5. Value Circulation System

5.1 Value Circulation Diagram

┌─────────────────────────────────────────────────────────┐
│                    Enclave Value Circulation             │
└─────────────────────────────────────────────────────────┘

Users Use Enclave Privacy
    ↓
Generate Zero-Knowledge Proofs
    ↓
Pay Gas Fees ($E) to Nodes
    ↓
Nodes Earn Revenue
    ↓
Pay Protocol Fees
    ↓
Protocol Revenue
    ↓
┌─────────────────┐
│  Repurchase &   │
│  Burn $E        │
└─────────────────┘
    ↓
Burn Amount Increases
    ↓
Mining Amount Increases from Year 7
    ↓
┌─────────────────┐
│  Mining Reward  │
│  Distribution   │
│  (80% NFT)      │
│  (20% Oracle)   │
└─────────────────┘
    ↓
Incentivize Node Operation
    ↓
Network More Secure & Stable
    ↓
More Users Use
    ↓
(Cycle Continues)

5.2 Value Creation

5.2.1 User Value

• Privacy Protection: Completely private asset allocation
• Low Cost: Batch operations reduce Gas costs
• Cross-Chain Support: Supports multi-chain asset allocation
• Ease of Use: Simple interfaces and processes

5.2.2 Node Value

• Staking Rewards: Nodes earn rewards by locking tokens
• Gas Fee Revenue: Requesters pay $E tokens as Gas fees, nodes earn proof generation service fees
• Fee Sharing: Receive 10% of protocol fees
• Mining Rewards: Receive 80% of mining output
• Network Governance: Participate in network governance decisions

5.2.3 Ecosystem Value

• Developer Incentives: Ecosystem fund supports developers
• Partners: Strategic partners receive support
• Community Building: Community activities receive rewards
• Long-term Development: Sustainable economic model

5.3 Value Capture

5.3.1 Protocol Revenue

• Transaction Fees: Users pay fees when using Enclave Privacy
• Cross-Chain Fees: Fees charged for cross-chain operations
• Premium Features: Fees charged for premium features

5.3.2 Node Revenue

• Gas Fee Revenue: When requesters use the Enclave Privacy system, they pay $E tokens as Gas fees to nodes
  • This is one of the main revenue sources for nodes
  • Gas fees are used to cover the costs of zero-knowledge proof generation services
  • Fees are determined based on proof type and complexity
  • Directly incentivizes nodes to provide high-quality proof generation services
  • Different from traditional blockchains, Enclave uses $E tokens as Gas fees, creating token use cases

5.3.3 Token Value

• Scarcity: Burning mechanism reduces supply
• Demand: Node staking locks tokens
• Use Cases: Governance, staking, payments, etc.

5.3.4 Network Effects

• User Growth: More users bring more transactions
• Node Growth: More nodes bring a more secure network
• Ecosystem Development: Ecosystem development brings more value

---

[← Previous: Core Mechanism Design](./04-core-mechanism-design) | [Next: Incentive Mechanism →](./06-incentive-mechanism)