Newton Protocol: A Verifiable On-Chain Automation Layer

In the Web3 landscape, challenges like blockchain ecosystem fragmentation, capital inefficiency, and a lack of trust in automation persist. Newton Protocol addresses these by introducing a verifiable automation layer for the on-chain economy. By leveraging Trusted Execution Environments (TEEs) and Zero-Knowledge Proofs (ZKPs), Newton ensures that delegated agent actions align with user-defined rules. This article covers Newton’s overview, team and funding background, operational mechanism, and interaction guide.

What is Newton Protocol?

Developed by Magic Labs and the Magic Newton Foundation, Newton Protocol is an infrastructure designed to enable verifiable automation for the on-chain economy. It ensures that every agent action operates within user-defined boundaries, cryptographically verified through TEEs and ZKPs, eliminating the need for blind trust. This transforms user, developer, and operator interactions in decentralized systems, paving the way for agentic finance, programmable commerce, and a user-driven on-chain economy.

Background

Founded in May 2018, Magic Labs has simplified Web3 access by eliminating seed phrases and browser extensions through embedded wallets. Its SDK integrates passwordless authentication, non-custodial wallet-as-a-service, and customizable wallet UIs, compatible with over 30 blockchains. By April 2025, Magic supported over 50 million wallets for platforms like Polymarket, WalletConnect, Helium, and Immutable.

• Team:
  • Sean Li (CEO): Co-founded Kitematic, acquired by Docker in 2015, evolving into Docker Desktop, used by millions of developers monthly.
  • Jaemin Jin (Chief Product Officer): Former Uber software engineer (2015–2018) and Apple Siri team member for 10 months.
  • The team includes talent from Coinbase, OpenSea, and Alchemy.
• Funding: Magic Labs raised approximately $90 million:
  • July 2021: $27 million Series A, led by Northzone, with Tiger Global, Placeholder, SV Angel, Digital Currency Group, CoinFund, and Cherubic. Angel investors included Reddit co-founder Alexis Ohanian, former Coinbase CTO Balaji Srinivasan, and others.
  • May 2023: $52 million strategic round, led by PayPal Ventures, with Cherubic, Synchrony, KX, Northzone, and Volt Capital.

How Newton Operates

Newton Protocol involves users, developers, operators, and validators, with key components like smart accounts, zkPermissions, and an execution coordinator. Its workflow ensures secure, verifiable automation:

1. Agent Development: Developers build automation agents as containerized applications using Newton SDKs and zkML frameworks, defining logic, constraints, and interfaces for user and protocol interactions.
2. User Intent Submission: Users submit automation intent orders specifying tasks and constraints.
3. Order Matching: The execution coordinator matches user intents with operators via a limit order book mechanism.
4. Task Execution: Operators execute tasks off-chain within TEEs or ZKP circuits (e.g., ML models), generating TEE attestations and ZKPs for verification.
5. Verification and Execution: On-chain validation of TEE attestations and ZKPs ensures compliance. Approved actions are executed via restricted session keys, updating states. Non-compliant tasks are rejected, with potential economic penalties for operators.
6. Reputation System: Operators’ reputations are updated based on execution history, success rates, and user feedback, incentivizing reliable performance.

Core Components

1. Smart Accounts: Built on ERC-4337 and EIP-7702 standards, these ensure wallet security and enable cryptographically secure, revocable permissions. Users delegate tasks to agents without relinquishing private key control.
2. zkPermissions: A ZKP-based permission system binding each session key to a zero-knowledge circuit encoding automation rules, including:
   • Data-Driven Conditions: Execute trades based on on-chain sentiment, golden cross signals, slippage, liquidity, or external data (e.g., CPI inflation below 2%).
   • Risk Checks: Volatility-gated execution, oversold buy triggers, or spread-based limit orders.
   • Limits: Caps on daily transaction frequency or volume, with baseline permissions like spending limits, expiration dates, and token allowlists.
3. Execution Coordinator: A decentralized task marketplace matching user intents with operators and verifying execution accuracy.

By combining TEE efficiency with ZKP verifiability, Newton transforms automation into a trust-minimized on-chain primitive, enabling AI-driven DeFi and fostering a programmable, user-driven ecosystem.

Interaction Guide

To engage with Newton Protocol’s testnet and ecosystem, follow these steps:

1. Earn Points via Rewards Portal:
   • Play games like dice rolling or minesweeper.
   • Complete social tasks (side quests) to earn rewards.
2. Register for Newton App:
   • Complete agent tasks. Note: Currently, the app supports fund deposits but not withdrawals, so avoid depositing large amounts.
3. Engage on Social Media:
   • Post high-quality content on X about Newton. The Newton Foundation allocates 0.75% of its token supply to the Kaito community: 0.5% for quality posts and successful referrals, and 0.25% for community milestones (stakers, holders, and posters).

Conclusion

Newton Protocol tackles Web3’s fragmentation, inefficiency, and trust deficits by providing a verifiable automation layer. Backed by Magic Labs’ expertise and robust funding, its integration of TEEs, ZKPs, and smart accounts empowers secure, user-driven automation. By participating in its testnet, users can explore this innovative infrastructure, contributing to the evolution of DeFi and the programmable economy. Start interacting today to shape the future of Web3