diff --git a/crates/synor-dag/src/dagknight.rs b/crates/synor-dag/src/dagknight.rs
new file mode 100644
index 0000000..37ce2ea
--- /dev/null
+++ b/crates/synor-dag/src/dagknight.rs
@@ -0,0 +1,483 @@
+//! DAGKnight adaptive consensus protocol.
+//!
+//! DAGKnight is an evolution of GHOSTDAG that eliminates fixed network delay
+//! assumptions. Instead of using a static k parameter, DAGKnight adapts based
+//! on observed network conditions.
+//!
+//! # Key Improvements Over GHOSTDAG
+//!
+//! 1. **Adaptive K Parameter**: Adjusts based on measured network latency
+//! 2. **Probabilistic Confirmation**: Provides confidence-based finality estimates
+//! 3. **No Fixed Delay Assumption**: Learns actual network behavior
+//! 4. **Faster Confirmation**: Converges faster under good network conditions
+//!
+//! # Algorithm Overview
+//!
+//! DAGKnight maintains the core GHOSTDAG blue set selection but adds:
+//! - Network latency tracking via `LatencyTracker`
+//! - Dynamic k calculation based on observed anticone growth
+//! - Probabilistic confirmation time estimation
+//!
+//! # References
+//!
+//! - DAGKnight Paper (2022): "DAGKnight: A Parameterless GHOSTDAG"
+//! - Kaspa 2025 Roadmap: Implementation plans for production use
+
+use std::sync::Arc;
+use std::time::Duration;
+
+use parking_lot::RwLock;
+
+use crate::{
+    dag::BlockDag,
+    ghostdag::{GhostdagData, GhostdagError, GhostdagManager},
+    latency::{LatencyStats, LatencyTracker},
+    reachability::ReachabilityStore,
+    BlockId, BlueScore, GHOSTDAG_K,
+};
+
+/// Minimum adaptive k value (security lower bound).
+const MIN_ADAPTIVE_K: u8 = 8;
+
+/// Maximum adaptive k value (performance upper bound).
+const MAX_ADAPTIVE_K: u8 = 64;
+
+/// Default k when insufficient latency data is available.
+const DEFAULT_K: u8 = GHOSTDAG_K;
+
+/// Number of samples required before adapting k.
+const MIN_SAMPLES_FOR_ADAPTATION: usize = 100;
+
+/// Block rate (blocks per second) - used for k calculation.
+/// At 10 BPS with 100ms block time, this is the baseline.
+const BLOCK_RATE_BPS: f64 = 10.0;
+
+/// Safety margin multiplier for k calculation.
+/// Higher values = more conservative (safer but lower throughput).
+const SAFETY_MARGIN: f64 = 1.5;
+
+/// Confirmation confidence levels.
+#[derive(Clone, Copy, Debug, PartialEq)]
+pub enum ConfirmationConfidence {
+    /// ~68% confidence (1 sigma).
+    Low,
+    /// ~95% confidence (2 sigma).
+    Medium,
+    /// ~99.7% confidence (3 sigma).
+    High,
+    /// ~99.99% confidence (4 sigma).
+    VeryHigh,
+}
+
+impl ConfirmationConfidence {
+    /// Returns the sigma multiplier for this confidence level.
+    fn sigma_multiplier(&self) -> f64 {
+        match self {
+            ConfirmationConfidence::Low => 1.0,
+            ConfirmationConfidence::Medium => 2.0,
+            ConfirmationConfidence::High => 3.0,
+            ConfirmationConfidence::VeryHigh => 4.0,
+        }
+    }
+}
+
+/// Confirmation status for a block.
+#[derive(Clone, Debug)]
+pub struct ConfirmationStatus {
+    /// Block being queried.
+    pub block_id: BlockId,
+    /// Current blue score depth from virtual tip.
+    pub depth: u64,
+    /// Estimated time to reach requested confidence.
+    pub estimated_time: Duration,
+    /// Current confidence level achieved.
+    pub current_confidence: f64,
+    /// Whether the block is considered final.
+    pub is_final: bool,
+}
+
+/// DAGKnight manager extending GHOSTDAG with adaptive consensus.
+pub struct DagKnightManager {
+    /// Underlying GHOSTDAG manager.
+    ghostdag: Arc<GhostdagManager>,
+    /// The DAG structure.
+    dag: Arc<BlockDag>,
+    /// Reachability queries.
+    reachability: Arc<ReachabilityStore>,
+    /// Network latency tracker.
+    latency_tracker: Arc<LatencyTracker>,
+    /// Current adaptive k value.
+    adaptive_k: RwLock<u8>,
+    /// Block rate setting.
+    block_rate_bps: f64,
+}
+
+impl DagKnightManager {
+    /// Creates a new DAGKnight manager.
+    pub fn new(
+        dag: Arc<BlockDag>,
+        reachability: Arc<ReachabilityStore>,
+    ) -> Self {
+        let ghostdag = Arc::new(GhostdagManager::new(dag.clone(), reachability.clone()));
+        let latency_tracker = Arc::new(LatencyTracker::new());
+
+        Self {
+            ghostdag,
+            dag,
+            reachability,
+            latency_tracker,
+            adaptive_k: RwLock::new(DEFAULT_K),
+            block_rate_bps: BLOCK_RATE_BPS,
+        }
+    }
+
+    /// Creates a DAGKnight manager with custom block rate.
