Research Report | In-Depth Overview of Mind Network & FHE Market Valuation

Mind Network is a modular privacy computing network built on Fully Homomorphic Encryption (FHE), aiming to provide foundational encrypted computing capabilities and security for emerging sectors such as AI, Web3, and restaking. Through its proprietary HTTPZ protocol, Mind enables data usability while encrypted, creating a "usable but invisible" zero-trust network. This infrastructure offers a comprehensive solution for the deployment, collaboration, communication, and verification of on-chain AI agents.

The project’s core innovation lies in the deep integration of FHE with AI agents, launching the world’s first FHE public blockchain—MindChain—and building an agent-based economic system called AgenticWorld on BNB Chain. This system supports the creation, training, task execution, and destruction of AI agents, forming a closed-loop ecosystem. Mind is also expanding into AI restaking, secure communication, and private data circulation, positioning itself as a competitively versatile FHE infrastructure.

The core team includes members from Cambridge University, Google, and Microsoft, with strong backgrounds in cryptography and AI research. Their work on FHE and stealth addresses has been supported by the Ethereum Foundation and has resolved a stealth address problem raised by Vitalik Buterin. The project has raised $12.5 million from top-tier investors such as Binance Labs, Chainlink, ZAMA, and Animoca, and is a signed Channel Partner of Chainlink and a key collaborator with ZAMA.

As narratives around AI, restaking, and zero trust continue to gain traction, Mind Network is positioning itself not just as an FHE network, but as the trust infrastructure for the AI ecosystem and the security layer for restaking—making it a strong contender for the next breakout project.

Project Highlights

High Technical Barrier, Leading Position in FHE
Mind Network builds its privacy computing infrastructure on FHE, enabling encrypted data usability. Known as the "holy grail of cryptography," FHE has been recognized by NIST as a post-quantum encryption standard. Mind is one of the few projects to implement this technology on-chain, offering strong technical scarcity.

AI Ecosystem Pioneer, Building an Agent Operating System
Rather than simply incorporating AI concepts, Mind has developed a full-fledged AgenticWorld operating system for AI agents, including mechanisms for creation, training, task execution, and destruction. It supports consensus, data, communication, and computation security, addressing trust issues in decentralized AI deployment.

Multi-Ecosystem Synergy, Serving Leading Projects and Protocols
Mind has established deep collaborations with io.net, Swarms, DeepSeek, ZAMA, Chainlink, and others, applying its technology in healthcare, communications, and inference scenarios. It currently supports over 3,000 AI agents, has deployed 20+ central nodes and 40+ SDKs, and has joined the Chainlink BUILD program as a Channel Partner.

Strong Funding and Backing from Top-Tier Investors
The project has raised $12.5 million from investors including Binance Labs, Animoca, HashKey, ZAMA, SevenX, Mr. Block, and Mike Silagadze. It has been selected for the Binance Incubator, Ethereum Foundation Fellowship, and Chainlink BUILD Program, ensuring long-term resource support.

New Restaking Paradigm Compatible with AI and PoS Narratives
Mind is the first infrastructure project in the AI sector to propose the concept of restaking. By combining FHE consensus mechanisms, it supports remote staking of LSTs/LRTs and dual/triple staking security models, offering shared security for on-chain AI and building the trust layer for next-generation decentralized computing.

Market Valuation Outlook

As a core infrastructure in decentralized privacy computing, Mind Network leverages FHE technology to provide privacy protection and a trusted execution environment for the AI agent ecosystem. It is comparable to projects like Nillion, Virtuals Protocol, and MyShell, offering both foundational capabilities and ecosystem entry points. Though currently in an early valuation stage, it possesses strong narrative uniqueness and product viability. Based on FDV models of similar projects, $FHE has significant revaluation potential and may emerge as a key asset powering the “AI Agent Security Engine.”

Tokenomics

Total Supply of $FHE: 1 billion tokens
Initial Circulating Supply: 24.9%

Token Allocation:

Community (30%): 300 million tokens, linearly vested over 5 years to support ecosystem growth, including $FHE staking rewards and user incentive programs.

Airdrop (11.7%): 117 million tokens; 7.5% unlocked at TGE, 1% allocated to Binance Wallet Campaign, remainder reserved for future airdrops.

Public Sale (5%): 50 million tokens, fully unlocked at TGE to support initial market participation.

Investors (20%): 200 million tokens, 4-year linear vesting with a 12-month cliff to ensure long-term alignment.

Team (17%): 170 million tokens, 4-year linear vesting with a 12-month cliff to incentivize long-term team commitment.

Advisors (1.3%): 13 million tokens, 4-year linear vesting with a 12-month cliff for strategic advisor incentives.

Liquidity Providers (5%): 50 million tokens, deployed at TGE for market stability and liquidity provisioning.

Treasury (10%): 100 million tokens; 1.5% unlocked at TGE, remainder vested linearly over 4 years after a 12-month cliff, supporting ecosystem subsidies and strategic initiatives.

Token Utility:
$FHE serves as the core asset powering the autonomous AI system within AgenticWorld, covering multiple critical scenarios:

Activating and running AI agents

Supporting task execution, training, and reward distribution

Paying for FHE privacy computation to ensure data confidentiality

Participating in ecosystem governance and Hub-level proposals via MindDAO

Enabling value transfer and interoperability between agents and multi-chain networks

Team & Fundraising

Team:

Mind Network was co-founded by Christian Pusateri, a cryptography PhD from the University of Cambridge, and George, a seasoned technical expert. The core team has expertise in AI, secure computing, cryptography, and crypto-economics, with members from Google, Microsoft, IBM, and the Ethereum Foundation. The team is committed to building a secure computing network and agent operating system for AI using FHE.

Mind Network is the world’s first modular privacy computing network built on FHE. It introduced and implemented the HTTPZ standard, launched the agent-specific chain MindChain and the economic system AgenticWorld, and is a pioneer in the AI + FHE + Restaking narrative. Its core research has solved the stealth address cryptographic challenge proposed by Vitalik Buterin, was selected for the Ethereum Foundation Fellowship, and continues to expand its ecosystem through key partnerships with ZAMA, Chainlink, and others.

Fundraising:

Mind Network has completed two major funding rounds totaling $12.5 million:

On September 27, 2024, it raised $10 million in a Pre-A round led by Animoca Brands, MH Ventures, ArkStream Capital, Cogitent Ventures, Master Ventures, Moonhill Capital, SwissBorg Ventures, IBC Group, Mr. Block, Mike Silagadze, Mario Nawfal, Kyle Chasse, and G Ventures.

On June 29, 2023, it raised $2.5 million in a seed round from YZi Labs, SevenX Ventures, HashKey Capital, Comma3 Ventures, Big Brain Holdings, Mandala Capital, and Arweave SCP Ventures.

Potential Risks

Fully Homomorphic Encryption (FHE) is a cutting-edge technology with high security but also high development complexity and computational cost, which may hinder short-term adoption and integration by partners.

Despite its advanced FHE privacy computing architecture, Mind Network’s large-scale application and AI agent ecosystem still require time to mature, and ecosystem development may progress slowly.

Official Links

Website: https://www.mindnetwork.xyz/
Twitter: https://x.com/mindnetwork_xyz
Discord: https://discord.com/invite/UYj94MJdGJ