Unchained: How DoubleZero Built a Faster Internet for Crypto and Helped All DePIN (Ep. 914)
Host: Laura Shin | Guest: Austin Federa, Co-Founder of Double Zero
Aired: October 2, 2025

Brief Overview

In this episode, Laura Shin interviews Austin Federa, co-founder of Double Zero (00), a project building a high-performance, private global fiber network optimized for blockchains and other distributed systems. Instead of focusing solely on software optimization, Double Zero targets bandwidth and latency—the true bottlenecks for scaling blockchain to traditional finance-level utility. The result is a “parallel internet” for DePIN (Decentralized Physical Infrastructure Networks), with deeper implications for decentralization, Web3, and regulation.

Key Discussion Points & Insights

1. Background and Motivation ([01:00]–[05:29])

• Early blockchain bottlenecks were all about software; now, networks like Solana or Monad can support hundreds of thousands to a million transactions per second at the client level.
• Current Bottleneck: The public Internet is too slow/unstable due to indirect routing and no economic incentive to optimize for latency.
• Analogy: Sending a letter via FedEx vs. USPS; public Internet routes for cost, not speed, often creating unpredictable delays (“jitter”).

“The public Internet was never built for this. … There’s no incentive to route you directly. What they’re trying to do is route you at the lowest cost possible.”
— Austin Federa ([03:38])

2. What Double Zero Is & How It Works ([05:29]–[10:08])

• Double Zero is a private, dedicated fiber network contributed to by independent entities—not a single corporation.
  • At launch: 70 fiber links, 30 cities, 5 continents.
  • Contributors lease or own fiber and make it available to the network in exchange for tokens.
• Parallel Internet for High-Performance Distributed Systems: It appears as one homogeneous network, but it’s composed of many parties contributing physical bandwidth.
• Deterministic Latency: Crucial for traders and next-gen blockchain protocols—“now have more determinism in how they send a transaction.” ([10:49])

“We are building a parallel Internet for high-performance distributed systems like blockchains.”
— Austin Federa ([07:46])

3. Who Uses It & Why ([10:08]–[14:33])

• Primary Users: High-performance use-cases (trading firms, validators, RPC providers, etc.).
  • Traders: Need microsecond-level certainty for arbitrage and tight spreads.
  • Validators & RPCs: Can now scale up protocol parameters, e.g., block times and bandwidth.
• Network Entry: While only specialized contributors provide fiber/bandwidth, any validator (e.g., Solana, Aptos, Sui) can easily connect via a software tunnel from their data center.
• Co-existence with the Public Internet: Nodes use whichever network is fastest; does not replace traditional connectivity.

4. Applicability to Ethereum & Other Blockchains ([14:33]–[16:06])

• Ethereum: Most users/validators not primary target; ETH is designed to be intentionally slow for decentralization/security reasons.
• L2s & Fast L1s: More relevant—L2s want closer to real-time performance.
• Not for Everyone: Bitcoin miners unlikely to benefit; MEV systems and some L2s are a natural fit.

“Ethereum doesn’t really require anyone to use this—it is designed to be slow. … That’s the mission that that network wants to go in.” — Austin Federa ([14:54])

5. The 2Z Token: Mechanics & Incentives ([16:14]–[20:11], [22:20]–[25:35])

• Token Utility: 2Z is used for network access, paid by validators/users; contributors are rewarded in 2Z.
• Proof of Utility: Rewards distributed based on real-time, actual usage, not just capacity.
  • Uses the “Shapley Value” from economics—contributors are paid according to how much their contributions improve the network.
  • No passive emissions—must be actively used to earn rewards.
• Routing Rewards: If your fiber link is the only connection to a remote city (e.g., Perth), you earn more than a link in a crowded hub, and rewards split based on actual data in transit ([19:08]).
• Tokenomics: ~50% of tokens paid for access are burned; the rest is allocated to contributors.

“Capacity is only rewarded if there’s a paying customer … So each person in line would be rewarded proportional to their contribution over the public Internet performance.” — Austin Federa ([19:32])

6. Network Structure & Decentralization ([25:35]–[27:41])

• Organizational Analogy: Like a blockchain, where multiple validators run the network, here multiple independent fiber operators make up Double Zero.
• Malbec Labs: Primary software developer/organizer, but does not own or run any fiber; Austin is with the foundation, not Malbec Labs.
• Decentralized Operations: The network only exists because others show up and supply real-world bandwidth.