+    pub fn with_block_rate(
+        dag: Arc<BlockDag>,
+        reachability: Arc<ReachabilityStore>,
+        block_rate_bps: f64,
+    ) -> Self {
+        let ghostdag = Arc::new(GhostdagManager::new(dag.clone(), reachability.clone()));
+        let latency_tracker = Arc::new(LatencyTracker::new());
+
+        Self {
+            ghostdag,
+            dag,
+            reachability,
+            latency_tracker,
+            adaptive_k: RwLock::new(DEFAULT_K),
+            block_rate_bps,
+        }
+    }
+
+    /// Creates a DAGKnight manager wrapping an existing GHOSTDAG manager.
+    pub fn from_ghostdag(
+        ghostdag: Arc<GhostdagManager>,
+        dag: Arc<BlockDag>,
+        reachability: Arc<ReachabilityStore>,
+    ) -> Self {
+        Self {
+            ghostdag,
+            dag,
+            reachability,
+            latency_tracker: Arc::new(LatencyTracker::new()),
+            adaptive_k: RwLock::new(DEFAULT_K),
+            block_rate_bps: BLOCK_RATE_BPS,
+        }
+    }
+
+    /// Processes a new block with latency tracking.
+    ///
+    /// This method:
+    /// 1. Records the block observation in the latency tracker
+    /// 2. Delegates to GHOSTDAG for blue set calculation
+    /// 3. Updates the adaptive k parameter if needed
+    pub fn add_block(
+        &self,
+        block_id: BlockId,
+        parents: &[BlockId],
+        block_time_ms: u64,
+    ) -> Result<GhostdagData, GhostdagError> {
+        // Calculate anticone size for this block
+        let anticone_size = self.calculate_anticone_size(&block_id, parents);
+
+        // Record observation in latency tracker
+        self.latency_tracker.record_block(block_id, block_time_ms, anticone_size);
+
+        // Process with underlying GHOSTDAG
+        let data = self.ghostdag.add_block(block_id, parents)?;
+
+        // Periodically update adaptive k
+        if self.latency_tracker.sample_count() % 50 == 0 {
+            self.update_adaptive_k();
+        }
+
+        Ok(data)
+    }
+
+    /// Calculates the anticone size for a new block.
+    fn calculate_anticone_size(&self, block_id: &BlockId, parents: &[BlockId]) -> usize {
+        // Anticone is the set of blocks that are neither ancestors nor descendants
+        // For a new block, we estimate based on tips that aren't in parent set
+        let tips = self.dag.tips();
+        let mut anticone_count = 0;
+
+        for tip in tips {
+            if tip != *block_id && !parents.contains(&tip) {
+                // Check if tip is in the past of any parent
+                let in_past = parents.iter().any(|p| {
+                    self.reachability
+                        .is_ancestor(p, &tip)
+                        .unwrap_or(false)
+                });
+
+                if !in_past {
+                    anticone_count += 1;
+                }
+            }
+        }
+
+        anticone_count
+    }
+
+    /// Updates the adaptive k parameter based on observed latency.
+    ///
+    /// The adaptive k formula is:
+    /// k = ceil(block_rate * network_delay * safety_margin)
+    ///
+    /// This ensures that even with network delays, honest miners
+    /// can create blocks that fit within the k-cluster.
+    fn update_adaptive_k(&self) {
+        let stats = self.latency_tracker.get_stats();
+
+        // Don't adapt until we have enough samples
+        if stats.sample_count < MIN_SAMPLES_FOR_ADAPTATION {
+            return;
+        }
+
+        // Calculate k based on P95 delay (conservative)
+        let delay_secs = stats.p95_delay_ms / 1000.0;
+        let calculated_k = (self.block_rate_bps * delay_secs * SAFETY_MARGIN).ceil() as u8;
+
+        // Clamp to valid range
+        let new_k = calculated_k.clamp(MIN_ADAPTIVE_K, MAX_ADAPTIVE_K);
+
+        // Update if significantly different (avoid jitter)
+        let current_k = *self.adaptive_k.read();
+        if (new_k as i16 - current_k as i16).abs() >= 2 {
+            *self.adaptive_k.write() = new_k;
+        }
+    }
+
+    /// Gets the current adaptive k parameter.
+    pub fn adaptive_k(&self) -> u8 {
+        *self.adaptive_k.read()
+    }
+
+    /// Gets the current latency statistics.
+    pub fn latency_stats(&self) -> LatencyStats {
+        self.latency_tracker.get_stats()
+    }
+
+    /// Estimates confirmation time for a block at a given confidence level.
