I brainstormed a type of currency similar to XMR based off of its ring signature rules and the traditional system of hawala , vice is greatly appreciated and constructive criticism
**Hundi** – A pure P2P cryptocurrency protocol recreating hawala's trust-based transfers on-chain with automatic Monero-style ring mixing for unbreakable privacy. Users specify only recipient hawaladar + amount; protocol auto-mixes with network decoys.
## Core Innovation
**One-click hawala**: Alice sends 100 USDC to Charlie via Bob (her contact). She inputs: `amount`, `bob.eth`, `secret="hundi42"`. Hundi auto-pulls 10 recent active hawaladars as decoys, broadcasts ring signature flooding the chain—transaction appears to ping the *entire* network. Bob propagates secret privately; Charlie receives value seamlessly.
## Technical Architecture
```
User Flow: amount → recipient → secret
↓
[Auto] RingSig(10 recent hawaladars + Bob) → Mempool flood
↓
Private: Bob → Dana → Charlie (secret chain)
↓
On-chain: Charlie claims amid network noise
```
**Key Components:**
- **AutoDecoy Pool**: Recent 1k rep NFT minters (24h lookback) – no user selection
- **Fixed Ring Size**: 11 participants (self + recipient + 9 decoys) for uniform tx fingerprint
- **ZK Relays**: Semaphore proofs hide intermediate hops
- **HTLC Backbone**: Atomic secrets + timelocks prevent stuck funds
## Production Solidity Contract
```solidity
// Hundi.sol - Deploy Monad/Ethereum
pragma solidity ^0.8.20;
import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
import "@openzeppelin/contracts/token/ERC721/ERC721.sol";
import "@zk-kit/protocols/semaphores/contracts/Semaphore.sol";
contract Hundi is ERC721("HundiRep", "HREP"), Semaphore {
uint256 constant RING_SIZE = 11;
uint256 constant LOOKBACK = 7200; // ~24h blocks
struct Transfer {
bytes32 commitment;
address recipientHawaladar;
uint256 amount;
address token;
bool settled;
}
IERC721 public repNFT;
mapping(bytes32 => Transfer) public transfers;
mapping(address => uint256) public repScore;
// USER CALL: Only needs recipient + amount
function sendHundi(bytes32 _commitment, address _hawaladar, uint256 _amount, address _token) external {
address[] memory decoys = getActiveHawaladars();
require(decoys.length >= RING_SIZE - 2, "Pool too small");
transfers[_commitment] = Transfer(_commitment, _hawaladar, _amount, _token, false);
IERC20(_token).transferFrom(msg.sender, address(this), _amount);
emit HundiSent(_commitment, _hawaladar, decoys);
}
// Auto-fetch recent active hawaladars
function getActiveHawaladars() internal view returns (address[] memory) {
// Implementation: Scan recent TransferCompleted events for unique msg.sender
// Return newest RING_SIZE-2 addresses + randomization
}
// Anonymous relay (ZK proof)
function relayHundi(uint256 _groupId, uint256 _nullifierHash, uint256 _signal, bytes32 _commitment) external {
verifyProof(_groupId, _nullifierHash, _signal); // Semaphore ZK
// Propagate secret privately to next hop
repScore[msg.sender]++;
_mint(msg.sender, repScore[msg.sender]);
}
// Final claim with secret
function claimHundi(bytes32 _commitment, bytes32 _secret) external {
Transfer storage t = transfers[_commitment];
require(keccak256(abi.encodePacked(_secret)) == t.commitment, "Wrong secret");
require(msg.sender == t.recipientHawaladar, "Not recipient");
require(!t.settled, "Already claimed");
t.settled = true;
IERC20(t.token).transfer(msg.sender, t.amount);
}
}
```
## Privacy Guarantees
| Metric | Hundi | Monero | Bitcoin |
|--------|--------|---------|---------|
| **Sender Anonymity** | Auto-ring 11 decoys | Ring signatures | None |
| **Route Privacy** | Network-wide broadcast | Output mixing | Public |
| **User Effort** | 3 inputs (amt/addr/secret) | Wallet default | Full exposure |
| **Gas Cost** | ~150k (ring) | N/A (native) | 21k (basic) |
## Network Effects
**Bootstrap**: Early users (your trading contacts) earn HREP NFTs → become decoys → attract more users
**Reputation**: NFT serial # = successful transfers; higher ID = trusted hawaladar
**Discovery**: P2P gossip (libp2p) shares active hawaladars; frontend indexes recent claims
**Offsets**: Hawaladars settle repeated business via direct swaps (your grid trading strength)
## Deployment Roadmap
```
Phase 1: Testnet (1 week)
└─ Remix IDE → Sepolia → Basic HTLC
Phase 2: Frontend (2 weeks)
└─ React + Rabby Wallet → 1-click UX
└─ OrbitDB for hawaladar discovery
Phase 3: Mainnet (Month 1)
└─ Monad deployment (<$0.01 fees)
└─ Airdrop 1M HREP to first 1000 users
Phase 4: Scale (Q2 2026)
└─ Cross-chain (LayerZero bridges)
└─ Mobile app (React Native)
```
## Economic Model
```
Fees: 0.3% → HREP stakers (protocol owned)
Rep NFTs: Soulbound, tradeable after 100 tx
Burn: 10% fee on bad claims (slashing)
Incentives: 50% fees → ring liquidity rewards
```
