ALPHA_DELTA_Functional_Specification_v1.7.md
1 # ALPHA/DELTA NETWORK 2 # FUNCTIONAL SPECIFICATION 3 4 **Version:** 1.7 5 **Date:** December 27, 2025 6 **Status:** Complete Functional Requirements (Treasury, Pools & Economics) 7 8 --- 9 10 # TABLE OF CONTENTS 11 12 1. [System Overview](#1-system-overview) 13 2. [ALPHA Chain Functions](#2-alpha-chain-functions) 14 3. [DELTA Chain Functions](#3-delta-chain-functions) 15 4. [Cross-Chain Functions](#4-cross-chain-functions) 16 5. [Governance Functions](#5-governance-functions) 17 6. [Validator & Network Functions](#6-validator--network-functions) 18 7. [Economic Functions](#7-economic-functions) 19 8. [Security Functions](#8-security-functions) 20 9. [User Interface Functions](#9-user-interface-functions) 21 10. [Compliance & Audit Functions](#10-compliance--audit-functions) 22 23 --- 24 25 # 1. SYSTEM OVERVIEW 26 27 ## 1.1 Purpose 28 29 The ALPHA/DELTA Network provides sovereign-grade digital currency infrastructure for Central Banks and institutional users, combining privacy-preserving monetary transactions with transparent decentralized exchange functionality. 30 31 ## 1.2 System Components 32 33 | Component | Function | 34 |-----------|----------| 35 | ALPHA Chain | Privacy-preserving monetary layer (ZK-shielded transfers) | 36 | DELTA Chain | Exchange layer (transparent trading, private token holdings) | 37 | Locked AX Pool | Shared reserve backing all synthetic AX (sAX) on DELTA | 38 | Cross-Runtime | Bidirectional attestation between chains | 39 | Governance | Dual governance (Central Banks for ALPHA, token holders for DELTA) | 40 41 ## 1.2a Token Specifications 42 43 ### AX Token (ALPHA Chain) 44 45 | Property | Value | 46 |----------|-------| 47 | **Decimals** | 4 (1 AX = 10,000 microcredits) | 48 | **Supply Model** | Dynamic - minting ONLY via Governor GID function | 49 | **Minting** | Exclusively by registered Central Bank Governors (F-A10) | 50 | **Burning** | By Governors to reduce Outstanding Balance (F-A11) | 51 | **No Coinbase** | No block rewards, no staking rewards that mint new tokens | 52 | **No Gas** | Transaction fees are flat/formula-based, not gas-metered | 53 54 ### DX Token (DELTA Chain) 55 56 | Property | Value | 57 |----------|-------| 58 | **Decimals** | 0 (whole tokens only, 1 DX = 1 unit) | 59 | **Total Supply** | Fixed 1,000,000,000 DX at genesis | 60 | **Minting** | None - supply is permanently fixed | 61 | **Distribution** | Initial allocation to founders, investors, network pool, reward pool | 62 | **Privacy** | Token holdings are ZK-shielded (F-E30-33) | 63 64 ### Synthetic AX (sAX) 65 66 | Property | Value | 67 |----------|-------| 68 | **Purpose** | Ephemeral internal accounting for DELTA trading | 69 | **Backing** | 1:1 backed by locked AX in Locked AX Pool | 70 | **Creation** | When AX is deposited/locked on ALPHA chain | 71 | **Destruction** | When sAX is withdrawn back to private AX | 72 | **Visibility** | Public balances (transparent for trading) | 73 74 ### Fee Model (Both Chains) 75 76 - **No Gas Mechanism**: Neither chain uses Ethereum-style gas 77 - **Transaction Fees**: Flat or formula-based fees per transaction type 78 - **Fee Destination**: 100% of fees compensate validators and provers 79 - **No Fee Burning**: Fees are distributed, not burned 80 81 ## 1.3 Key Stakeholders 82 83 | Role | Description | 84 |------|-------------| 85 | Central Bank Governors | Treaty signatories who mint/burn ALPHA and govern the monetary layer | 86 | Validators | Nodes that produce blocks and maintain consensus | 87 | Provers | GPU-equipped nodes that generate ZK proofs | 88 | Traders | Users of the DELTA exchange | 89 | DX Holders | Governance participants for DELTA chain decisions | 90 91 ## 1.4 Performance Targets 92 93 | Chain | Target Throughput | Notes | 94 |-------|-------------------|-------| 95 | ALPHA | 50 TPS | Sufficient for monetary operations; scales with hardware improvements | 96 | DELTA | 1,000+ ops/sec | Exchange operations; scales with hardware improvements | 97 98 --- 99 100 # 2. ALPHA CHAIN FUNCTIONS 101 102 ## 2.1 Private Transfer Functions 103 104 ### F-A01: Private User Transfer 105 - **Description:** Transfer ALPHA between users with full privacy (sender, receiver, amount hidden) 106 - **Actors:** Any AX holder 107 - **Inputs:** Sender private key, recipient address, amount, optional memo 108 - **Outputs:** New encrypted balance records for sender and receiver 109 - **Privacy:** ZK-SNARK shielded; only proof verification status is public 110 - **Fee:** min(max(Amount × 0.00001, 1), 1000) ALPHA 111 112 ### F-A02: Balance Consolidation 113 - **Description:** Merge multiple balance records into single record 114 - **Actors:** Any AX holder 115 - **Purpose:** Reduce record count for simpler wallet management 116 - **Privacy:** Fully shielded operation 117 - **Fee:** Same as private transfer (F-A01 formula) 118 119 ### F-A03: Balance Split 120 - **Description:** Split single balance record into multiple records 121 - **Actors:** Any AX holder 122 - **Purpose:** Prepare