+    ///
+    /// DAGKnight provides probabilistic confirmation based on:
+    /// 1. Current depth (blue score difference from tip)
+    /// 2. Observed network latency
+    /// 3. Requested confidence level
+    pub fn estimate_confirmation_time(
+        &self,
+        block_id: &BlockId,
+        confidence: ConfirmationConfidence,
+    ) -> Result<ConfirmationStatus, GhostdagError> {
+        let block_data = self.ghostdag.get_data(block_id)?;
+        let tip_data = self.get_virtual_tip_data()?;
+
+        // Depth is the blue score difference
+        let depth = tip_data.blue_score.saturating_sub(block_data.blue_score);
+
+        // Get latency stats
+        let stats = self.latency_tracker.get_stats();
+
+        // Calculate required depth for requested confidence
+        // Based on the paper, confirmation requires depth proportional to
+        // network delay variance
+        let sigma = stats.std_dev_ms / 1000.0; // Convert to seconds
+        let mean_delay = stats.mean_delay_ms / 1000.0;
+        let sigma_multiplier = confidence.sigma_multiplier();
+
+        // Required depth scales with variance and confidence level
+        let required_depth = (self.block_rate_bps * (mean_delay + sigma * sigma_multiplier)).ceil() as u64;
+
+        // Current confidence based on actual depth
+        let current_confidence = if depth >= required_depth {
+            self.calculate_confidence(depth, mean_delay, sigma)
+        } else {
+            // Interpolate confidence based on depth progress
+            (depth as f64 / required_depth as f64) * 0.95
+        };
+
+        // Time to reach required depth
+        let blocks_needed = required_depth.saturating_sub(depth);
+        let time_per_block_ms = 1000.0 / self.block_rate_bps;
+        let estimated_time = Duration::from_millis((blocks_needed as f64 * time_per_block_ms) as u64);
+
+        // Block is final if depth exceeds finality threshold
+        let is_final = depth >= crate::FINALITY_DEPTH;
+
+        Ok(ConfirmationStatus {
+            block_id: *block_id,
+            depth,
+            estimated_time,
+            current_confidence,
+            is_final,
+        })
+    }
+
+    /// Calculates confidence level based on depth and network conditions.
+    fn calculate_confidence(&self, depth: u64, mean_delay: f64, sigma: f64) -> f64 {
+        // Using simplified normal CDF approximation
+        // Confidence increases with depth relative to expected delay variance
+        let depth_secs = depth as f64 / self.block_rate_bps;
+        let z_score = (depth_secs - mean_delay) / sigma.max(0.001);
+
+        // Approximate CDF using logistic function
+        1.0 / (1.0 + (-1.7 * z_score).exp())
+    }
+
+    /// Gets the GHOSTDAG data for the virtual tip (highest blue score block).
+    fn get_virtual_tip_data(&self) -> Result<GhostdagData, GhostdagError> {
+        let tips = self.dag.tips();
+
+        // Find tip with highest blue score
+        let mut best_tip = tips[0];
+        let mut best_score = self.ghostdag.get_blue_score(&tips[0]).unwrap_or(0);
+
+        for tip in tips.iter().skip(1) {
+            let score = self.ghostdag.get_blue_score(tip).unwrap_or(0);
+            if score > best_score {
+                best_score = score;
+                best_tip = *tip;
+            }
+        }
+
+        self.ghostdag.get_data(&best_tip)
+    }
+
+    /// Gets the underlying GHOSTDAG manager.
+    pub fn ghostdag(&self) -> &Arc<GhostdagManager> {
+        &self.ghostdag
+    }
+
+    /// Gets the latency tracker.
+    pub fn latency_tracker(&self) -> &Arc<LatencyTracker> {
+        &self.latency_tracker
+    }
+
+    /// Gets the blue score for a block (delegates to GHOSTDAG).
+    pub fn get_blue_score(&self, block_id: &BlockId) -> Result<BlueScore, GhostdagError> {
+        self.ghostdag.get_blue_score(block_id)
+    }
+
+    /// Gets the GHOSTDAG data for a block.
+    pub fn get_data(&self, block_id: &BlockId) -> Result<GhostdagData, GhostdagError> {
+        self.ghostdag.get_data(block_id)
+    }
+
+    /// Checks if a block is in the blue set.
+    pub fn is_blue(&self, block_id: &BlockId) -> bool {
+        self.ghostdag.is_blue(block_id)
+    }
+
+    /// Returns the selected chain from a block to genesis.
+    pub fn get_selected_chain(&self, from: &BlockId) -> Result<Vec<BlockId>, GhostdagError> {
+        self.ghostdag.get_selected_chain(from)
+    }
+
+    /// Resets the latency tracker (e.g., after network reconfiguration).
+    pub fn reset_latency_tracking(&self) {
+        self.latency_tracker.reset();
+        *self.adaptive_k.write() = DEFAULT_K;
+    }
+}
+
+impl std::fmt::Debug for DagKnightManager {
+    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
+        let stats = self.latency_tracker.get_stats();
+        f.debug_struct("DagKnightManager")
+            .field("adaptive_k", &*self.adaptive_k.read())
+            .field("block_rate_bps", &self.block_rate_bps)
+            .field("mean_delay_ms", &stats.mean_delay_ms)
+            .field("sample_count", &stats.sample_count)
+            .finish()
+    }
+}
+
+/// Calculates the optimal k for a given network delay and block rate.
+///
+/// This is a utility function for network analysis.
+pub fn calculate_optimal_k(network_delay_ms: f64, block_rate_bps: f64) -> u8 {
+    let delay_secs = network_delay_ms / 1000.0;
+    let k = (block_rate_bps * delay_secs * SAFETY_MARGIN).ceil() as u8;
+    k.clamp(MIN_ADAPTIVE_K, MAX_ADAPTIVE_K)
+}
+
+/// Estimates throughput (TPS) for given network conditions.
