SKALE Labs today announced the launch of FAIR, the first Layer 1 blockchain purpose-built to eliminate miner extractable value (MEV) and serve the next generation of AI-driven financial protocols. The new chain debuts with Vodafone’s Pairpoint as a founding validator.
FAIR aims to eliminate MEV—a form of value extraction where validators and bots manipulate blockchain transactions for profit—by integrating encryption at the consensus level via its proprietary BITE Protocol. The project positions itself as a safeguard for the coming wave of agentic AI, autonomous software agents predicted to increasingly execute financial logic on-chain.
“MEV has an expiration date,” said Jack O’Holleran, CEO and Co-Founder of SKALE Labs. “Every user today pays a tax on trades due to MEV bots. With the rise of AI, this problem becomes exponential.”
“FAIR solves for MEV by embedding encryption directly into consensus and is the first truly MEV-resistant blockchain, solving a problem the industry has long accepted as inevitable,” Jack added.
A Blockchain for the AI Economy
The announcement comes as financial ecosystems brace for a radical shift driven by AI agents and DeFi convergence.
Bernstein has projected that total crypto revenue could grow to approximately $400 billion by 2033, with decentralized blockchain-driven revenue accounting for nearly half of this total. Moreover, the global AI agents market is projected to reach $50.31 billion by 2030. In the financial services sector specifically, the AI agents market was valued at $490.2 million in 2024 and is expected to grow to $4.49 billion by 2030.
These forecasts are achievable, provided there is infrastructure that guarantees transactional fairness and data security. FAIR’s pitch is to be that infrastructure.
FAIR’s integration of AI isn’t merely buzz. In the short term, it will use AI to detect and prevent smart contract exploits and anomalous transactions. Over time, it will support complex AI agents capable of accessing liquidity, executing investment logic, and interacting securely with other on-chain entities—all while immune to frontrunning or sandwich attacks.
FAIR will be powered by FAIR EVM, a custom-built C++ parallelized virtual machine that features asynchronous execution, instant finality, and database-level optimization. The result is a network capable of handling high-frequency agentic logic while preserving privacy.
Vodafone’s Role and Cross-Industry Collaboration
The launch of FAIR is further distinguished by its collaboration with Pairpoint by Vodafone. “The rapid evolution of AI and other automation technologies is forcing the evolution of a new digital infrastructure to serve the fast evolving digital world, and cellular, Web3, and AI will be a part of it,” stated David Palmer, Chief Product Officer at Pairpoint by Vodafone. “As part of the technological convergence this requires blockchain adoption is growing with the potential to form a trust and automation link between people, businesses, IoT devices and even AI Agents, which places significant emphasis on security both at the edge and on chain to prevent attacks like miner/maximal extractable value attacks (MEV).”
Vodafone’s involvement is part of a broader trend where telecom giants are exploring blockchain for trusted machine-to-machine (M2M) interactions. FAIR’s alignment with telecom infrastructure may help it gain early adoption in sectors where edge trust and transaction integrity are paramount, such as smart logistics, autonomous mobility, and decentralized commerce.
FAIR to introduce its own native token
While FAIR will introduce its own native token, the existing $SKL token from the SKALE ecosystem will retain significant utility through burn mechanics and cross-chain functions, effectively bridging both networks. A large portion of FAIR’s upcoming token supply will be allocated to SKL holders, incentivizing developers and users to participate in the new ecosystem.
Developers will also gain access to the FAIR SDK, which extends encryption, private execution, and AI interaction capabilities to existing SKALE Chains. Over 55 million wallets are already using SKALE-based applications, which have collectively saved over $12 billion in gas fees since launch. These apps stand to gain immediate MEV-resistance and encrypted AI compatibility.
Why does it matter?
MEV has long been viewed as a necessary evil in blockchain—inevitable due to the public nature of mempools and the profit motives of validators. Solutions have emerged at the application and middleware levels, such as Flashbots’ MEV relay and private orderflow mechanisms, but critics argue these create new centralization points.
FAIR takes a more foundational approach by modifying consensus itself.
FAIR’s launch also adds a new dimension to the ongoing competition between modular and monolithic blockchains. By keeping execution, consensus, and AI-integration tightly coupled, SKALE Labs is betting on performance and native features over composability with third-party middleware.
FAIR is currently in testnet with a mainnet launch expected later in 2025. If successful, it could shift how AI agents, DeFi protocols, and enterprises view blockchain as a transactional substrate—not just for humans, but for software negotiating value in real time.
With growing institutional interest, especially from telecommunications and enterprise sectors, FAIR may be the first of many AI-first blockchains that challenge longstanding assumptions in DeFi architecture.
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Image Credits: SKALE Labs, Canva