“It really is that exact same idea where the network is run by the people who choose to show up and contribute to it. It’s not run by the company developing the software.” — Austin Federa ([27:24])

7. Regulatory Breakthrough: SEC No Action Letter & DePIN ([27:41]–[32:08])

• No Action Letter: Double Zero received a no action letter from the SEC, strengthening its compliance stance (especially for institutional contributors).
  • Guarantees network rewards to fiber providers are not “securities transactions” under present regulatory interpretation.
  • Paves the way for more traditional and institutional players to participate without legal ambiguity.
• Physical vs. Software Work: Unlike most crypto networks, Double Zero’s contributors manage and repair real-world infrastructure (e.g., fixing undersea fiber cuts).

“All of the adoption hurdles that we’ve seen with traditional finance … this no action letter … gives an answer to a fiber contributor … The SEC has said, as this is structured, we do not view this as a securities transaction.”
— Austin Federa ([30:40])

“Being a contributor to 00 actually requires a ton of work. … Software is so comparatively easy.”
— Austin Federa ([31:36])

• Implications for DePIN: Hester Peirce (SEC Commissioner, “Crypto Mom”) acknowledged DePIN projects coordinate physical resources for real-world services—distinguishing them from speculative token models.

“These projects are allocating tokens as compensation for work performed or services rendered, not as investments with an expectation of profit.”
— Hester Peirce, cited by Laura Shin ([32:15])

8. Everyday User Impact: What Changes if Double Zero Succeeds? ([33:09]–[35:11])

• Short-term: Everything feels “snappier”—higher determinism, less congestion, faster transactions, more competitive markets reminiscent of traditional finance.
• Long-term: Enables new blockchain architectures (e.g., reliable multicast, much higher global connectivity), lowering technical debt for new protocols.
• Vision: Bring real market structure, high throughput, and trad-fi parity to blockchains (e.g., NASDAQ trading on-chain, tokenized equities trading efficiently).

“It’s kind of like the move from 3G connectivity… to 4G and LTE and 5G. All the things you can normally do are much faster. … This is actually what gets like NASDAQ trading on chain.”
— Austin Federa ([33:20], [34:47])

Notable Quotes & Memorable Moments

• Double Zero’s Mission:
  “We’re trying to rebuild the fundamental fabric of how distributed systems communicate using technologies that are faster than you can get on the public Internet.”
  — Austin Federa ([09:41])

• Economic Incentives:
  "We just get to drift off 30 years of high performance computing engineering that’s just never been applied in this way to blockchains and decentralized systems."
  — Austin Federa ([14:25])

• Regulatory Win:
  "It gives an answer to a fiber contributor … as this is structured, we do not view this as a securities transaction."
  — Austin Federa ([30:40])

• Physical World Challenges:
  “Fiber cables do get cut pretty regularly… the contributors have to respond. … The minute you touch the real world, software is so comparatively easy.”
  — Austin Federa ([31:35])

• Everyday Impact:
  “Over the long term … there’s people building new L1s and L2s today that are building assuming the whole thing will run on 00.”
  — Austin Federa ([34:07])

Timestamps for Important Segments

| Timestamp | Segment | |-----------|-------------------------------------------| | 01:00 | Double Zero’s origins & network challenge| | 05:29 | How Double Zero solves latency/bandwidth | | 10:08 | Use cases: trading, validators, etc. | | 13:10 | Developer/validator onboarding | | 14:33 | Ethereum’s approach vs. fast L1s/L2s | | 16:14 | 2Z token mechanics and rewards | | 25:35 | Network architecture & decentralization | | 27:41 | SEC no action letter and DePIN relevance | | 33:09 | Impact on everyday users and future vision|

Conclusion

This conversation paints Double Zero as not just another crypto network, but an ambitious reboot of the actual infrastructure behind blockchains—giving real-world performance that brings DePIN, high-frequency trading, and groundbreaking financial applications within reach. With regulatory buy-in and a hardware-first focus, Double Zero is poised to unlock new capabilities and accelerate the advance from “blockchain for crypto” to “blockchain for everything.”