+///
+/// Throughput depends on block rate and transaction capacity per block.
+pub fn estimate_throughput(
+    block_rate_bps: f64,
+    avg_tx_per_block: u64,
+    network_delay_ms: f64,
+) -> f64 {
+    // Effective block rate accounting for orphan rate
+    let orphan_rate = (network_delay_ms / 1000.0 * block_rate_bps).min(0.5);
+    let effective_bps = block_rate_bps * (1.0 - orphan_rate);
+
+    effective_bps * avg_tx_per_block as f64
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use synor_types::Hash256;
+
+    fn make_block_id(n: u8) -> BlockId {
+        let mut bytes = [0u8; 32];
+        bytes[0] = n;
+        Hash256::from_bytes(bytes)
+    }
+
+    fn setup_test_dag() -> (Arc<BlockDag>, Arc<ReachabilityStore>, DagKnightManager) {
+        let genesis = make_block_id(0);
+        let dag = Arc::new(BlockDag::new(genesis, 0));
+        let reachability = Arc::new(ReachabilityStore::new(genesis));
+        let dagknight = DagKnightManager::new(dag.clone(), reachability.clone());
+        (dag, reachability, dagknight)
+    }
+
+    #[test]
+    fn test_initial_k() {
+        let (_, _, dagknight) = setup_test_dag();
+        assert_eq!(dagknight.adaptive_k(), DEFAULT_K);
+    }
+
+    #[test]
+    fn test_calculate_optimal_k() {
+        // 100ms delay at 10 BPS: k = ceil(10 * 0.1 * 1.5) = 2, clamped to MIN_ADAPTIVE_K (8)
+        let k_low = calculate_optimal_k(100.0, 10.0);
+        assert!(k_low >= MIN_ADAPTIVE_K);
+        assert!(k_low <= MAX_ADAPTIVE_K);
+
+        // 1000ms delay at 10 BPS: k = ceil(10 * 1.0 * 1.5) = 15, above MIN
+        let k_medium = calculate_optimal_k(1000.0, 10.0);
+        assert!(k_medium >= MIN_ADAPTIVE_K);
+
+        // 3000ms delay at 10 BPS: k = ceil(10 * 3.0 * 1.5) = 45
+        let k_high = calculate_optimal_k(3000.0, 10.0);
+        assert!(k_high > k_medium);
+        assert!(k_high > k_low);
+    }
+
+    #[test]
+    fn test_estimate_throughput() {
+        // Good network: 10ms delay - orphan_rate = 0.01 * 10 = 0.1
+        let tps_good = estimate_throughput(10.0, 100, 10.0);
+
+        // Poor network: 40ms delay - orphan_rate = 0.04 * 10 = 0.4
+        let tps_poor = estimate_throughput(10.0, 100, 40.0);
+
+        // Good network should have higher throughput
+        assert!(tps_good > tps_poor, "tps_good={} should be > tps_poor={}", tps_good, tps_poor);
+    }
+
+    #[test]
+    fn test_confidence_levels() {
+        assert!(ConfirmationConfidence::VeryHigh.sigma_multiplier()
+            > ConfirmationConfidence::High.sigma_multiplier());
+        assert!(ConfirmationConfidence::High.sigma_multiplier()
+            > ConfirmationConfidence::Medium.sigma_multiplier());
+        assert!(ConfirmationConfidence::Medium.sigma_multiplier()
+            > ConfirmationConfidence::Low.sigma_multiplier());
+    }
+}
diff --git a/crates/synor-dag/src/latency.rs b/crates/synor-dag/src/latency.rs
new file mode 100644
index 0000000..87b3486
--- /dev/null
+++ b/crates/synor-dag/src/latency.rs
@@ -0,0 +1,372 @@
+//! Network latency tracking for DAGKnight adaptive consensus.
+//!
+//! This module tracks observed network propagation delays to enable
+//! DAGKnight's adaptive k parameter calculation. Unlike GHOSTDAG's
+//! fixed k assumption, DAGKnight adjusts based on real-world conditions.
+//!
+//! # Key Metrics
+//!
+//! - **Block propagation delay**: Time from block creation to network-wide visibility
+//! - **Anticone growth rate**: How quickly anticones grow (indicates network latency)
+//! - **Confirmation velocity**: Rate at which blocks achieve probabilistic finality
+
+use parking_lot::RwLock;
+use std::collections::VecDeque;
+use std::time::{Duration, Instant};
+
+use crate::BlockId;
+
+/// Maximum number of latency samples to keep for moving average.
+const MAX_LATENCY_SAMPLES: usize = 1000;
+
+/// Default network delay assumption in milliseconds.
+const DEFAULT_DELAY_MS: u64 = 100;
+
+/// Minimum delay to prevent unrealistic values.
+const MIN_DELAY_MS: u64 = 10;
+
+/// Maximum delay to cap at reasonable network conditions.
+const MAX_DELAY_MS: u64 = 5000;
+
+/// Latency sample from observed block propagation.
+#[derive(Clone, Debug)]
+pub struct LatencySample {
+    /// Block that was observed.
+    pub block_id: BlockId,
+    /// Timestamp when block was first seen locally.
