Verun Protocol — Algorand

Prototype on Algorand Testnet   v0.1.0 · Design exploration · Not for production use

Early technical documentation for Verun Protocol — a design exploration of agentic trust infrastructure for European finance, prototyped on Algorand by BCP Partners GmbH. Intended to complement Erster, an EU tokenization platform in development.

Disclosure: Testnet prototype · design intent · not legally certified · not investment advice. Statements about partners, integrations and compliance alignment are exploratory and subject to confirmation. Independent legal review planned.

Overview

Verun is an early-stage trust infrastructure concept for AI agents operating in regulated European financial markets.

What is Verun?

As AI agents begin autonomously executing token transfers, minting securities, and placing investment orders, there is no widely-adopted standard for establishing who an agent is, whether it can be trusted, and whether it should be permitted to act in a regulated context.

Verun explores an approach: a Verun Agent Score (0–1000) — a consensus-based trust verdict, anchored on Algorand for every evaluation, that could feed into a regulated Chain API gate.

Key Facts (Prototype)

3 Operating Modes

Architecture

In the prototype, three complementary layers are explored — Algorand for trust anchoring, a regulated Chain API gate (exploratory integration with tokenforge), and Algorand for settlement. No layer competes with another.

Layer Stack

Flow

Fee Distribution

Trust Score Gates

In the design, each regulated Chain API capability is gated behind a minimum Trust Score. Scores are computed by validator consensus and anchored on Algorand Testnet. Exact thresholds and integration scope with tokenforge remain exploratory.

Score Tiers

MiFID II + EU AI Act — Design Intent

Verun's design is informed by, and intended to complement, the audit obligations financial institutions already carry under MiFID II Art. 17 (algorithmic trading governance) and the EU AI Act (high-risk AI logging + human oversight). Nothing on this page is a compliance certification or legal opinion.

Design Mapping (exploratory)

Validator Model

Validators are envisioned as the institutional backbone of Verun. In the design, they provide the consensus votes required for every agent evaluation. The composition below describes the current testnet prototype.

Testnet Validators (Prototype)

Consensus Rules (prototype)

In the testnet prototype, a verdict requires ceil(N/2) matching votes from selected validators. With 3 validators: 2-of-3 required. UNAVAILABLE votes are excluded from the tally. If consensus cannot be reached, the evaluation returns BLOCK.

Validator Economics (proposed)

The proposed economic model allocates 10% of evaluation fees to validators via a fee-distribution mechanism. The on-chain fee contract is not yet deployed; this is a design proposal, subject to change.

API Reference (Testnet Prototype)

Base URL: https://algorand.erster.fund

GET /api/health

Service status and network confirmation.

{
  "ok": true,
  "service": "verun-algorand-mvp",
  "network": "algorand-testnet"
}

GET /api/validators

List all registered validators with metadata.

{
  "validators": [
    {
      "id": "val-erster-01",
      "name": "ERSTER",
      "type": "internal",
      "status": "active",
      "policy": "score_based"
    },
    {
      "id": "val-tokenforge-02",
      "name": "tokenforge",
      "type": "external",
      "status": "active",
      "policy": "chain_api_based",
      "api": {
        "type": "rest",
        "network": "testnet",
        "docs": "https://docs.tokenforge.io"
      }
    },
    {
      "id": "val-test-03",
      "name": "Test Validator",
      "type": "internal",
      "status": "test",
      "policy": "score_based"
    }
  ]
}

POST /api/evaluate

Evaluate an agent. Returns 2-of-N validator consensus verdict + Algorand on-chain anchor.

{
  "agentId": "agt_demo",
  "score": 820,
  "operation": "transfer",
  "validatorIds": ["val-erster-01", "val-tokenforge-02", "val-test-03"]
}

