AMA with Dmitry Gerasimov, March 26, 2026

Hello everyone! I’m Dmitry Gerasimov, CEO of Cellframe, and welcome to our regular AMA session. Let’s start with the first question you sent in advance.

The Cellframe blockchain implements a mechanism that allows encryption algorithms to be quickly replaced. Can you tell us more about how this works?

The idea is actually quite simple. Every cryptographic primitive or data structure includes a dedicated byte that specifies which algorithm is being used.

For example, in a digital signature, there is an identifier embedded directly in the signature that tells the software which algorithm to apply. The same principle is used in wallet addresses.

Because of this, we don’t really “replace” algorithms, we extend the system by adding new ones. When we introduce an updated algorithm, we simply assign it a new identifier, allowing it to coexist with previous versions.

In version 6.0, we also introduced an additional flag that allows us to use different variations of the same algorithm. This is particularly important for ML-DSA, the standardized version of the CRYSTALS-Dilithium algorithm approved by NIST, which supports multiple security levels.

For example, we currently use a legacy version of a CRYSTALS-Dilithium signature that was developed several years ago. As newer, standardized versions become available, we can introduce them by adding new identifiers, without breaking compatibility with existing data.

That’s essentially how the system evolves: by adding new algorithm types rather than replacing old ones.

The team is planning to launch native WASM contracts on the Cellframe mainnet. How will this be implemented from a technical perspective? How will WASM code be integrated into a UTXO-based blockchain?

First of all, there is no fundamental problem with implementing smart contracts on a UTXO-based blockchain: it simply requires a different approach to how contract addresses are handled.

In fact, we’ve already laid the groundwork for this. As I mentioned earlier, wallet addresses in Cellframe include an encryption type identifier, as well as a version identifier, which can be extended into a type identifier.

At the moment, we already support multiple address types, for example, standard addresses and shared wallet addresses. Adding support for smart contracts is simply a matter of introducing a new address type.

Most of the challenges around UTXO are not related to WASM itself. They arise when trying to integrate EVM-based solutions, since Ethereum uses an account-based model, which is fundamentally different. That said, this problem has already been addressed by projects like QEVM, which provide compatibility layers that translate between account-based logic and UTXO systems.

As for WASM specifically, the technical foundation is already in place. The Cellframe SDK, which the node itself is built on, is fully compilable to WASM starting from version 6.0 (currently in release candidate stage).

This means it becomes possible to run a Cellframe Node directly in the browser. More broadly, any application built on the Cellframe SDK can also run in a browser environment. For example, this enables web wallets, browser extensions, and even streaming applications using our decentralized protocols and encryption.

In practical terms, we’ve already completed a significant part of the work required for WASM integration: roughly half. This brings us much closer to delivering full support for native WASM smart contracts on the network.

Not long ago, the team updated the Cellframe design of the bridge. How do cross-chain transfers work now, and what role do bridge wallets play in them?

In short, the main goal of the update was to improve security.

Previously, the bridge mechanism relied on minting and burning tokens directly. This meant that bridge nodes effectively controlled token issuance through certificates stored in their wallets.

Now the approach has changed. Instead of minting and burning tokens freely, bridge nodes operate through special shared bridge wallets. These wallets are controlled by consensus, which means that no tokens can be released without proper validation by the network.

This significantly reduces risk. Even if a bridge wallet were compromised, an attacker would only gain access to the funds currently held in that wallet: not the ability to mint unlimited tokens. When additional liquidity is needed, tokens can be minted into the bridge wallet in a controlled and transparent way.

All of this is fully verifiable on the blockchain: you can track how many tokens are issued and how they move through the system.

As for the broader role of the bridge, part of its original functionality, particularly for transfers between native Cellframe networks, is gradually being phased out. We are moving toward a peer-to-peer model, where cross-chain transfers between Cellframe networks can happen directly, without relying on bridge nodes.

In the future, if we achieve sufficiently decentralized infrastructure for external networks like Ethereum and BSC, we may further reduce the role of the bridge and move toward a fully decentralized cross-chain model overall.

The team released a major update to the Cellframe exchange, but activity remains low. Do you have any plans to introduce market making and attract liquidity to the DEX?

Yes, we do have these plans, and most of the groundwork is already in place.

At the moment, we are waiting for our partners to complete an arbitrage solution that will connect order books from centralized exchanges with our DEX. Once this integration is ready, it should significantly increase activity on the platform. We expect this to happen soon: potentially as early as next week. We are actively working to launch this as quickly as possible.

As for liquidity, we also have a broader strategy in place. With the upcoming 6.0 release, we plan to introduce the CF02 token format, which is designed to support liquidity provision and automated market making. There is also a possibility that some of these features may appear earlier, in version 5.8.

Overall, improving liquidity and boosting DEX activity is a key priority for us, and we expect to see noticeable progress in the near future.

How is the issuance of reward tokens for validators organized within the Cellframe network? What mechanisms are responsible for minting and distributing these tokens?

This follows a fairly standard approach for blockchain systems.

When a node proposes a new block, it includes a special base transaction that defines the reward. In other words, the reward tokens are minted at the moment the block is created.

During the consensus process, the network verifies that the reward amount is correct, neither higher nor lower than it should be. This reward is then locked within a special conditional transaction.

After the block is finalized, nodes that participated in the consensus can claim their rewards by creating a transaction based on that base transaction. The condition checks whether the node actually took part in signing the block.