specific denominations for future transfers 123 - **Fee:** Same as private transfer (F-A01 formula) 124 125 ### F-A04: View Key Generation 126 - **Description:** Generate read-only keys for third-party balance/transaction viewing 127 - **Actors:** Any AX holder 128 - **Use Cases:** Auditor access, family visibility, estate planning 129 - **Scope Options:** Full history, specific time range, specific transactions 130 131 ### F-A05: View Key Revocation 132 - **Description:** Invalidate previously issued view keys 133 - **Actors:** Key issuer 134 - **Effect:** Immediate termination of third-party viewing rights 135 136 --- 137 138 ## 2.2 Governor Mint/Burn Functions 139 140 ### F-A10: ALPHA Minting 141 - **Description:** Create new AX tokens (increases circulating supply) 142 - **Actors:** Registered Central Bank Governors only 143 - **CRITICAL:** This is the ONLY mechanism for creating new AX tokens. There is NO coinbase reward, NO block reward, NO staking reward, and NO other minting mechanism. 144 - **Constraints:** 145 - Cannot exceed Governor's Mint Limit 146 - Outstanding Balance updated atomically 147 - Fully transparent operation (public record) 148 - **Destination:** Governor specifies recipient address per mint operation 149 - **Whitelist (Optional):** GID can enforce destination whitelist; if enabled, mints only to whitelisted addresses 150 - **Note:** GID contract never holds tokens — control/operational system only 151 152 ### F-A11: ALPHA Burning 153 - **Description:** Destroy AX tokens (decreases circulating supply) 154 - **Actors:** Registered Central Bank Governors only 155 - **Constraints:** No limit on burn amount; always permitted 156 - **Effect:** Outstanding Balance reduced; supply auditably decreased 157 158 ### F-A12: Mint Limit Adjustment 159 - **Description:** Modify a Governor's maximum mint capacity 160 - **Actors:** Governor governance vote 161 - **Threshold:** ≥67% of all Governors must approve 162 - **Voting Period:** 7 days 163 164 ### F-A13: Outstanding Balance Query 165 - **Description:** View any Governor's current minted-minus-burned balance 166 - **Actors:** Any user (public data) 167 - **Display:** Real-time via ALPHA-Scanner 168 169 --- 170 171 ## 2.3 Governor Identity (GID) Functions 172 173 ### F-A20: GID Registration 174 - **Description:** Create new Governor Identity on-chain 175 - **Prerequisites:** 176 - Treaty ratification complete 177 - ≥67% existing Governor approval 178 - 5-epoch validator warm-up complete 179 - **Multisig Requirements:** n ≥ 5 required signatures; min = n + ⌊n/2⌋ signers 180 - **Validator Link:** GID must register a validator address; minting requires linked validator in good standing 181 - **Backup Validator:** Governor may register backup validator to mitigate minting suspension risk 182 183 ### F-A21: GID Signer Addition 184 - **Description:** Add authorized signer to GID multisig 185 - **Actors:** Existing GID signers (threshold approval) 186 - **Constraint:** Cannot exceed max signers (2n - 1) 187 188 ### F-A22: GID Signer Removal 189 - **Description:** Remove signer from GID multisig 190 - **Actors:** Existing GID signers (threshold approval) 191 - **Constraint:** Cannot go below minimum signers 192 193 ### F-A23: GID Signer Rotation 194 - **Description:** Replace one signer with another in single operation 195 - **Actors:** Existing GID signers (threshold approval) 196 - **Purpose:** Key rotation without exposure window 197 198 ### F-A24: GID Emergency Freeze 199 - **Description:** Suspend a Governor's minting capability via governance 200 - **Actors:** Any Governor can propose; ≥67% must approve 201 - **Effect:** Minting disabled; burning still permitted; voting rights retained 202 - **Use Cases:** Key compromise, treaty violation, operational failure 203 204 ### F-A25: GID Recovery/Transfer 205 - **Description:** Transfer Mint Limit and Outstanding Balance to new GID 206 - **Trigger:** After emergency freeze, with new GID prepared 207 - **Threshold:** ≥67% Governor approval 208 - **Effect:** Old GID permanently disabled; new GID fully operational 209 210 ### F-A26: Validator Misbehavior Minting Suspension 211 - **Description:** Automatic minting suspension when linked validator misbehaves 212 - **Trigger:** Linked validator loses CLP, is slashed, or ejected from active set 213 - **Effect:** Minting disabled until validator restored to good standing 214 - **Mitigation:** Backup validator (if registered) can restore minting capability 215 - **Note:** Burning and voting rights unaffected; slashing penalties still apply 216 217 ### F-A27: GID Unfreeze 218 - **Description:** Restore minting capability after governance freeze (F-A24) 219 - **Prerequisites:** Issue documented as resolved 220 - **Threshold:** ≥67% Governor approval 221 - **Effect:** Minting restored immediately upon approval 222 223 ### F-A28: National Split Processing 224 - **Description:** Handle Governor restructuring when nation splits into multiple countries 225 - **Trigger:** Treaty amendment documenting national split 226 - **Immediate Effects:** 227 - Original Governor suspended (minting frozen, voting suspended) 228 - Burning still allowed (to reduce Outstanding Balance) 229 - Validator continues if technically maintained 230 - **Process:** 231 - Each successor nation applies as new Governor (full onboarding) 232 - Outstanding Balance divided per treaty amendment terms 233 - Original GID permanently disabled after transfer complete 234 - **Threshold:** 100% quorum, ≥67% approval for treaty amendment 235 - **Timeline:** 3-6 months typical 236 237 ### F-A29: National Merger Processing 238 - **Description:** Handle Governor restructuring when nations merge into one 239 - **Trigger:** Treaty amendment documenting national merger 240 - **Immediate Effects:** 241 - All merging Governors suspended (minting frozen, voting suspended) 242 - Burning still allowed 243 - Validators continue if maintained 244 - **Process:** 245 - Successor nation applies as new Governor (full onboarding) 246 - Outstanding Balances combined (sum of all merging Governors) 247 - Mint Limits transferred or renegotiated 248 - All original GIDs permanently disabled 249 - **Threshold:** 100% quorum, ≥67% approval for treaty amendment 250 - **Timeline:** 3-6 months typical 251 252 --- 253 254 ## 2.4 Policy Account Functions 255 256 Policy Accounts are programmable ALPHA accounts that enforce spending conditions. They are essential for atomic swaps, escrow, treasury management, and conditional payments. 257 258 ### F-A30: Policy Account Creation 259 - **Description:** Create account with programmable spending rules 260 - **Actors:** Any AX holder 261 - **Inputs:** Initial funding amount, policy type, policy parameters 262 - **Policy Types:** HTLC, Time Lock, Spending Limit, Multi-sig, Escrow 263 - **Output:** Policy account address with locked funds 264 - **Privacy:** Account existence public; balance and policy details can be private or public 265 266 ### F-A31: Policy Modification 267 - **Description:** Update policy rules on existing account 268 - **Actors:** Policy owner (or authorized parties per policy rules) 269 - **Constraints:** Some policies immutable once created (e.g., HTLC hash) 270 - **Use Cases:** Extend time lock, add/remove signers, adjust limits 271 272 ### F-A32: Conditional Transfer 273 - **Description:** Execute transfer only if policy conditions satisfied 274 - **Actors:** Authorized party (varies by policy type) 275 - **Validation:** On-chain verification of condition satisfaction 276 - **Effect:** Funds released to designated recipient if conditions met 277 278 ### F-A33: Time-Locked Release 279 - **Description:** Release funds after specified time or block height 280 - **Policy Parameters:** Release time (absolute or relative), beneficiary address 281 - **Trigger:** Automatic eligibility after time passes; beneficiary claims 282 - **Use Cases:** Vesting schedules, delayed payments, inheritance 283 284 ### F-A34: Multi-Party Authorization 285 - **Description:** Require multiple signatures to authorize spending 286 - **Policy Parameters:** Required signers (N), total signers (M), signer addresses 287 - **Threshold:** N-of-M signatures required for any transfer 288 - **Use Cases:** Treasury management, joint accounts, corporate controls 289 290 ### F-A35: Hash-Locked Transfer (HTLC) 291 - **Description:** Release funds when hash preimage revealed 292 - **Policy Parameters:** Hash commitment, timeout period, recipient address, refund address 293 - **Claim Path:** Recipient reveals preimage → funds released to recipient 294 - **Refund Path:** Timeout expires without claim → funds returned to sender 295 - **Critical For:** Atomic swaps with external chains (BTC, ETH, TRX, SOL) 296 - **Timelock:** 48 hours default (matches ASG specification) 297 298 ### F-A36: Escrow Account 299 - **Description:** Third-party controlled release of funds 300 - **Policy Parameters:** Depositor, beneficiary, escrow agent, release conditions 301 - **Release:** Escrow agent authorizes release to beneficiary or refund to depositor 302 - **Use Cases:** Trade settlement, dispute resolution, milestone payments 303 304 ### F-A37: Spending Limit Policy 305 - **Description:** Restrict maximum spending per transaction or time period 306 - **Policy Parameters:** Per-transaction limit, daily/weekly/monthly limit 307 - **Enforcement:** Transfers exceeding limit rejected 308 - **Use Cases:** Operational accounts, allowances, fraud prevention 309 310 ### F-A38: Policy Account Query 311 - **Description:** View policy account status and rules 312 - **Actors:** Account owner, or anyone if policy is public 313 - **Data Returned:** Balance, policy type, policy parameters, lock status 314 - **Privacy:** Respects policy privacy settings 315 316 --- 317 318 # 3. DELTA CHAIN FUNCTIONS 319 320 ## 3.1 Spot Trading Functions 321 322 ### F-D01: Limit Order Placement 323 - **Description:** Place buy/sell order at specified price 324 - **Actors:** Any DELTA user with deposited funds 325 - **Inputs:** Trading pair, side (buy/sell), price, quantity 326 - **Order Book:** Publicly visible in real-time 327 - **Fee:** Maker 0.025% / Taker 0.075% (governance-adjustable; tiered rates may be introduced without software upgrade) 328 329 ### F-D02: Market Order Placement 330 - **Description:** Execute immediate trade at best available price 331 - **Actors:** Any DELTA user with deposited funds 332 - **Execution:** Instant matching against order book 333 - **Slippage:** User-configurable maximum tolerance 334 335 ### F-D02a: Stop-Loss Order (Stop-Market) 336 - **Description:** Trigger market order when price reaches stop price 337 - **Actors:** Any DELTA user with deposited funds 338 - **Inputs:** Trading pair, side, stop price, quantity 339 - **Trigger:** Executes as market order when last trade price reaches stop price 340 - **Use Case:** Limit downside losses; lock in profits 341 342 ### F-D02b: Stop-Limit Order 343 - **Description:** Trigger limit order when price reaches stop price 344 - **Actors:** Any DELTA user with deposited funds 345 - **Inputs:** Trading pair, side, stop price, limit price, quantity 346 - **Trigger:** Places limit order at limit price when last trade price reaches stop price 347 - **Risk:** May not execute if price gaps past limit price 348 349 ### F-D03: Order Cancellation 350 - **Description:** Remove unfilled order from order book 351 - **Actors:** Order owner only 352 - **Effect:** Immediate removal; reserved funds released 353 354 ### F-D04: Order Modification 355 - **Description:** Adjust price or quantity of existing order 356 - **Actors:** Order owner only 357 - **Implementation:** Cancel-and-replace with priority preservation option 358 359 ### F-D04a: Time-in-Force Options 360 - **Description:** Control how long orders remain active 361 - **Options:** 362 - **GTC (Good-Till-Cancelled):** Default; remains until filled or manually cancelled 363 - **IOC (Immediate-Or-Cancel):** Fill immediately what's possible; cancel unfilled remainder 364 - **FOK (Fill-Or-Kill):** Fill entire order immediately or reject completely 365 - **Day:** Expires at end of trading day (00:00 UTC) 366 - **Applicability:** Applies to Limit, Stop-Loss, and Stop-Limit orders 367 368 ### F-D05: Trade Execution 369 - **Description:** Match buy and sell orders 370 - **Algorithm:** Price-time priority (best price first, then earliest) 371 - **Settlement:** Atomic on-chain settlement (non-custodial) 372 - **Transparency:** All trades publicly recorded 373 - **Minimum Order Size:** 100 AX equivalent value (governance-adjustable per pair) 374 375 ### F-D06: Order Book Query 376 - **Description:** View current bids and asks for any trading pair 377 - **Actors:** Any user (public data) 378 - **Data:** Price, quantity, order count per price level 379 380 ### F-D07: Open Order Limits 381 - **Description:** Maximum number of open orders per user per trading pair 382 - **Limit:** 20 orders per user per pair (buy and sell combined) 383 - **Governance:** Adjustable via DELTA governance 384 - **Purpose:** Prevent order book spam and manipulation 385 386 --- 387 388 ## 3.2 Perpetual Futures Functions 389 390 ### F-D10: Position Opening 391 - **Description:** Open leveraged long or short position 392 - **Actors:** Any DELTA user with sufficient margin 393 - **Inputs:** Trading pair, direction (long/short), size, leverage 394 - **Leverage Limits:** 50x for fiat pairs; 20x for crypto pairs 395 396 ### F-D11: Position Closing 397 - **Description:** Close existing futures position 398 - **Actors:** Position owner 399 - **Settlement:** Profit/loss calculated against mark price 400 401 ### F-D12: Position Sizing/Modification 402 - **Description:** Add to or reduce existing position 403 - **Actors:** Position owner 404 - **Margin:** Automatically adjusted based on new size 405 406 ### F-D13: Automated Liquidation 407 - **Description:** Force-close positions below maintenance margin 408 - **Maintenance Margin:** 75% of initial margin (governance-adjustable) 409 - **Trigger:** Position equity falls below maintenance margin requirement 410 - **Execution:** Market order to close; insurance fund covers shortfall 411 - **Transparency:** All liquidations publicly recorded 412 413 ### F-D14: Validator Liquidation 414 - **Description:** Backup liquidation for large threshold positions 415 - **Trigger:** Automated liquidation fails or insufficient liquidity 416 - **Actors:** Active validators can trigger 417 - **Purpose:** Protect insurance fund from depletion 418 419 ### F-D15: Funding Rate Payment 420 - **Description:** Periodic settlement between longs and shorts 421 - **Frequency:** Every 8 hours 422 - **Calculation:** Based on premium/discount to spot price 423 - **Purpose:** Keep perpetual price aligned with spot 424 425 ### F-D16: Mark Price Calculation 426 - **Description:** Determine fair price for margin calculations 427 - **Sources:** Spot price (weighted) + oracle data 428 - **Manipulation Resistance:** Trimean aggregation of multiple sources 429 430 ### F-D17: ALPHA Price Derivation 431 - **Description:** Calculate AX/XAU and AX/fiat