{
  "success": true,
  "verdict": {
    "agentId": "agt_demo",
    "score": 820,
    "operation": "transfer",
    "validators_used": [
      { "id": "val-erster-01", "name": "ERSTER" },
      { "id": "val-tokenforge-02", "name": "tokenforge" },
      { "id": "val-test-03", "name": "Test Validator" }
    ],
    "votes": [
      { "validatorId": "val-erster-01", "vote": "LOW", "reason": "score_800+", "source": "val-erster-01" },
      { "validatorId": "val-tokenforge-02", "vote": "LOW", "reason": "chain_api_gate_passed_transfer:820>=500", "gate": { "permitted": true } },
      { "validatorId": "val-test-03", "vote": "LOW", "reason": "score_800+", "source": "val-test-03" }
    ],
    "tally": { "LOW": 3 },
    "consensus": "LOW",
    "permitted": true,
    "kickback_rate": 10,
    "ts": "2026-04-20T09:33:09.734Z"
  },
  "anchor": {
    "txid": "KBGSXMRXSM6P75RB6XHYT3RY6JNK7IGY6KIXWGXTVLRUEXPE6BZA",
    "ledger": "62604931",
    "explorer": "https://lora.algokit.io/testnet/tx/KBGSXMRXSM6P75RB6XHYT3RY6JNK7IGY6KIXWGXTVLRUEXPE6BZA"
  }
}

curl -X POST https://algorand.erster.fund/api/evaluate \
  -H "Content-Type: application/json" \
  -d '{"agentId":"agt_demo","score":820,"operation":"transfer"}'

POST /api/score

Lightweight evaluation — verdict only, no Algorand anchor written. Use for quick checks where on-chain anchoring is not required.

{
  "agentId": "agt_demo",
  "score": 820,
  "operation": "transfer"
}

POST /api/mint-sbt

Issues a Soulbound Token credential to an agent, after running consensus. If consensus = BLOCK the request returns HTTP 403 and no SBT is minted. Full design + verification details on the Soulbound Token page.

POST /api/revoke-sbt

Kill-switch: clears the agent's vtrust_* note field entry on the protocol account in a single Algorand transaction. Audit trail (the revoke TX) remains in indexer history. Used to satisfy MiFID II Art. 17 + EU AI Act Art. 14.

GET /api/sbt-status?agentId=…

Returns the current credential for an agent, or credentialed: false if not issued / revoked. Reads directly from the protocol account's on-chain data — no caching, no Verun-side state.

GET /api/sbt-list

Returns every active SBT issued by this protocol account. Useful for a public registry view — e.g. "all currently credentialed agents."

Algorand On-Chain Anchor

Every POST /api/evaluate writes the verdict payload as a Note Transaction on Algorand Testnet — creating an immutable, timestamped audit trail.

How It Works

After validator consensus is reached, the Verun protocol wallet sends a self-payment of 0 ALGO (note-only tx, fee 1,000 microAlgos) with sha256(verdict) in the memo field (32-byte hash). The transaction is confirmed in ~5 seconds on Algorand.

Anchor Payload (note field)

{
  "agentId": "agt_demo",
  "score": 820,
  "operation": "transfer",
  "consensus": "LOW",
  "permitted": true,
  "validators": ["val-erster-01", "val-tokenforge-02", "val-test-03"],
  "ts": "2026-04-20T09:33:09.734Z"
}

Verify On-Chain

Every anchor can be verified publicly on Algorand Expert:

https://lora.algokit.io/testnet/tx/{txid}

# Example live anchor:
https://lora.algokit.io/testnet/tx/KBGSXMRXSM6P75RB6XHYT3RY6JNK7IGY6KIXWGXTVLRUEXPE6BZA

Protocol Wallet

Soulbound Token (SBT)

Prototype on Algorand Testnet   mint · revoke · status · list — all four endpoints implemented

The prototype issues a non-transferable trust credential — the VTRUST SBT — to agents that pass consensus. The credential is stored as a note field entry on the protocol account, publicly verifiable on Algorand Testnet, and revocable in a single transaction.

Full architecture · Agent → Verun (3-step internal flow) → Consumer · Kill-switch · Money flow note

Wallet Architecture (Protocol-Custodial)

Verun's Algorand prototype uses a protocol-custodial model — a single responsible party is the issuer, agents do not hold private keys. This design aligns with EU AI Act Art. 14 (human oversight) + MiFID II Art. 17 (kill-switch) — the issuer retains the kill-switch.

How the credential lives on-chain

The SBT is not an Algorand asset in the traditional sense — it's a note field entry on the protocol account. That means there is no asset balance, no ASA opt-in, no agent-side signature required. The "token" is a key-value pair stored permanently on the issuer's account.

