Morph Compensate

A privacy-preserving MCP (Model Context Protocol) payment system that enables anonymous credit transactions using zero-knowledge proofs and blockchain technology. Acts as a payment facilitator for MCP server developers to monetize their services.

Description

Morph Compensate is a decentralized MCP payment platform that allows users to deposit funds, receive private credits, and spend them anonymously without revealing their identity or transaction history. Built as an MCP server itself, it serves as a payment gateway for other MCP developers to monetize their tools and services. The system uses zero-knowledge cryptography to prove ownership of credits without exposing sensitive information, providing financial privacy while maintaining transaction integrity.

Core Innovation: Compensate operates as an MCP (Model Context Protocol) server that acts as a payment facilitator for developers who create MCP servers. Developers can monetize their MCP tools and services by integrating with Compensate, allowing users to pay for premium MCP functionality using private credits while maintaining anonymity.

Key features:

• Private Deposits: Users can deposit Morph ETH and receive private credit commitments
• Anonymous Spending: Credits can be spent without revealing the spender's identity
• Zero-Knowledge Proofs: Cryptographic proofs ensure transaction validity without exposing secrets
• MCP Integration: Seamless payment gateway for MCP server developers
• Developer Monetization: Enable developers to get paid for their MCP services
• Product Marketplace: Integration with e-commerce for private purchases
• Email Notifications: Automated order confirmations and updates

Architecture

Core Components

┌─────────────────┐    ┌──────────────────┐    ┌─────────────────┐
│     Client      │    │      Server      │    │   Blockchain    │
│   (Next.js)     │◄──►│   (Express.js)   │◄──►│   (Ethereum)    │
└─────────────────┘    └──────────────────┘    └─────────────────┘
         │                        │                       │
         │              ┌──────────────────┐             │
         └─────────────►│    Supabase      │◄────────────┘
                        │   (Database)     │
                        └──────────────────┘

Service Architecture

1. Client Application (client/)

   • Next.js frontend with React components
   • Web3 wallet integration (WalletConnect/MetaMask)
   • Zero-knowledge proof generation
   • User interface for deposits and spending

2. Smart Contracts (compensate-contracts/)

   • PrivateCreditSystem.sol: Core contract for deposits and spending
   • Groth16Verifier.sol: ZK proof verification
   • Deployed on Ethereum-compatible networks

3. Server Backend (compensate-server/)

   • Express.js API server
   • Blockchain interaction and transaction management
   • User balance and commitment tracking
   • ZK proof utilities

4. Circuit System (circom-circuit/)

   • Circom circuits for zero-knowledge proofs
   • Proof generation and verification utilities
   • Cryptographic commitment schemes

5. MCP Services

   • Buy Stuff Service (compensate-buy-stuff/): Product search and purchase with payment processing
   • Wallet Service (compensate-wallet-mcp/): Transaction management and credit spending
   • Payment Gateway: Enables other MCP developers to integrate paid services
   • Developer SDK: Tools for MCP creators to monetize their servers

6. Database (Supabase)

   • Deposit records and transaction history
   • Product orders and fulfillment data

Privacy Model

• Commitments: Users generate cryptographic commitments to their credits
• Nullifiers: Prevent double-spending while maintaining anonymity
• Zero-Knowledge Proofs: Prove credit ownership without revealing secrets