Kanarai
The Energy L1 Chain for Secure Tradeable Energy Tokens
Why Now?
The missing link is not more devices — it's trusted coordination and settlement across asset owners, aggregators, utilities, ISOs, and regulators.
Fragmented Market Rules
North America is not one market. Participation models differ by ISO/RTO, state/province, and distribution utility requirements.
Inconsistent MRV
Telemetry is siloed, unverifiable across parties, and expensive to reconcile. No standard proof of delivery.
Dispatch & Safety Gaps
Unclear dispatch rights across stakeholders. Markets must encode who can dispatch what, when, and under which constraints.
Privacy vs Transparency
High-resolution load profiles reveal sensitive data. Systems need selective disclosure while remaining auditable.
Architecture Overview
Three-layer system linking physical execution to market settlement
VPP: Virtual Power Plant
The VPP is Kanarai's operational control plane that aggregates batteries, microgrids, EV charging, and flexible loads into portfolios that reliably deliver flexibility products.
- Portfolio dispatch under constraints (SoC, ramp, thermal, cycles)
- Gateway enforces safety constraints locally — cannot be overridden by market incentives
- Telemetry commitments posted per interval (hash + signature)
- Performance scoring bridges operations to settlement
Safety-First Invariant
Markets cannot force unsafe behavior.
The edge gateway enforces a Safety Constraint Set that cannot be overridden by market incentives. If dispatch violates constraints, the gateway executes the nearest safe action or refuses with a signed refusal record.
VPE: Virtual Power Exchange
The market layer enabling participants to price, match, clear, and settle flexibility products with cryptographically anchored MRV evidence.
Availability commitment for a time window
Net energy delivery/shift over a window
Response time and ramp rate commitment
Local reliability and backup duration
Settlement Flow
Collateral + penalties/slashing • Override-aware fairness • Periodic auctions (Phase 1) → Order book (Phase 2)
The Future of Decentralized Energy
A purpose-built blockchain transforming how energy is produced, traded, and settled.
Kanarai
The Energy L1 Chain
Decentralized Energy Intelligence
Purpose-built blockchain connecting distributed energy resources into a unified, programmable grid.
Asset-Aware Blockchain
On-chain digital twins for every battery, inverter, and microgrid with cryptographic identity.
AI-Powered Grid Management
Machine learning dispatch optimization with verifiable, tamper-proof settlement evidence.
MRV, Privacy & Security
Commit–Prove–Settle: Evidence-based verification without exposing sensitive data
Commit–Prove–Settle
On-chain hash commitments + signatures at interval close
Raw telemetry stored off-chain encrypted; selective disclosure for disputes
Settlement only final after evidence verified or dispute resolved
Security Model
DID/VC identity for all participants and devices
Gateway attestation and certification program
Signed override events with dispute window
Tokenomics
Two-token model designed for operational reliability, not speculation
KAN-GAS
Network Fee Token
Transaction fees and anti-spam economics. Used by everyone submitting transactions — validators, gateways, VPE, and VPP operations. Governance-controlled fee parameters for predictability.
KAN-FLEX
Performance Collateral Token
Performance collateral and rewards tied to verified energy delivery. Earned by proven delivery — lost by underperformance. Slashing enforces reliability and prevents phantom capacity.
Collateral Formula
Governance
Dual structure separating protocol stewardship from commercial operations
Kanarai Foundation
Non-Profit
- Protocol stewardship & standards
- Validator admission & governance
- Certification & accreditation
- Ecosystem grants & research
Kanarai ManagementCo
For-Profit
- VPP/VPE product development
- Edge gateway distribution
- Market adapters & integrations
- Enterprise SLAs & AoR operations