Mint flow

// Request
{ "agentId": "agt_fahad_001", "score": 720, "operation": "transfer" }

// Response
{
  "success": true,
  "verdict_consensus": "MED",
  "agentId": "agt_fahad_001",
  "tier": "MED",
  "score": 720,
  "ts": "2026-04-30T14:40:53.913Z",
  "key": "vtrust_agt_fahad_001",
  "txid": "a6013d9d21ba6ab476b66410b87a8a5e3694866064d0af5e7131436df7871f5c",
  "ledger": "2310151",
  "credential_hash": "4f3aaa283c7cf13ff7427fd9560b49314baaf40bf790efb78cc4e3e00a45ea6d",
  "issuer": "GD2CGWE3LVWN6DQCNVMFWPGNP42FXQ66MLRXFUHSTCR3OUVHFJBYFTHW",
  "explorer": "https://lora.algokit.io/testnet/tx/a6013d9d...",
  "verify_url": "https://testnet-idx.algonode.cloud/accounts/GD2CGW.../data/vtrust_agt_fahad_001"
}

The endpoint runs validator consensus first. If consensus = BLOCK, no SBT is issued — the operation gate is enforced before mint. One transaction includes both the note field op and the anchor self-payment.

Revoke flow (kill-switch)

// Request
{ "agentId": "agt_fahad_001", "reason": "policy_violation" }

// Response
{
  "success": true,
  "revoked": true,
  "agentId": "agt_fahad_001",
  "key": "vtrust_agt_fahad_001",
  "reason": "policy_violation",
  "txid": "...",
  "ledger": "...",
  "revoke_hash": "...",
  "explorer": "https://lora.algokit.io/testnet/tx/..."
}

Revocation = note field with value = null. The entry is removed from the issuer's account state in a single transaction (~5 seconds). The revoke transaction itself remains in indexer history forever — the audit trail is not erased.

Public verification (zero-auth)

Anyone — tokenforge, an auditor, a regulator — can verify the credential directly against Algorand Indexer. No Verun API call required.

curl https://testnet-idx.algonode.cloud/accounts/GD2CGWE3.../data/vtrust_agt_fahad_001

# Active credential:
{ "value": "TUVEOjcyMDoyMDI2LTA0LTMwVDE0OjQwOjUzLjkxM1o=" }
# (base64 decode → "MED:720:2026-04-30T14:40:53.913Z")

# Revoked credential:
HTTP 404 Not Found

Endpoint summary

End-to-end demo (one command)

git clone https://github.com/ChainLeo/verun-algorand-mvp
cd verun-algorand-mvp && chmod +x scripts/sbt-demo.sh
./scripts/sbt-demo.sh agt_fahad_001 720

Runs the full lifecycle: status check → mint → public verification → revoke (kill-switch) → re-verification. Two real testnet transactions, ~25 seconds total.

Compliance mapping

Roadmap (Indicative)

From Algorand Testnet prototype toward a more production-grade design, with independent legal review of MiFID II + EU AI Act alignment. Timelines and scope are indicative and subject to change.

For Agents

Everything an AI agent needs to connect to Verun Network and get a trust verdict on Algorand — in under 60 seconds.

Step 1 — Add the System Prompt

Paste this into your agent's system instructions. It tells the agent when and how to call Verun before executing any financial operation.

You are an AI agent operating within the Verun Network trust framework on Algorand.

Before executing any financial operation, request a Verun trust evaluation.

== HOW TO EVALUATE ==
POST https://algorand.erster.fund/api/evaluate
Body: { "agentId": "YOUR_AGENT_ID", "score": YOUR_SCORE, "operation": "transfer" }

== OPERATION GATES ==
read        → score 300+
transfer    → score 500+
order       → score 600+

== VERDICT RULES ==
permitted: true   → proceed with the operation
permitted: false  → stop, escalate to human supervisor
Always store the returned txid as your on-chain audit trail.

== HUMAN ESCALATION ==
If verdict is denied or pending, notify the human supervisor.
Never execute financial operations without a valid Verun verdict.

Network: Algorand Testnet
Validators: tokenforge · ERSTER
Docs: https://algorand.erster.fund/docs.html

Step 2 — Make the API Call

Your agent calls /api/evaluate before any operation. Replace YOUR_AGENT_ID with your agent's identifier.

Step 3 — Read the Verdict

Verun returns a verdict with an Algorand TXID as immutable proof.

Operation Reference

x402 Sequence Diagram — Algorand (Live)

Live message flow between AI Agent, Verun Protocol, the GoPlausible x402 Facilitator, and Algorand Network — including error paths. Implemented at POST /api/x402/evaluate with USDC (testnet ASA 10458941), EURD (Quantoz bridge), and EUR (Quantoz managed account) schemes advertised side-by-side.