4. Core Mechanism Design

4.1 Mining Mechanism

4.1.1 Mining Rules for the First 6 Years

Time Range: TGE to TGE + 6 years

Mining Rules:

• Fixed annual mining: 5,000,000 $E (5 million/year)
• Total for first 6 years: 30,000,000 $E (30 million)
• 5% of maximum supply per year
• Fixed release, unaffected by burn amount

Distribution:

• NFT mining rewards: 80% (4,000,000 $E per year)
• Oracle multi-signature node rewards: 20% (1,000,000 $E per year)

4.1.2 Mining Rules from Year 7 Onwards

Time Range: After TGE + 6 years

Mining Rules:

• Annual mining amount = min(previous year's burn amount, 2,000,000 $E)
• Maximum mining amount: 2,000,000 $E/year (2 million/year)
• 2% of maximum supply per year (if reaching the limit)

Calculation Logic:

1. Query the total burn amount of the previous year (year - 1)
2. If previous year's burn amount ≥ 2,000,000 $E:
   • Current year's mining amount = 2,000,000 $E
3. If previous year's burn amount < 2,000,000 $E:
   • Current year's mining amount = previous year's burn amount
4. If previous year's burn amount = 0:
   • Current year's mining amount = 0

Design Purpose:

• Establish a virtuous cycle between mining and burning
• Encourage token repurchase and burning
• Ensure long-term ecosystem health

4.1.3 Mining Limitations

• Total Supply Limit: Total mining cannot exceed MAX_SUPPLY - currentSupply
• Annual Limit: Annual mining amount cannot exceed the annual mining quota
• Cumulative Limit: Cumulative mining for the first 6 years cannot exceed 30,000,000 $E

4.2 Burning Mechanism

4.2.1 Burn Sources

• Swap Repurchase: Oracle repurchases tokens from Swap and burns them
• Protocol Fees: Part of protocol fees used for repurchase and burning
• Ecosystem Revenue: Part of ecosystem revenue used for repurchase and burning

4.2.2 Burn Records

• All burn records are saved on-chain
• Records include: burn amount, timestamp, executor, reason
• Historical burn records can be queried through contracts

4.2.3 Burn Impact

• Burn amount affects mining amount from year 7 onwards
• More burning leads to higher subsequent mining amounts
• Forms a positive cycle: usage → burning → mining → incentives

4.3 Node Mechanism

4.3.1 Node NFT

• Quantity Limit: Up to 5,000 node NFTs
• Identification Method: Each NFT corresponds to a node identity
• Holder: NFT holder is the node operator
• Transfer: NFTs can be transferred, and the new holder becomes the node operator after transfer
• Node Binding: One node (zero-knowledge proof generator) can bind up to 10 NFTs, must bind at least 1 NFT to operate

4.3.2 Node Operation Requirements

Each node operator needs to meet the following technical requirements:

• Zero-Knowledge Proof Generator: Each node must run a zero-knowledge proof generator
  • Responsible for generating zero-knowledge proofs required by the Enclave Privacy system
  • Supports generation of Commitment Proof and Withdraw Proof
  • Ensures timeliness and accuracy of proof generation
  • One node can provide proof generation services for multiple NFTs
• NFT Binding Mechanism: One node can bind up to 10 NFTs, must bind at least 1 NFT
  • NFT serves as the unique identifier for node identity
  • Node must bind at least one NFT to operate, this is a prerequisite for node operation
  • Multiple NFTs can share the same node's proof generation service
  • Binding relationship improves resource utilization efficiency and reduces operational costs
  • Node operators prove their qualification to run proof generators through NFTs
  • Each NFT independently calculates rewards and status
• Node Services: Nodes need to provide stable proof generation services
  • Ensure service availability and response speed
  • Maintain node online status
  • Participate in network verification and consensus
  • Support concurrent proof generation requests for multiple NFTs

4.3.3 Node Staking

• Lock Amount: Each NFT locks 2,000 $E
• Total Locked Amount: Up to 10,000,000 $E (5,000 NFTs × 2,000 $E)
• Node Binding: One node can bind up to 10 NFTs, multiple NFTs share the same node's proof generation service
• Lock-up Period: 1 year (12 months)
• Unlock Period: 32 months linear unlock
• Monthly Unlock: Approximately 62.5 $E/NFT (2,000 $E ÷ 32 months)

4.3.4 Node Status

• Active: Active status, can receive rewards
• PendingTermination: Termination in progress, 1 day cooldown + 30 day timeout
• Terminated: Terminated, no longer receives new rewards, can claim unlocked tokens

4.3.5 Node Revenue

Node operators earn revenue through the following four methods:

1. Node's Own Tokens (2,000 $E)

   • 1 year lock-up period
   • Then 32 months linear unlock
   • Approximately 62.5 $E per month

2. Proof Generation Fees (Gas Fees) (Requesters pay $E tokens)

   • When requesters use the Enclave Privacy system, they need to pay $E tokens as Gas fees
   • Gas fees are used to cover the costs of zero-knowledge proof generation services
   • Fees are directly paid to nodes providing proof generation services
   • Fees are determined based on proof type and complexity
   • This is one of the main revenue sources for nodes
   • Different from traditional blockchain Gas fees, Enclave uses $E tokens as Gas fees, creating token use cases and value cycles

3. Fee Sharing (10% of protocol fees)

   • Real-time distribution
   • Distributed based on node contribution
   • Only earned during node operation

4. Mining Output Distribution (80% to NFTs, 20% to oracle multi-signature nodes)

   • First 6 years: Fixed 5,000,000 $E per year
   • From year 7 onwards: Dynamically adjusted, linked to burn amount

4.4 Reward Distribution Mechanism

4.4.1 O(1) Global Index Algorithm

Uses O(1) global index algorithm to achieve efficient reward distribution:

• Global State: accProducedPerNFT, accRewardPerNFT[token]
• Individual State: producedWithdrawn, rewardWithdrawn[token]
• Pending Claim: Global Index - Individual Claimed

Advantages:

• Time complexity O(1), unaffected by NFT quantity
• Low Gas costs, suitable for large-scale distribution
• Supports multi-token rewards

4.4.2 Reward Distribution Ratio

• NFT Holders: 80% of mining rewards
• Oracle Multi-signature Nodes: 20% of mining rewards
• Fee Sharing: 10% to node network

4.4.3 Reward Claiming

• Real-time Claiming: Users can claim accumulated rewards at any time
• Multi-token Support: Supports $E and multi-token rewards
• Batch Claiming: Supports one-time claiming of all token rewards

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