If the node’s signature matches the one recorded in the block, the condition is satisfied, and the reward can be claimed.

In short, validators mint and distribute rewards themselves as part of the consensus process.

What is the status of the investigation into the illegitimate m-token incident? When it is completed, will honest validators receive compensation?

Compensation will be provided once those responsible for the incident are identified.

In parallel, we’ve been working on a technical solution to address the issue. Initially, we had to apply broad restrictions at the address level, but this approach was not ideal. The goal was to develop a more precise mechanism that can distinguish between legitimate and illegitimate unspent transaction outputs, allowing us to block only compromised funds while preserving valid ones.

This turned out to be a complex task and took more time than expected. However, the solution is now essentially complete and currently undergoing testing. The latest build was submitted to QA today.

If everything goes as planned, we expect it to be ready in the near future, potentially as early as next week.

The crypto market is currently going through a challenging period. How are the project's and the ecosystem's development plans being adjusted in light of the current situation?

In response to the current market conditions, we are planning to launch a new network called the Service Network, or simply “Service”. It will be built on top of the Cellframe backbone.

This network will be visible in the blockchain and in the Cellframe wallet. Importantly, it will not have its own native token. Instead, it will operate using existing tokens such as CELL, KEL, and potentially others, depending on the service.

The network will not impose restrictions on T-dApps deployment. Any type of decentralized application or service can be launched within it.

We are planning to introduce several new services in this framework, including AV restreaming, CDN, a conference call service, a business messenger, and decentralized inference services. There may also be additional services in the future.

For example, we already have a fully rewritten VPN service under KelVPN, and components of that infrastructure can also be reused for services like AV restreaming and CDN within the business messaging ecosystem.

All of these services are designed to implement our concept of a service-oriented blockchain. The key idea is that blockchain should be used as infrastructure behind real software services.

In this model, liquidity is generated organically through real usage. Users will not necessarily even realize they are interacting with blockchain-based systems, the services will simply work as standard SaaS products.

For example, a company might subscribe to project management tools, video conferencing, or communication services. When payments are made, a portion of those payments will be used to purchase tokens from the market. This creates continuous buy-side pressure.

Unlike a one-time purchase model, this mechanism operates continuously, generating ongoing demand for tokens through real service usage.

This entire flow will be integrated into DEX-based market-making and automated token processing systems. Market making will be introduced first to support these liquidity flows.

The goal is to create sustainable, usage-driven tokenomics that are independent of market cycles. Even in a bear market, users continue to pay for services they rely on, regardless of token price or market sentiment.

This approach helps decouple real utility from speculative cycles, creating more stable demand.

Initially, I considered introducing separate tokens for these services, but that is no longer the direction. Instead, we will focus on strengthening existing tokens and channeling liquidity through them.

In addition, third-party developers will be able to deploy their own services on this network. They will need to build Cellframe node plugins for their T-dApps, which can then be executed across the ecosystem.

For masternode operators, this simply means adding the Service Network to the list of supported networks. While masternodes in this network will not receive additional block rewards, they will be able to provide infrastructure for services and earn income based on those services.

This effectively creates an additional revenue stream for node operators.

I think I will need to write a separate article explaining this in more detail.

Given the growing quantum threat, do you plan to establish new partnerships to strengthen the quantum resistance of your own infrastructure?

If we find relevant and valuable partnerships, then yes. At the moment, however, we believe our current level of quantum resistance is sufficient.

That said, we remain open to any form of collaboration if it can meaningfully strengthen or complement our existing approach.

You recently announced the revival of the Dapcash project — could you tell us a bit more about it? What is it, and how is it connected to the Cellframe project?

Yes, I was initially planning to launch it, but given the current market conditions, I’m still reconsidering the timing. At this stage, I would need to secure significant funding and strong partnerships in order to move forward with it.

Dapcash is essentially a playground or sandbox environment where new projects can launch their own networks without participating in the auction system. In this model, users would simply stake tokens, and that would be sufficient to gain the right to deploy and operate their own network within the ecosystem.

The project is designed around Chipmunk Ring signatures, enabling fully private transactions within these networks. In essence, it is intended to be an anonymous blockchain environment, similar in spirit to systems like Zcash or Monero, but with quantum-resistant cryptography as a core feature.

That is the main idea behind it.

Ethereum has announced the launch of a new standard, ERC-8183, for commercial transactions between AI agents, which closely resembles Cellframe's conditional transactions. Does that mean conditional transactions are also suitable for AI agent operations?

Yes, conditional transactions are fully ready for AI agent use. In fact, we’ve had this capability for several years already.

We were effectively ahead of this trend, as the underlying mechanisms were implemented in advance. It is quite straightforward to run AI agents on top of our system, especially within the upcoming service network designed specifically for such use cases.

In addition, this architecture allows for decentralized AI inference, meaning AI agents can be executed and coordinated across network nodes in a fully distributed way.

Could you tell us a bit about the origin of the slogan "We are CELL! We are here!", which has already become an integral part of your AMA sessions?

Interestingly, I only came up with the first part of the slogan — “We are CELL”. The full version, “We are CELL! We are here!”, was later shaped together with one of our former partners we worked with several years ago.

So the origin is actually quite simple: it started as an improvisation and gradually evolved into the phrase the community now recognizes.

That’s all for today. Thank you for your attention.

Next month is going to be a busy one, so stay tuned, we’re preparing a number of new releases and updates for Cellframe holders and ecosystem participants.

We are CELL! We are here! See you next time.