+    pub local_time: Instant,
+    /// Timestamp from block header (creation time).
+    pub block_time_ms: u64,
+    /// Observed propagation delay in milliseconds.
+    pub delay_ms: u64,
+    /// Anticone size at time of observation.
+    pub anticone_size: usize,
+}
+
+/// Rolling statistics for latency measurements.
+#[derive(Clone, Debug, Default)]
+pub struct LatencyStats {
+    /// Mean propagation delay (ms).
+    pub mean_delay_ms: f64,
+    /// Standard deviation of delay (ms).
+    pub std_dev_ms: f64,
+    /// 95th percentile delay (ms).
+    pub p95_delay_ms: f64,
+    /// 99th percentile delay (ms).
+    pub p99_delay_ms: f64,
+    /// Average anticone growth rate (blocks per second).
+    pub anticone_growth_rate: f64,
+    /// Number of samples in current window.
+    pub sample_count: usize,
+}
+
+/// Network latency tracker for DAGKnight.
+///
+/// Collects block propagation samples and computes statistics
+/// used for adaptive k calculation and confirmation time estimation.
+pub struct LatencyTracker {
+    /// Recent latency samples.
+    samples: RwLock<VecDeque<LatencySample>>,
+    /// Cached statistics (recomputed on demand).
+    stats_cache: RwLock<Option<(Instant, LatencyStats)>>,
+    /// Cache validity duration.
+    cache_ttl: Duration,
+}
+
+impl LatencyTracker {
+    /// Creates a new latency tracker.
+    pub fn new() -> Self {
+        Self {
+            samples: RwLock::new(VecDeque::with_capacity(MAX_LATENCY_SAMPLES)),
+            stats_cache: RwLock::new(None),
+            cache_ttl: Duration::from_secs(5),
+        }
+    }
+
+    /// Creates a latency tracker with custom cache TTL.
+    pub fn with_cache_ttl(cache_ttl: Duration) -> Self {
+        Self {
+            samples: RwLock::new(VecDeque::with_capacity(MAX_LATENCY_SAMPLES)),
+            stats_cache: RwLock::new(None),
+            cache_ttl,
+        }
+    }
+
+    /// Records a new block observation.
+    ///
+    /// # Arguments
+    /// * `block_id` - Hash of the observed block
+    /// * `block_time_ms` - Timestamp from block header (Unix ms)
+    /// * `anticone_size` - Number of blocks in the anticone at observation time
+    pub fn record_block(
+        &self,
+        block_id: BlockId,
+        block_time_ms: u64,
+        anticone_size: usize,
+    ) {
+        let local_time = Instant::now();
+        let now_ms = std::time::SystemTime::now()
+            .duration_since(std::time::UNIX_EPOCH)
+            .map(|d| d.as_millis() as u64)
+            .unwrap_or(0);
+
+        // Calculate observed delay (clamp to valid range)
+        let delay_ms = if now_ms > block_time_ms {
+            (now_ms - block_time_ms).clamp(MIN_DELAY_MS, MAX_DELAY_MS)
+        } else {
+            // Clock skew - use default
+            DEFAULT_DELAY_MS
+        };
+
+        let sample = LatencySample {
+            block_id,
+            local_time,
+            block_time_ms,
+            delay_ms,
+            anticone_size,
+        };
+
+        let mut samples = self.samples.write();
+        if samples.len() >= MAX_LATENCY_SAMPLES {
+            samples.pop_front();
+        }
+        samples.push_back(sample);
+
+        // Invalidate stats cache
+        *self.stats_cache.write() = None;
+    }
+
+    /// Records a latency sample directly (for testing or external measurements).
+    pub fn record_sample(&self, sample: LatencySample) {
+        let mut samples = self.samples.write();
+        if samples.len() >= MAX_LATENCY_SAMPLES {
+            samples.pop_front();
+        }
+        samples.push_back(sample);
+
+        // Invalidate stats cache
+        *self.stats_cache.write() = None;
+    }
+
+    /// Gets current latency statistics.
+    ///
+    /// Uses cached value if available and fresh, otherwise recomputes.
+    pub fn get_stats(&self) -> LatencyStats {
+        // Check cache
+        {
+            let cache = self.stats_cache.read();
+            if let Some((cached_at, stats)) = cache.as_ref() {
+                if cached_at.elapsed() < self.cache_ttl {
+                    return stats.clone();
+                }
+            }
+        }
+
+        // Recompute statistics
+        let stats = self.compute_stats();
+
+        // Update cache
+        *self.stats_cache.write() = Some((Instant::now(), stats.clone()));
+
+        stats
+    }
+
+    /// Computes latency statistics from current samples.