prices for perpetuals, mark price, and off-ramp 432 - **Oracle Source:** Chainlink (primary); governance may approve additional providers (ALPHA governance only) 433 - **Aggregation:** If multiple sources, each rate is TRIMMEAN of all source rates 434 - **Input Data:** 435 - Top 20 fiat/USD pairs (1-minute feed) 436 - XAU/USD pair (1-minute feed) 437 - **Derivation Steps:** 438 1. Calculate 21 fiat/XAU pairs: `fiat/XAU = fiat/USD ÷ XAU/USD` 439 2. Apply genesis constant K (fixed at genesis, expected ~0.35) 440 3. Calculate: `AX/XAU = K / Σ[(1/21) / (fiat(n)/XAU)]` 441 4. Derive AX/fiat for all 21 currencies from AX/XAU 442 - **Rate Types:** 443 - **Perpetuals/Mark Price:** 1-minute feed (real-time) 444 - **Off-Ramp Redemption:** 1000-minute TWAP (tamper-resistant) 445 - **Failover:** 446 - <10 min oracle delay: Use last valid value 447 - >10 min delay: Lock fiat rates 448 - >60 min: Governor override (≥80% vote required) 449 450 --- 451 452 ## 3.3 Locked AX Pool & Deposit/Withdrawal Functions 453 454 The Locked AX Pool is a shared reserve on the ALPHA chain that backs all synthetic AX (sAX) balances on DELTA. When users deposit, their ALPHA is locked (not burned). When users withdraw, ALPHA is unlocked from this pool. All DELTA trading, fees, and settlements occur in synthetic AX (sAX), with the pool ensuring 1:1 backing. 455 456 ### F-D20: ALPHA Deposit to DELTA 457 - **Description:** Lock ALPHA to receive synthetic AX (sAX) trading balance 458 - **Minimum Amount:** 100 AX 459 - **Fee:** Standard transfer fee per F-A01: min(max(Amount × 0.00001, 1), 1000) ALPHA 460 - **Timeout:** 10 minutes maximum (operation cancelled if not completed) 461 - **Pending Limit:** 1 pending operation per address 462 - **Process:** 463 1. User's ALPHA record consumed on ALPHA chain 464 2. ALPHA locked into shared Locked AX Pool 465 3. Cross-runtime attestation confirms lock 466 4. Synthetic ALPHA balance credited on DELTA chain (net of fee) 467 - **Effect:** Private ALPHA → Public synthetic AX (sAX) (trading balance) 468 - **Pool Accounting:** Locked AX Pool increases by deposit amount 469 470 ### F-D21: ALPHA Withdrawal from DELTA 471 - **Description:** Convert synthetic AX (sAX) back to private AX 472 - **Minimum Amount:** 100 AX 473 - **Fee:** Standard transfer fee per F-A01: min(max(Amount × 0.00001, 1), 1000) ALPHA 474 - **Timeout:** 10 minutes maximum (operation cancelled and sAX refunded if not completed) 475 - **Pending Limit:** 1 pending operation per address 476 - **Process:** 477 1. Synthetic ALPHA balance debited on DELTA chain 478 2. Cross-runtime attestation triggers unlock 479 3. ALPHA unlocked from Locked AX Pool 480 4. New private AX record created at user's address (net of fee) 481 - **Effect:** Public synthetic AX (sAX) → Private ALPHA record 482 - **Pool Accounting:** Locked AX Pool decreases by withdrawal amount 483 484 ### F-D22: Synthetic Balance Query 485 - **Description:** View deposited trading balance (synthetic AX (sAX)) 486 - **Actors:** Balance owner (or anyone, as DELTA trading balances are public) 487 - **Data:** Available balance, reserved (in orders), total 488 489 ### F-D23: Locked Pool Integrity 490 - **Description:** Ensure Locked AX Pool always equals total synthetic AX (sAX) 491 - **Invariant:** Locked AX Pool = Sum of all synthetic AX (sAX) balances + Operating Revenue + Insurance Fund 492 - **Verification:** Continuous on-chain verification; any discrepancy halts operations 493 494 ### F-D24: Earnings Transfer (sAX Dividends → ALPHA) 495 - **Description:** Transfer accumulated sAX dividends to user's registered ALPHA address 496 - **Actors:** Any DELTA user with pending earnings 497 - **Earnings Sources:** Trading revenue distributions, validator rewards, governance participation rewards 498 - **Auto-Claim on Login:** 499 - When a DELTA user logs in with pending sAX dividends, the system automatically initiates a transfer **only if** the pending amount ≥ 100 AX (minimum withdrawal threshold) 500 - If pending earnings < 100 AX, they accumulate until reaching the threshold 501 - This prevents small transfers where fees would be disproportionate to the earnings 502 - **Manual Claim:** Users can manually claim any amount ≥ 100 AX at any time 503 - **Fee:** Standard transfer fee per F-A01: min(max(Amount × 0.00001, 1), 1000) ALPHA 504 - **Process:** 505 1. User registers ALPHA address for earnings transfers (one-time setup) 506 2. Earnings accumulate in pending balance from revenue distributions 507 3. On login (or manual claim), if pending ≥ 100 AX, transfer is initiated 508 4. sAX deducted from operating revenue, ALPHA unlocked from pool to user's ALPHA address 509 - **Transparency:** All earnings distributions and transfers are publicly recorded 510 511 --- 512 513 ## 3.4 Atomic Swap Gateway (ASG) Functions 514 515 The ASG enables trustless ALPHA ↔ external crypto swaps using an escrow-based atomic swap model. ASG functionality is partially built into the DELTA validator binary. 