network's sole miner for 6 consecutive months, accumulating 200 million USD worth of TAO, representing 25% of the total supply. This achievement led to the establishment and sale of the Bittensor Exchange, making it the leading trading platform for the network.

Headquartered in Asia, DePIN X Capital is a digital asset investment and risk institution focused on designing and managing Digital Asset Treasuries (DAT) tools listed on Nasdaq and NYSE. In addition to its capital market business, DePIN X builds on its foundation as 1475—one of the world's largest Filecoin node operators—and concurrently engages in infrastructure and investment business. Through this business line, DePIN X provides GPU infrastructure, node operation, and strategic capital support for leading decentralized infrastructure and AI projects, combining technical execution with direct investment to drive sustainable long-term ecosystem development.

Codestream is focused on providing compute infrastructure for enterprise AI workloads and decentralized applications. The company supports developers and network platforms by designing scalable global distributed GPU resources for production environments requiring continuous availability.

The Uniqueness of Psy

The core innovation of the Psy protocol lies in "Proof of Useful Work," where miners are responsible for validating and aggregating zero-knowledge proofs rather than competing to find random hash values. Users generate proofs for transactions on their local devices and only submit proofs and state updates to the network. Miners recursively combine these proofs based on Psy's PARTH (Parallel Ascending Recursive Tree Hierarchy) state model to form a single proof that can validate the entire block.

The protocol avoids state contention by establishing a separate state tree for each user. When a user makes a transfer, they update only their outbox instead of directly modifying the recipient's balance; the recipient then extracts the tokens by validating the sender's commitment. This mechanism allows millions of users to transact simultaneously without conflicts arising from shared state contention.

In terms of scalability, Psy achieves logarithmic growth rather than linear growth: block generation time increases logarithmically with the number of users, rather than linearly with transaction volume. Additionally, zero-knowledge proofs naturally provide privacy protection, enabling users to prove the validity of transactions without disclosing transaction amounts, recipients, or purposes.

Partner Feedback

"These partners are committing real hardware and funds to validate this brand-new ultra-fast PoW smart contract platform." said Psy Protocol's founder and CEO Carter Feldman, "In a proof-of-stake system, large holders rely on staking existing assets to control the network, whereas here, miners need to deploy physical infrastructure and bear operational costs to participate. When established mining pools and hashpower ecosystems decide to allocate resources to a new chain, it immediately attracts market attention—a testament to trust in the technology and team, and we are honored to have them join the Psy community."

"Our participation in the Psy testnet is part of DePIN X's broader mission to connect the capital markets with real-world compute power. We view Psy Protocol as a genuinely utility-generating, non-wasteful PoW network, which is the type of infrastructure we are willing to support and represents the future form of decentralized compute power." said DePIN X Capital's founder Simon Yang.

“Codestream has always been focused on supporting the most promising projects, and we believe Psy's architecture can bring about significant change,” said Codestream CEO Gadi Glikberg. “Psy's scalability fundamentally reshapes the economic model of decentralized applications and has the potential to become a growing coordination layer for the agent-centric economy.”

These partners will conduct a comprehensive validation of the protocol's performance and security through the testnet before the mainnet launch.

About Psy Protocol

Psy Protocol is an intelligent contract platform based on Proof-of-Useful-Work, deeply integrating the neutrality and security of proof of work with the high scalability and high-speed performance of next-generation architectures. By delegating transaction proof generation to users and aggregating zero-knowledge proofs on-chain, Psy achieves internet-scale throughput, low fees, and open participation without compromising the exceptional security of proof of work. The Psy platform empowers developers to build large-scale Web3 applications and enable AI agent economies, aiming to be the core infrastructure of the next-generation decentralized internet ecosystem.