Monad proposes wallet upgrade for passkeys, recovery and quantum security

Monad has proposed a wallet security upgrade that would let users replace lost or outdated cryptographic keys while keeping the same blockchain address and assets.

According to CoinDesk, the proposal would separate a Monad account’s permanent address from the authentication credentials used to authorize transactions, opening a path for key rotation, social recovery, passkeys and post-quantum security without forcing users to create another wallet.

Under the current model used by most Ethereum-compatible wallets, an externally owned account is closely tied to its private key. Losing that key can permanently remove access to the assets held by the account, while adopting a different security method can require users to create another address and transfer their holdings.

Monad researchers Kushal Babel and Jan Camenisch have proposed changing that relationship so an address could continue to identify the same account even when its authentication credentials are replaced.

The authors described the design as a way to support “post-quantum accounts, social recovery” and user-friendly authentication methods such as passkeys at the protocol level.

Monad wallet upgrade separates addresses from keys

At the center of the proposal is a distinction between an account’s identity and the credentials permitted to control it. CoinDesk reported that users could add, replace or retire authorization credentials while leaving the underlying address unchanged.

A user who loses a private key could therefore recover control through another authorization method configured for the account. One example described in the proposal would allow two trusted parties acting together to install a replacement credential if the original key becomes unavailable.

The same structure could allow an existing account to move to multisignature authorization without transferring its tokens, NFTs or other assets to another wallet address. Passkeys stored on phones or computers could also become valid authentication methods if the required support is eventually implemented.

For users and applications that depend on a stable wallet address, keeping the identifier unchanged could also avoid the operational work involved in updating addresses across services after a security migration.

Existing Monad accounts would continue operating normally under the current proposal if the changes are eventually adopted, according to CoinDesk. The design remains at an early stage, with Babel and Camenisch outlining the architecture while a detailed implementation specification still needs to be developed.

Monad established its formal improvement proposal process earlier this year for technical changes that affect the network. Core proposals can require changes to the execution or consensus layers and must progress through draft, review and other stages before reaching final status.

Post-quantum security could be added without moving funds

One use case identified by the authors involves replacing conventional cryptographic credentials with schemes designed to withstand future quantum computers.

Powerful enough quantum machines could eventually threaten digital signature systems used by major blockchains. The risk involves algorithms capable of deriving private information from cryptographic public keys, potentially allowing an attacker to forge signatures for affected accounts.

Monad’s proposal approaches the problem at the account level. Instead of requiring a holder to send assets to a newly generated post-quantum wallet, the account could install a different authorization method while retaining its existing address.

A similar problem has already prompted work elsewhere in the industry. In July, crypto.news reported on a proposal from AmericanFortress called Zero-Knowledge Proof of Seed Provenance, or ZK-PoSP, which was designed to protect existing Bitcoin, Ethereum and Solana addresses without requiring holders to move their assets.

AmericanFortress said its design could replace conventional transaction authorization with zero-knowledge proofs while keeping existing wallet addresses intact. The paper also described its post-quantum protection as conjectural and said blockchain networks would require node-level upgrades before the system could be enforced.

Monad’s proposal uses a different account design, but both approaches address the problem of migrating security systems when users already have assets, contracts and identities attached to existing blockchain addresses.

The issue has received more attention across blockchain development as networks examine cryptographic standards that could eventually replace signatures vulnerable to quantum attacks. Any Monad implementation would still depend on the proposal passing the network’s technical review process and developers producing the detailed specification needed for client implementation.

Monad wallet proposal follows its 2025 mainnet launch

Monad launched its mainnet in November 2025 after raising $244 million from investors, including a $225 million Series A led by Paradigm with participation from Electric Capital, Coinbase Ventures, Castle Island Ventures, GSR Ventures and Greenoaks.

Ahead of the launch, Monad mainnet coverage detailed the network’s use of parallel transaction execution and superscalar pipelining, with the blockchain designed to process as many as 10,000 transactions per second while retaining compatibility with Ethereum smart contracts.

The network went live alongside its MON token on Nov. 24, 2025. Monad’s Ethereum Virtual Machine compatibility allows developers to deploy applications written for Ethereum while using Monad’s execution architecture and block production system.

Development around the network continued after launch. A Monad-focused accelerator called Nitro opened applications in February 2026 and offered as much as $7.5 million across up to 15 early-stage teams, with individual projects eligible for up to $500,000.

The Nitro accelerator program targeted infrastructure, developer tooling and user-facing applications. Investors including Paradigm, Electric Capital, Dragonfly and Castle Island Ventures were expected to participate in mentorship and its Demo Day.

Wallet infrastructure has also become part of Monad’s application layer. MetaMask launched Money Account on the network in June, combining a self-custodial stablecoin balance with payments, trading and variable yield.

Under the MetaMask Money Account product, supported stablecoins can be converted into mUSD at one-to-one parity, while users who opt in can earn up to 4% variable annual percentage yield without minimum balances or fixed lockup periods.

Monad proposal remains at an early design stage

CoinDesk reported that Monad’s proposed authentication model could support multiple credentials for one account, allowing users to configure combinations of traditional private keys, passkeys, multisignature controls or future post-quantum methods.

Account recovery could also be programmed around multiple participants. A user could retain a normal signing key for everyday transactions while assigning a separate recovery condition that allows trusted parties to install a replacement credential only when required.

Such a setup would change the role of the private key from a permanent component of the wallet address into one possible authorization method attached to the account.

The proposal has not yet reached a finalized implementation. Babel and Camenisch said the current draft establishes the general design, while the technical specification needed to define how the mechanism would operate at the protocol level remains to be written.

Monad’s improvement process requires proposals affecting core protocol behavior to move through formal stages that include Draft, Review, Last Call and Final. Core changes also require client implementations before reaching final status, and proposal authors are expected to work with Monad’s implementation teams and build technical consensus through the review process.