516 517 ### F-D30: ASG Operator Registration 518 - **Description:** Register as ASG operator for one or more external chains 519 - **Eligibility:** Any DELTA validator 520 - **Requirements:** 521 - Operate full node on each external chain (BTC, ETH, SOL, TRX) 522 - ASG system holds private keys to external node 523 - Register external node with DELTA ASG service during configuration 524 - Maintain gas/fee balances for external chain operations 525 - **Liveness:** If external node goes offline, ASG operations cease for that chain 526 - **Gateway:** Each ASG operator maintains their own public gateway interface (visible on Scanner) 527 528 ### F-D31: Order Publication 529 - **Description:** Publish and share swap orders across ASG network 530 - **Outbound Orders (ALPHA → External):** 531 - DELTA-generated orders shared across all ASGs servicing same external token 532 - Published to external world via operator gateways 533 - **Inbound Orders (External → ALPHA):** 534 - External users' orders to acquire ALPHA 535 - Shared internally on DELTA DEX 536 - External users can choose from multiple ASG endpoints (listed on Scanner) 537 538 ### F-D32: Swap Execution (Internal User) 539 - **Description:** Internal user accepts external offer to swap sAX for external crypto 540 - **Process:** 541 1. User transfers sAX to ASG-generated order address (not operator-generated; spoof-proof) 542 2. User provides destination wallet address for external coin 543 3. ASG waits for external user to fund one-time transaction address on external chain 544 4. External user provides destination sAX address 545 5. Within 24 hours: both sides comply, or transaction(s) reversed 546 - **Settlement:** ASG code controls both ALPHA-side and external chain operations 547 548 ### F-D33: Swap Execution (External User) 549 - **Description:** External user initiates swap to acquire ALPHA 550 - **Process:** 551 1. External user selects ASG endpoint and available order 552 2. External user funds one-time external chain address 553 3. External user provides destination sAX address 554 4. ASG verifies funding and executes swap 555 5. Within 24 hours: both sides comply, or transaction(s) reversed 556 557 ### F-D34: Swap Timeout/Reversal 558 - **Description:** Automatic reversal if swap not completed 559 - **Timelock:** 24 hours from initiation 560 - **Effect:** Both sides' funds returned to origin 561 562 ### F-D35: Swap Fee 563 - **Description:** Fee charged on completed swaps 564 - **Rate:** 0.2% of swap value 565 - **Minimum:** 10 AX 566 - **Maximum:** 10,000 AX 567 - **Currency:** Taken in sAX 568 - **Revenue Split:** 50% to ASG operator address, 50% to DELTA revenue stream 569 570 ### F-D36: AML Screening 571 - **Description:** Automated sanction list checking on external assets 572 - **Integration:** Third-party APIs (Chainalysis, Elliptic, TRM Labs) 573 - **Sanctioned Asset Handling:** 574 - Native tokens (BTC, ETH, TRX, SOL): Returned to sender 575 - Non-native tokens (USDT, USDC): Confiscated 576 - ALPHA: Never confiscated; always returned 577 578 ### F-D37: Supported External Chains 579 - **Description:** External blockchains supported by ASG 580 - **Launch Chains:** 581 - Bitcoin (BTC): BTC only 582 - Ethereum (ETH): ETH, ERC-20 USDT, ERC-20 USDC, major ERC-20 tokens 583 - Tron (TRX): TRX, TRC-20 USDT, TRC-20 USDC, major TRC-20 tokens 584 - Solana (SOL): SOL, major SPL tokens 585 - **Expansion:** Additional chains via governance approval 586 - **Note:** ASG system includes chain-specific control mechanisms for each supported external chain 587 588 --- 589 590 ## 3.5 Fiat Off-Ramp Functions 591 592 *Note: Off-ramp UI is accessed via the DELTA interface, but only operates on unlocked ALPHA on the ALPHA chain. Users with synthetic AX (sAX) (sAX) must withdraw to private AX before initiating off-ramp.* 593 594 ### F-D40: Off-Ramp Request 595 - **Description:** Request fiat redemption from a Governor 596 - **Actors:** Any AX holder (private AX, not synthetic) 597 - **Inputs:** Amount, target Governor, KYC ID code (see F-D44) 598 - **Prerequisite:** Synthetic ALPHA must be withdrawn to private AX first 599 - **ALPHA Handling:** Escrowed in Governor's redemption account pending settlement 600 - **Escrow Visibility:** Visible on ALPHA-Scanner; cannot be moved until completion or refund 601 602 ### F-D41: Off-Ramp Processing 603 - **Description:** Governor processes redemption request 604 - **KYC/AML:** Handled off-chain by Governor via their KYC system 605 - **FX Rate:** 1000-minute TWAP from F-D17 (tamper-resistant) 606 - **SLA:** Maximum T+3 business days (Governor may commit to faster; published on Scanner) 607 - **Fiat Settlement:** Off-chain via Governor's banking infrastructure 608 609 ### F-D42: Off-Ramp Completion 610 - **Description:** Finalize redemption after fiat settlement 611 - **ALPHA Disposition:** Governor choice: 612 - Keep: ALPHA transferred to Governor's address 613 - Burn: ALPHA destroyed; Outstanding Balance reduced 614 - **Confirmation:** On-chain record of completion 615 616 ### F-D43: Off-Ramp Rejection 617 - **Description:** Governor declines