Loki Network ([low-kee]; LOKI) is a decentralized communication project focused on providing privacy and autonomy for its users. It features messaging and a means of browsing the internet anonymously while utilizing its own cryptocurrency as a financial medium for network incentivization. Loki utilizes a hybrid approach with proof-of-work (PoW) and proof-of-service (PoS) consensus in the establishment of discrete service layers. These layers form a cohesive system designed to allow users to interact anonymously as they obtain information online, communicate and exchange value with one another.

The Loki Network is based on Monero’s code which affords the network the use of stealth addresses and Ring Confidential Transactions (RingCT) to assure a high level of privacy. Like Monero, it operates with a dynamic block size, and has a ring size of 10. It also features the novelty of incorporating a network of service nodes as an answer to the difficulties that memory, disk space and bandwidth requirements present in the purely PoW network typical of CyptoNote protocol projects.

The role in PoW in the LOKI network acts the same as the majority of other cryptocurrencies and miners receive 45% of the block reward.



Proof of Service

Service nodes require the placement of a stake in LOKI be time-locked to be eligible to participate in the network. Nodes are selected sequentially for their share of the block reward (50%) as indicated by the length of time since they last received one. An additional regulating mechanism known as swarm flagging incentivizes nodes to identify peers that are not functioning cooperatively and as a group reinforce that the routing of messages and allocation of rewards is distributed as equally as possible. Service nodes are thereby able to to prove they’ve been behaving as expected and receive their share of the block reward.




The service nodes as a network allow for onion routing of internet data, however specific attention has been paid to addressing vulnerabilities related to centralized aspects of Tor and I2p. Loki Network instead proposes a new integration of these two methods dubbed the Low Latency Anonymous Routing Protocol (LLARP) which allows for the service nodes to route internet packets and support a larger range of internet protocols. Lokinet is a second layer solution which allows users of the network to browse internet without exposing their IP.

Loki messenger is the most basic application available on this layer, however Service Node Applications (SNApps) are possible and afford the possibility of censorship resistant communications-centric applications such as social media platforms or digital marketplaces.




In every Loki block, 5% of the reward is allocated for the purpose of network governance. This provides a steady flow of Loki that will be distributed amongst community projects, software developers, and integration teams. The plan in the future is to have 3.75% of the reward controlled by the Loki Foundation and 1.25% is controlled by the Service Nodes through the Loki Funding System.




Loki Network’s key premise is on supporting private connectivity between people everywhere, clearly evident in it having translated its whitepaper into seven other languages other than English. There is supplementary documentation detailing its cryptoeconomics as well as a proposed alteration to its economics in this analysis on the Loki Network website.

The project will coordinate funding for proposals through a collaborative voting system which gives stake to both the Loki Foundation and the Nodes in specific percentiles. These initiatives are funded through the remaining 5% of the block reward.

The community as a whole is engaged and characterized more by thoughtfulness than price discussion and memes. The team provides no-nonsense, regularly published development updates and has a series of difficult brain-teasing puzzles which grant those who successfully solve them with 1000 LOKI. Clues to the first puzzle are hidden in the HTML of their site.





Want to know more, or experience the Loki Network community firsthand?

Official website: https://loki.network/

Twitter: @loki_project

Discord: https://discordapp.com/invite/67GXfD6