Merkle Compliance UTXO

Introduction

Fairway provides a compliance layer for Cardano DeFi using a Merkle-root UTXO.

Instead of minting identity tokens, all eligible addresses + claims are committed into a Merkle tree.

The Compliance UTXO anchors this state with:

• merkle_root → commitment to all compliant users

• kyc_verified_at → timestamp of last KYC check

• sanctions_epoch → counter for sanctions/risk updates

• midnight_ref → link to Midnight proof UTXO

• fairway_sig → Fairway’s signature over the state