+    fn compute_stats(&self) -> LatencyStats {
+        let samples = self.samples.read();
+
+        if samples.is_empty() {
+            return LatencyStats {
+                mean_delay_ms: DEFAULT_DELAY_MS as f64,
+                std_dev_ms: 0.0,
+                p95_delay_ms: DEFAULT_DELAY_MS as f64,
+                p99_delay_ms: DEFAULT_DELAY_MS as f64,
+                anticone_growth_rate: 0.0,
+                sample_count: 0,
+            };
+        }
+
+        let n = samples.len();
+
+        // Collect delay values
+        let mut delays: Vec<f64> = samples.iter().map(|s| s.delay_ms as f64).collect();
+        delays.sort_by(|a, b| a.partial_cmp(b).unwrap_or(std::cmp::Ordering::Equal));
+
+        // Mean
+        let sum: f64 = delays.iter().sum();
+        let mean = sum / n as f64;
+
+        // Standard deviation
+        let variance: f64 = delays.iter().map(|d| (d - mean).powi(2)).sum::<f64>() / n as f64;
+        let std_dev = variance.sqrt();
+
+        // Percentiles
+        let p95_idx = ((n as f64 * 0.95) as usize).min(n - 1);
+        let p99_idx = ((n as f64 * 0.99) as usize).min(n - 1);
+
+        // Anticone growth rate (blocks per second)
+        let anticone_growth_rate = if n > 1 {
+            let first = samples.front().unwrap();
+            let last = samples.back().unwrap();
+            let time_span_secs = last.local_time.duration_since(first.local_time).as_secs_f64();
+
+            if time_span_secs > 0.0 {
+                let total_anticone_growth: usize = samples.iter().map(|s| s.anticone_size).sum();
+                total_anticone_growth as f64 / time_span_secs / n as f64
+            } else {
+                0.0
+            }
+        } else {
+            0.0
+        };
+
+        LatencyStats {
+            mean_delay_ms: mean,
+            std_dev_ms: std_dev,
+            p95_delay_ms: delays[p95_idx],
+            p99_delay_ms: delays[p99_idx],
+            anticone_growth_rate,
+            sample_count: n,
+        }
+    }
+
+    /// Estimates the network delay for adaptive k calculation.
+    ///
+    /// Uses P95 delay as a conservative estimate to ensure security.
+    pub fn estimated_network_delay(&self) -> Duration {
+        let stats = self.get_stats();
+        Duration::from_millis(stats.p95_delay_ms as u64)
+    }
+
+    /// Estimates the expected anticone size for a given delay.
+    ///
+    /// Used by DAGKnight to predict confirmation times.
+    pub fn expected_anticone_size(&self, delay: Duration) -> usize {
+        let stats = self.get_stats();
+        let delay_secs = delay.as_secs_f64();
+
+        // Anticone grows at approximately anticone_growth_rate blocks/second
+        (stats.anticone_growth_rate * delay_secs).ceil() as usize
+    }
+
+    /// Gets the number of samples currently tracked.
+    pub fn sample_count(&self) -> usize {
+        self.samples.read().len()
+    }
+
+    /// Clears all samples and resets the tracker.
+    pub fn reset(&self) {
+        self.samples.write().clear();
+        *self.stats_cache.write() = None;
+    }
+}
+
+impl Default for LatencyTracker {
+    fn default() -> Self {
+        Self::new()
+    }
+}
+
+impl std::fmt::Debug for LatencyTracker {
+    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
+        let stats = self.get_stats();
+        f.debug_struct("LatencyTracker")
+            .field("sample_count", &stats.sample_count)
+            .field("mean_delay_ms", &stats.mean_delay_ms)
+            .field("p95_delay_ms", &stats.p95_delay_ms)
+            .finish()
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use synor_types::Hash256;
+
+    fn make_block_id(n: u8) -> BlockId {
+        let mut bytes = [0u8; 32];
+        bytes[0] = n;
+        Hash256::from_bytes(bytes)
+    }
+
+    #[test]
+    fn test_empty_tracker() {
+        let tracker = LatencyTracker::new();
+        let stats = tracker.get_stats();
+
+        assert_eq!(stats.sample_count, 0);
+        assert_eq!(stats.mean_delay_ms, DEFAULT_DELAY_MS as f64);
+    }
+
+    #[test]
+    fn test_record_samples() {
+        let tracker = LatencyTracker::new();
+        let now_ms = std::time::SystemTime::now()
+            .duration_since(std::time::UNIX_EPOCH)
+            .unwrap()
+            .as_millis() as u64;
+
+        // Record some samples with varying delays
+        for i in 0..10 {
+            tracker.record_block(
+                make_block_id(i),
+                now_ms - (50 + i as u64 * 10), // 50-140ms delays
+                i as usize,
+            );
+        }
+
+        let stats = tracker.get_stats();
+        assert_eq!(stats.sample_count, 10);
+        assert!(stats.mean_delay_ms >= 50.0);
+        assert!(stats.mean_delay_ms <= 150.0);
+    }
+
+    #[test]
+    fn test_sample_limit() {
