Monad is considering a new account design that would let users replace the keys controlling their crypto wallets without having to change their existing addresses. The proposal could introduce native support for passkeys, social recovery and cryptographic systems designed to withstand future quantum attacks.
The Ethereum-compatible network wants to address a major weakness in conventional crypto wallets: losing a private key can mean permanently losing access to funds. Likewise, adopting a stronger authentication method often requires users to create a new address and transfer their assets.
Monad’s proposed architecture would separate an account’s address from the credentials used to authorize transactions. That would allow users to update or replace their authentication methods while keeping the same wallet address.
Monad attracted significant attention ahead of its 2025 launch. Its development team raised $19 million in 2023 and later secured $225 million in a Paradigm-led funding round in 2024.
The proposal, called “Flexible and Upgradeable Account Authentication,” is intended to support features such as post-quantum security, social recovery and passkeys that can be used across phones and computers.
A Different Approach to Quantum Security
Quantum computers are considered a potential future threat to cryptocurrencies because sufficiently advanced systems could undermine the digital signatures currently used to authenticate transactions and prove asset ownership.
Bitcoin developers have been researching quantum-resistant cryptography and ways to protect older coins with exposed public keys. Ethereum has also identified post-quantum protection as a long-term research priority covering areas such as wallets, staking and smart contracts.
Monad’s proposal would address the threat by allowing users to change the cryptographic credentials attached to an account. A wallet could therefore move from traditional keys to a quantum-resistant authentication system without requiring the user to change their address or transfer their assets.
Monad’s DeFi ecosystem has also expanded. According to DefiLlama, roughly $939 million is locked across decentralized-finance applications on the network. Stablecoin liquidity accounts for around $732 million, while decentralized exchanges recorded approximately $329 million in 24-hour volume. MON was trading about 2% higher on Tuesday.
How the Proposed Wallet System Could Work
Under Monad’s design, an account could add, replace or remove the credentials authorized to approve transactions while retaining its original address.
The authentication options could include standard private keys, passkeys stored on mobile devices or computers, multiple authorized signers and cryptographic schemes designed to withstand future quantum computing capabilities.
The system could also make wallet recovery easier. A user might configure their account so that their regular key handles normal transactions, while two trusted contacts could jointly approve a replacement key if the original credential is lost.
The same architecture could allow users to convert an existing account into a multisignature wallet or upgrade its security to a post-quantum scheme without moving funds to another address.
The proposal is not yet final. Authors Kushal Babel and Jan Camenisch said the current version establishes the core design, while a detailed specification covering implementation still needs to be developed.
If adopted, the changes would not disrupt existing accounts. Current wallets would continue functioning normally, while users could gain the option to upgrade authentication methods, improve recovery and prepare their accounts for future cryptographic threats.
