Bounty XXB-2025-002: Sleeve Wallet Single Seed Modification
Overview
This bounty rewards developers for modifying the Sleeve Wallet to support single seed phrase generation while maintaining quantum security through WOTS (Winternitz One-Time Signature) and classical ECDSA key binding.
The current generation is described here: wallet/docs/Sleeve Wallet generation.png · main · foundation / sleeve · GitLab - This produces a quantum secure secret and an output used to generate a BIP39 mnemonic used as a seed for other wallets. This construction necessitates 2 output mnemonics. One based on entropy to create a wallet secret to generate a WOTS keypair and one based on the SHA3_256 output which generates the ECDSA key. Sleeve derives it’s security by chaining the public key from WOTS to the secret that generates the ECDSA or other key type, allowing for support of any arbitrary network. We want to add an option to use a single seed phrase and generate such keys using the WOTS public key as part of the derivation path. The goal here is to modify the sleeve tool to produce both types, as BIP32 derivation and related do not typically expose the master key, only the secret keys attached to the public key. Thus, by using the same seed to produce a bound quantum and classical key, users can generate such keys with existing seeds instead of relying on 2 levels of BIP32. You can implement this via separate derivation path or by selecting an index value that corresponds to the WOTS public key.
I’d like to propose our involvement with the development of Bounty XXB-2025-002: Sleeve Wallet Single Seed Modification.
As some of you might have been following our progress on the extension milestone (which is now being audited), I’d love to continue our mutual efforts. As per previous conversations with @rick regarding the details, I’d also like to formally propose them for the council.
We would like to include a few changes and clarifications to the original grant:
Milestone 0 (20%)
technical design document (diagram/flow based) that confirms all the technical specifications before it’s implementation
Milestone 1(20%)
Modify current sleeve generation process to allow option for single seed phrase option.
Milestone 2 (20%)
Perform thorough tests on the modification to ensure security models maintained and is still fully quantum secure, check backwards compatibility for dual seed phrase generation and ensure both types of wallet generation (single and dual) work on any other arbitrary network. Tests should demonstrate all core functionality as specified in the bounty proposal.
Milestone 3 (30%)
Integrate modifications into the XX Network wallet generator UI and the sleeve generator tool. Writeup information for users to utilize new features and for developers to maintain in the future.
Milestone 4(10%)
Audit
General updates;
The core focus will be on the technical implementation, other points are secondary.
The specific wallet integrations will be confirmed with Rick ahead of commencement
Payout details
60% of the rewarded grant direct release, 40% over a 3 month vesting shedule
All payouts are calculated from USD (50 000USD)
USD to xx calculation: follows either a 2 week moving average or the current lowest price, where the grant receivers (us) receive the optimal rate.
Milestone submission post is seen as the payout calculation date
If there is a major vesting change in token price, this wil be pro-rated with the next milestone, or on a near future payout
Liquidity guarantee when exiting from xx to USD on the tokens
It would be great to have it pegged to EUR, and that consideration is appreciated.
We’ve begun our work in the meantime and will soon get back with the initial architecture.
I’d like to showcase our continuous work on this here:
Due to our communication during meetings and other calls, we have made direct progress on the initial three milestones (Milestone 0/1/2, equalling 60% of the bounty).
The technical implementation has been discussed with @rick, the implementations have been done by Evi throughout the past few months.
The Sleeve generation process has been updated to allow for the single seed phrase option.
Tests have been completed
I’d be keen to hear feedback, alongside also confirmation of completion as so why can finalise the final 2 Milestones (Milestone 3 & Audit)
Congratulations on the Single-Seed implementation!
I recently added Polkadot.js backup.json generation to my sleevage-based workflow, which has proven very useful for streamlining validator deployments (no more Node.js/Python dependencies just for backup file creation).
Now that I see your Single-Seed modification extending Sleeve’s capabilities, I think it would make sense to integrate this feature here as well. It would provide users with production-ready, encrypted backups directly from the tool.
I see this as a nice complementary extension to the core wallet generation functionality. It would enhance the convenience of automated wallet generation and increase the overall attractiveness of the wallet for production use.
How do you see this fitting into the project’s scope?
Unfortunately price has collapsed on xx and this drains the curator account. The foundation will be in touch but documenting here that we need to stop work until the situation can be resolved. We also will pay out curator and close this for time being.
