Vitalik Buterin Shares Ethereum Quantum Upgrade Plan as Mutuum Finance Enters Phase 3 Roadmap

Vitalik Buterin has outlined a roadmap to strengthen Ethereum against future quantum computing threats, highlighting key areas of the protocol that require upgrades. At the same time, Mutuum Finance has entered Phase 3 of its published development roadmap as it continues building its decentralized lending protocol on Ethereum.

Ethereum Sets Out Quantum Resistance Priorities

Vitalik Buterin shared a quantum resistance roadmap for Ethereum on Thursday, outlining the key parts of the network that would need upgrades to prepare for future quantum computing risks. He identified four main areas: validator signatures, data storage, user account signatures, and zero-knowledge proofs.

For validator signatures, Buterin proposed replacing Ethereum’s current BLS system with quantum-safe, hash-based signatures. He emphasized the importance of selecting the right hash function, stating, “This may be ‘Ethereum’s last hash function,’ so it’s important to choose wisely.” 

On the data side, he suggested moving away from the current KZG system used for storing and verifying blobs and transitioning to STARK-based solutions, which are considered resistant to quantum attacks.

User accounts are another area targeted for change. Ethereum currently relies on ECDSA signatures, and Buterin said the network would need to support alternative, quantum-resistant signature schemes in the future. 

Finally, he addressed zero-knowledge proofs, noting that quantum-safe proofs are expensive to run onchain. To manage costs, he proposed recursive signature and proof aggregation, where “a single master proof” could verify thousands of signatures or proofs at once, keeping gas usage closer to current levels.

Mutuum Finance Enters Phase 3 of Roadmap

Mutuum Finance is a lending and borrowing platform with its native ERC-20 token, MUTM, priced at $0.04. The project has raised over $20.6 million in funding from more than 19,000 holders of its token. Mutuum Finance is currently in Phase 3 of its development out of a total of four phases. Nearly half of the Phase 3 roadmap tasks have already been completed successfully, including the completion of core smart contract development, completion of DApp front-end development, and the launch of a functional demo version.

The beta app is currently running on the Sepolia testnet, where users are testing the core features of its lending and borrowing protocol, with ETH, USDT, WBTC, and LINK tokens available in the current version. To date, more than $150 million in testnet TVL liquidity has been crossed.

Staking and Dividends

By supplying USDT or another crypto asset like ETH into its protocol, users receive mtUSDT or mtETH in return. Those mtTokens are evidence of their deposit. While lending in its crypto protocol gives passive income based on its APY (Annual Percentage Yield), which represents the yearly return earned on deposited assets, those mtTokens can also be staked. Staking on the platform gives users MUTM tokens as a share in dividends in addition to the yield earned from APY.

Those MUTM tokens that stakers receive will be bought from the open market using fees generated by the protocol, which may potentially increase the strength of the token over time.

While currently the focus remains fully on the development of its protocol, according to the whitepaper and the information provided there, the team is planning to introduce a native stablecoin in the future to add additional utility to the ecosystem, with multichain expansion also included in the long-term development plan.

Token Allocation

In total, there are 4 billion tokens. A part of the supply is allocated for community incentives and partnerships. Within community incentives, Mutuum Finance has launched giveaway campaigns and leaderboard bonuses. For partnerships, 5% of the total supply, equal to 200 million tokens, is allocated to enable strategic collaborations, technological integrations, ecosystem expansion, and joint development initiatives.

Since Mutuum Finance is built on the Ethereum network, its quantum upgrade could also positively impact Mutuum Finance in the future, while the project is currently in the development phase and continues its progress with plans to launch on mainnet.