+        let tracker = LatencyTracker::new();
+        let now_ms = std::time::SystemTime::now()
+            .duration_since(std::time::UNIX_EPOCH)
+            .unwrap()
+            .as_millis() as u64;
+
+        // Record more than MAX_LATENCY_SAMPLES
+        for i in 0..MAX_LATENCY_SAMPLES + 100 {
+            tracker.record_block(make_block_id(i as u8), now_ms - 100, 0);
+        }
+
+        assert_eq!(tracker.sample_count(), MAX_LATENCY_SAMPLES);
+    }
+
+    #[test]
+    fn test_estimated_delay() {
+        let tracker = LatencyTracker::new();
+        let now_ms = std::time::SystemTime::now()
+            .duration_since(std::time::UNIX_EPOCH)
+            .unwrap()
+            .as_millis() as u64;
+
+        // Record samples with ~100ms delay
+        for i in 0..50 {
+            tracker.record_block(make_block_id(i), now_ms - 100, 0);
+        }
+
+        let delay = tracker.estimated_network_delay();
+        assert!(delay.as_millis() >= 90);
+        assert!(delay.as_millis() <= 200);
+    }
+
+    #[test]
+    fn test_reset() {
+        let tracker = LatencyTracker::new();
+        let now_ms = std::time::SystemTime::now()
+            .duration_since(std::time::UNIX_EPOCH)
+            .unwrap()
+            .as_millis() as u64;
+
+        tracker.record_block(make_block_id(0), now_ms - 100, 0);
+        assert_eq!(tracker.sample_count(), 1);
+
+        tracker.reset();
+        assert_eq!(tracker.sample_count(), 0);
+    }
+}
diff --git a/crates/synor-dag/src/lib.rs b/crates/synor-dag/src/lib.rs
index a748239..bd9c680 100644
--- a/crates/synor-dag/src/lib.rs
+++ b/crates/synor-dag/src/lib.rs
@@ -23,13 +23,20 @@
 #![allow(dead_code)]
 
 pub mod dag;
+pub mod dagknight;
 pub mod ghostdag;
+pub mod latency;
 pub mod ordering;
 pub mod pruning;
 pub mod reachability;
 
 pub use dag::{BlockDag, BlockRelations, DagError};
+pub use dagknight::{
+    calculate_optimal_k, estimate_throughput, ConfirmationConfidence, ConfirmationStatus,
+    DagKnightManager,
+};
 pub use ghostdag::{GhostdagData, GhostdagError, GhostdagManager};
+pub use latency::{LatencySample, LatencyStats, LatencyTracker};
 pub use ordering::{BlockOrdering, OrderedBlock};
 pub use pruning::{PruningConfig, PruningManager};
 pub use reachability::{ReachabilityError, ReachabilityStore};
@@ -62,6 +69,78 @@ pub const FINALITY_DEPTH: u64 = 86400; // ~2.4 hours at 10 bps
 /// Pruning depth - how many blocks to keep in memory.
 pub const PRUNING_DEPTH: u64 = 288_000; // ~8 hours at 10 bps
 
+// ============================================================================
+// DAGKnight Block Rate Configurations
+// ============================================================================
+
+/// Block rate configuration for different throughput modes.
+#[derive(Clone, Copy, Debug, PartialEq)]
+pub enum BlockRateConfig {
+    /// Standard 10 BPS (100ms block time) - default GHOSTDAG
+    Standard,
+    /// Enhanced 32 BPS (~31ms block time) - Phase 13 upgrade
+    Enhanced,
+    /// Maximum 100 BPS (10ms block time) - stretch goal
+    Maximum,
+}
+
+impl BlockRateConfig {
+    /// Returns the blocks per second for this configuration.
+    pub const fn bps(&self) -> f64 {
+        match self {
+            BlockRateConfig::Standard => 10.0,
+            BlockRateConfig::Enhanced => 32.0,
+            BlockRateConfig::Maximum => 100.0,
+        }
+    }
+
+    /// Returns the target block time in milliseconds.
+    pub const fn block_time_ms(&self) -> u64 {
+        match self {
+            BlockRateConfig::Standard => 100,
+            BlockRateConfig::Enhanced => 31,
+            BlockRateConfig::Maximum => 10,
+        }
+    }
+
+    /// Returns the recommended k parameter for this block rate.
+    /// Higher block rates need higher k to accommodate network latency.
+    pub const fn recommended_k(&self) -> u8 {
+        match self {
+            BlockRateConfig::Standard => 18,
+            BlockRateConfig::Enhanced => 32,
+            BlockRateConfig::Maximum => 64,
+        }
+    }
+
+    /// Returns the merge depth adjusted for block rate.
+    pub const fn merge_depth(&self) -> u64 {
+        match self {
+            BlockRateConfig::Standard => 3600,      // ~6 min at 10 bps
+            BlockRateConfig::Enhanced => 11520,     // ~6 min at 32 bps
+            BlockRateConfig::Maximum => 36000,      // ~6 min at 100 bps
+        }
+    }
+
+    /// Returns the finality depth adjusted for block rate.
+    pub const fn finality_depth(&self) -> u64 {
+        match self {
+            BlockRateConfig::Standard => 86400,     // ~2.4 hours at 10 bps
+            BlockRateConfig::Enhanced => 276480,    // ~2.4 hours at 32 bps
+            BlockRateConfig::Maximum => 864000,     // ~2.4 hours at 100 bps
+        }
+    }
+
+    /// Returns the pruning depth adjusted for block rate.
