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C1 Option · Sovereign Rollup

W3 runs its own execution layer (VM + token state), posts proofs to a DA layer for ordering and availability.

A sovereign rollup means we control the execution environment and token economics, but outsource ordering and data availability to a specialized layer (Celestia, EigenDA, Avail).

Sovereign Rollup Architecture

Ethereum L1

L1 Validators
↓
Execute Contracts
↓
State Root
L1 does everything

Ethereum Rollup

Rollup Executes

↓

Post Proof to L1

↓
L1 Verifies

Settles to Ethereum

Sovereign Rollup

W3 VM Executes
↓
Post to DA Layer
↓
DA Orders Only
No L1 settlement

Key Difference: Ethereum rollups post proofs to Ethereum for verification. Sovereign rollups post to DA for ordering/availability only—no L1 verifies our state transitions. We're responsible for our own execution correctness.

Where Components Live

W3 Execution Layer (Our VM)

  • Token State: W3 token balances, staking records, governance votes live in our VM.
  • Registries: Workflow + validator registries executed in our runtime (C2 state machines).
  • Attestation Validation: Our VM verifies orchestration signatures, processes slashing.
  • State Transitions: Every workflow run, token transfer, stake/unstake happens here.

DA Layer (Celestia/EigenDA/Avail)

  • Data Blobs: State commitments (Merkle roots, state diffs) posted as blobs.
  • Ordering: DA consensus provides canonical blob sequence.
  • Availability: Anyone can download blobs to verify state transitions.
  • No Validation: DA layer doesn't check if our state transitions are correct—just stores the data.
Execution Flow
1. Execute

User initiates workflow → W3 VM executes (token debit, orchestration, attestation) → produces new state root.

2. Commit

Sequencer batches state diffs + attestations → posts blob to Celestia/EigenDA → gets blob commitment back.

3. Verify

Other validators download blob → re-execute transitions → verify state root matches. Mismatch triggers fraud proof.

4. Finalize

After challenge period (~7 days), state is considered final. No L1 enforces this—it's social consensus among W3 validators.

Tokenomics

What W3 Token Pays For (In Our VM)

●
Workflow execution fees
●
Validator staking (orchestration + VM)
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Governance votes (protocol upgrades)
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Slashing penalties (fraud-proof verified)
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Gas for VM operations (internal)
●
Bridge fees (to other ecosystems)

What TIA/EigenDA Pays For (DA Layer)

●
Blob storage fees (per byte/kilobyte)
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DA layer consensus (Tendermint/EigenLayer)
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Data availability sampling infrastructure
●
Blob retrieval for light clients
Token Demand
W3 token native to our VM. Validators + users must hold W3. Bridging to Ethereum/others requires custom bridges.
Value Capture
W3 captures protocol value. TIA/EigenDA captures DA fees (paid by protocol/sequencer, not end users).

W3 Token Native to Our VM, DA Fees Separate

Trade-offs

What You Get

  • Low Cost: 10-100x cheaper than Ethereum L1 (no execution, just data posting).
  • High Throughput: DA layers designed for blob storage, not complex execution.
  • Modular: Decouple consensus from execution—focus on workflow protocol.
  • Flexibility: Can switch DA providers (Celestia → EigenDA) without protocol rewrites.
  • Light Clients: Data sampling lets clients verify without full downloads.

What It Costs

  • Optimistic Security: ~7 day challenge period before finality (vs. 13min on Ethereum).
  • Fraud Proof Complexity: Must design + implement fraud-proof circuits for disputes.
  • Social Consensus: No automatic slashing—bad validators excluded via offchain coordination.
  • Liveness Dependency: If DA layer halts, attestations can't be posted (no fallback).
  • Ecosystem Immaturity: DA-only settlement is experimental; fewer tooling/infrastructure.