+    pub const fn pruning_depth(&self) -> u64 {
+        match self {
+            BlockRateConfig::Standard => 288_000,   // ~8 hours at 10 bps
+            BlockRateConfig::Enhanced => 921_600,   // ~8 hours at 32 bps
+            BlockRateConfig::Maximum => 2_880_000,  // ~8 hours at 100 bps
+        }
+    }
+}
+
 #[cfg(test)]
 mod tests {
     use super::*;
diff --git a/docs/PLAN/PHASE13-AdvancedEnhancements/README.md b/docs/PLAN/PHASE13-AdvancedEnhancements/README.md
new file mode 100644
index 0000000..acddcfe
--- /dev/null
+++ b/docs/PLAN/PHASE13-AdvancedEnhancements/README.md
@@ -0,0 +1,98 @@
+# Phase 13: Advanced Blockchain Enhancements
+
+> Research-driven enhancements to GHOSTDAG, quantum cryptography, Layer 2, and gateway architecture
+
+## Overview
+
+Phase 13 builds upon Synor's already advanced foundation:
+- GHOSTDAG consensus (k=18, 10 BPS)
+- Hybrid Ed25519 + Dilithium3 quantum-resistant signatures
+- Complete L2 stack (Compute, Storage, Database, Hosting)
+- Full gateway architecture with CID support
+
+## Milestones
+
+### Milestone 1: DAGKnight Protocol (Weeks 1-5)
+**Priority: HIGH**
+
+DAGKnight eliminates fixed network delay assumptions, making consensus adaptive.
+
+| Task | Status | File |
+|------|--------|------|
+| DAGKnight core algorithm | Pending | `crates/synor-dag/src/dagknight.rs` |
+| Network latency tracker | Pending | `crates/synor-dag/src/latency.rs` |
+| 32 BPS upgrade | Pending | `crates/synor-dag/src/lib.rs` |
+| 100 BPS stretch goal | Pending | `crates/synor-consensus/src/difficulty.rs` |
+
+### Milestone 2: Enhanced Quantum Cryptography (Weeks 6-9)
+**Priority: MEDIUM-HIGH**
+
+Add NIST-standardized backup algorithms for defense in depth.
+
+| Task | Status | File |
+|------|--------|------|
+| SPHINCS+ (SLH-DSA) integration | Pending | `crates/synor-crypto/src/sphincs.rs` |
+| FALCON (FN-DSA) integration | Pending | `crates/synor-crypto/src/falcon.rs` |
+| Algorithm negotiation protocol | Pending | `crates/synor-crypto/src/negotiation.rs` |
+
+### Milestone 3: ZK-Rollup Foundation (Weeks 10-14)
+**Priority: HIGH**
+
+Lay groundwork for ZK-rollup support for massive L2 scaling.
+
+| Task | Status | File |
+|------|--------|------|
+| ZK-SNARK proof system (Halo2/PLONK) | Pending | `crates/synor-zk/src/lib.rs` |
+| Circuit definitions | Pending | `crates/synor-zk/src/circuit.rs` |
+| Rollup state manager | Pending | `crates/synor-zk/src/rollup/mod.rs` |
+| ZK-Rollup bridge contract | Pending | `contracts/zk-rollup/src/lib.rs` |
+
+### Milestone 4: Gateway Enhancements (Weeks 15-18)
+**Priority: MEDIUM**
+
+Improve gateway infrastructure following IPFS best practices.
+
+| Task | Status | File |
+|------|--------|------|
+| Subdomain gateway isolation | Pending | `crates/synor-storage/src/gateway/mod.rs` |
+| Trustless verification (CAR files) | Pending | `crates/synor-storage/src/car.rs` |
+| Multi-pin redundancy | Pending | `crates/synor-storage/src/pinning.rs` |
+| CDN integration | Pending | `crates/synor-storage/src/gateway/cache.rs` |
+
+## Research References
+
+### GHOSTDAG/DAGKnight
+- [Kaspa Official](https://kaspa.org/) - GHOSTDAG reference implementation
+- [PHANTOM GHOSTDAG Paper](https://eprint.iacr.org/2018/104.pdf) - Academic foundation
+- Kaspa 2025 roadmap: DAGKnight, 32 BPS → 100 BPS progression
+
+### Quantum Cryptography (NIST PQC)
+- **FIPS 203 (ML-KEM)**: CRYSTALS-Kyber - key encapsulation (already implemented as Kyber768)
+- **FIPS 204 (ML-DSA)**: CRYSTALS-Dilithium - signatures (already implemented as Dilithium3)
+- **FIPS 205 (SLH-DSA)**: SPHINCS+ - hash-based backup signatures
+- **FIPS 206 (FN-DSA)**: FALCON - compact lattice signatures
+
+### Layer 2 Scaling
+- ZK-Rollups: Validity proofs, 10-20 min finality, 2,000-4,000 TPS
+- Optimistic Rollups: 7-day challenge period, 1,000-4,000 TPS
+- State Channels: Instant micropayments, zero fees
+
+### Gateway Best Practices (IPFS)
+- Subdomain gateways for origin isolation
+- CAR files for trustless verification
+- Multi-pin redundancy for availability
+- CDN edge caching for performance
+
+## Fee Distribution Model
+
+| Fee Type | Burn | Stakers | Treasury | Validators/Operators |
+|----------|------|---------|----------|----------------------|
+| Transaction Fees | 10% | 60% | 20% | 10% |
+| L2 Service Fees | 10% | - | 20% | 70% |
+
+## Success Metrics
+
+- **DAGKnight**: Achieve 32 BPS with <1% orphan rate
+- **Quantum**: SPHINCS+ and FALCON signatures verified in <10ms
+- **ZK-Rollup**: 1,000 TPS with <20 minute finality
+- **Gateway**: <100ms TTFB for cached content globally