redemption request (rare) 618 - **Permitted Reasons:** 619 - Malformed transaction 620 - ID status changed between pre-check and on-chain submission 621 - **Note:** AML concerns are handled off-chain by Governor during fiat settlement; not an on-chain rejection reason 622 - **Prohibited:** Governors CANNOT refuse valid requests while they have Outstanding Mint Balance (treaty obligation) 623 - **Effect:** Escrowed ALPHA returned to user 624 625 ### F-D44: KYC Registration 626 - **Description:** User registers with Governor for off-ramp access 627 - **Process:** 628 - User completes Governor's KYC process (off-chain) 629 - Governor issues unique ID code linking on-chain address to off-chain identity 630 - ID code contains banking information for fiat transfer 631 - Governor adds ID code to GID's valid ID list 632 - **ID List Management:** 633 - Valid ID codes maintained as queryable list in GID 634 - Governors can manage via API from off-chain systems 635 - Addition/removal at Governor's discretion 636 - **Requirement:** Must register before first off-ramp with each Governor 637 - **Multi-Governor:** Users may register with multiple Governors 638 639 ### F-D44a: Pre-Submission ID Verification 640 - **Description:** Verify ID code before submitting redemption to chain 641 - **Process:** 642 - Client queries GID to verify ID code is on valid list 643 - Only valid ID codes proceed to on-chain submission 644 - **Result:** Redemption transactions submitted to chain should never be rejected 645 - **Note:** Off-chain fiat settlement is Governor's responsibility; once fiat commitment is met, funds are responsibility of destination jurisdiction 646 647 ### F-D45: Governor Off-Ramp Obligations 648 - **Description:** Treaty-mandated Governor responsibilities for off-ramp 649 - **Mandatory Obligation:** As long as Governor has Outstanding Mint Balance, they MUST honor off-ramp requests to their native fiat currency 650 - **No Amount Limits:** No restrictions on off-ramp amounts or frequency 651 - **Optional Cap:** GID MAY set a cap exceeding mint limit (Governor discretion) 652 - **Jurisdiction:** Governors may serve users from any jurisdiction (discretionary) 653 - **Competition:** Multiple Governors enables user choice based on SLA, jurisdiction, service quality 654 655 ### F-D46: Off-Ramp Dispute Resolution 656 - **Description:** Handle disputes when off-ramp fails 657 - **Amicable Resolution:** Governor refunds escrowed ALPHA; no penalty 658 - **Formal Dispute:** Off-chain arbitration per Treaty agreement 659 - **Enforcement:** Treaty specifies international arbitration mechanism; enforceable against sovereign entities 660 661 --- 662 663 # 4. CROSS-CHAIN FUNCTIONS 664 665 ## 4.1 Attestation Functions 666 667 ### F-X01: State Root Broadcasting 668 - **Description:** ALPHA chain publishes state root to DELTA chain 669 - **Frequency:** Every finalized block (~10-15 seconds) 670 - **Content:** Block height, state root hash, timestamp, validator signatures 671 672 ### F-X02: State Root Verification 673 - **Description:** DELTA chain verifies ALPHA attestation 674 - **Validation:** Signature threshold met (≥67% of active validators) 675 - **Effect:** Enables DELTA operations dependent on ALPHA state 676 677 ### F-X03: Cross-Chain Message Delivery 678 - **Description:** Route messages between chain runtimes 679 - **Latency:** ~15 seconds within finality window 680 - **Ordering:** Strict ordering guaranteed within epoch 681 682 ### F-X04: Hard Dependency Enforcement 683 - **Description:** DELTA halts if ALPHA attestation unavailable 684 - **Trigger:** No valid ALPHA attestation for >3 ALPHA blocks (30s at launch; 45s post-stability) 685 - **Effect:** DELTA trading paused; consensus continues 686 - **Resume:** Automatic when attestation restored 687 688 --- 689 690 ## 4.2 Locked Pool & State Conversion Functions 691 692 ### F-X10: ALPHA Lock (Deposit) 693 - **Description:** Lock private AX into shared pool, receive synthetic AX (sAX) 694 - **Direction:** ALPHA Chain → DELTA Chain 695 - **Mechanism:** 696 1. Private ALPHA record nullified 697 2. ALPHA added to Locked AX Pool 698 3. Attestation sent to DELTA 699 4. Synthetic ALPHA credited to user's DELTA balance 700 - **Privacy:** Private record destroyed; synthetic balance is public 701 702 ### F-X11: ALPHA Unlock (Withdrawal) 703 - **Description:** Burn synthetic AX (sAX), unlock from shared pool to private record 704 - **Direction:** DELTA Chain → ALPHA Chain 705 - **Mechanism:** 706 1. Synthetic ALPHA debited from user's DELTA balance 707 2. Attestation sent to ALPHA chain 708 3. ALPHA unlocked from Locked AX Pool 709 4. New private AX record created at user's address 710 - **Privacy:** Public synthetic balance destroyed; private record created 711 712 ### F-X12: Fee & Revenue Unlock 713 - **Description:** Unlock ALPHA from pool for fee/dividend distribution 714 - **Trigger:** Dividend claim or validator reward withdrawal 715 - **Process:** Synthetic ALPHA in revenue pools → unlock from Locked Pool → private AX record 716 - **Integrity:** Total unlocks never exceed total locks 717 718 --- 719 720 # 5. GOVERNANCE FUNCTIONS 721 722 ## 5.1 AX Chain Governance (Central Banks) 723 724 ### F-G01: Standard Proposal Submission 725 - **Description:** Submit governance proposal for vote 726 - **Actors:** Any registered Governor 727 - **Voting Period:** 7 days 728 - **Threshold:** ≥67% of all registered Governors must approve 729 730 ### F-G02: Emergency Proposal Submission 731 - **Description:** Submit urgent proposal with shortened timeline 732 - **Actors:** Any registered Governor 733 - **Voting Period:** 48 hours 734 - **Threshold:** ≥67% of all registered Governors 735 736 ### F-G03: Governor Vote Casting 737 - **Description:** Record vote on active proposal 738 - **Options:** Yes, No, Abstain 739 - **Privacy:** Individual votes private (cryptographic commitment); tally public 740 - **Non-Participation:** 741 - Automatically registers as NO vote 742 - No financial penalty (treaty-mandated governance) 743 - Publicly noted on ALPHA-Scanner (dashboard and Governor summary page) 744 - **Authority:** ALPHA governance is treaty-mandated; participation is a sovereign obligation 745 746 ### F-G04: New Governor Admission 747 - **Description:** Approve new Central Bank to join network 748 - **Prerequisites:** Treaty ratification, infrastructure audit, validator operational 749 - **Threshold:** ≥67% approval 750 - **Effect:** GID deployed; Mint Limit assigned 751 752 ### F-G05: Software Upgrade Approval 753 - **Description:** Authorize network software upgrade 754 - **Threshold:** ≥90% of all Governors 755 - **Voting Period:** 7 days (offchain ratification occurs first) 756 - **Compatibility Window:** 3 epochs for validator upgrade 757 758 --- 759 760 ## 5.2 DELTA Chain Governance (Token Holders) 761 762 ### F-G10: DELTA Proposal Submission 763 - **Description:** Submit governance proposal 764 - **Eligibility:** ≥100,000 DX holding OR Central Bank Governor 765 - **Limit:** 1 proposal per 30 days per proposer; max 20 active network-wide 766 767 ### F-G11: DELTA Vote Casting 768 - **Description:** Record vote on DELTA proposal 769 - **Eligibility:** ≥10,000 DX STAKED (registered as governance-eligible per F-G17) 770 - **Quorum:** 100% of governance-eligible holders counted 771 - **Threshold:** ≥67% for standard; ≥80% for major changes 772 - **Delegation:** Not permitted (each holder must vote directly) 773 - **Mandatory Participation:** Governance-eligible holders MUST vote or face slashing (see F-G18) 774 - **Privacy:** Individual eligibility is private; only aggregate counts are public 775 776 ### F-G12: Non-Participation Penalty 777 - **Description:** DX stake penalty for governance non-participation 778 - **Applicability:** Only applies to governance-eligible holders (≥10,000 DX staked) 779 - **Standard Proposal:** 1% of DX stake after **3 consecutive** missed votes 780 - **Emergency Stop/Resume:** 10% of DX stake after **2 consecutive** missed votes 781 - **Grace Period:** Missing 1-2 standard votes or 1 emergency vote incurs no penalty 782 - **Destination:** Slashed DX → Reward Pool 783 - **Tracking:** Via bad voter list (see F-G18) 784 785 ### F-G13: Trading Pair Addition 786 - **Description:** Add new trading pair to DELTA exchange 787 - **Threshold:** ≥67% qualified holder approval 788 - **Requirements:** Oracle feed available; liquidity thresholds met 789 790 ### F-G13a: Launch Trading Pairs 791 - **Description:** Trading pairs available at network launch 792 - **Spot Market:** DX/AX only 793 - **Perpetuals - Crypto:** AX/BTC, AX/ETH, AX/USDT, AX/USDC, AX/SOL 794 - **Perpetuals - Fiat:** ALPHA paired with top 20 Chainlink fiat/USD feeds plus USD (21 fiat pairs total) 795 - **Governance:** Additional pairs added via F-G13 process 796 797 ### F-G14: Trading Pair Removal 798 - **Description:** Remove trading pair from DELTA exchange 799 - **Threshold:** ≥67% qualified holder approval 800 - **Process:** Open positions closed at mark price; orders cancelled 801 802 ### F-G15: Fee Adjustment 803 - **Description:** Modify trading fees or parameters 804 - **Threshold:** ≥67% qualified holder approval 805 - **Scope:** Trading fees, leverage limits, margin requirements 806 807 --- 808 809 ## 5.2a DX Staking & Governance Eligibility 810 811 DX staking is the foundation for both dividend eligibility and governance participation. Staking is **default ON** (opt-out model), and governance eligibility is **privately tracked** by the system. 812 813 ### F-G16: DX Staking Model 814 - **Description:** Stake DX to become eligible for dividends and governance 815 - **Default State:** Staking is ON for all wallets (opt-out model) 816 - **Epoch Transition Priority:** All wallet actions processed in strict order: 817 1. **Slashing** (always first) - governance non-participation penalties applied 818 2. **Dividends** - calculated on current staked balances (before staking/unstaking changes) 819 3. **Staking** - pending stake requests take effect 820 4. **Unstaking** (last) - pending unstake requests take effect 821 - **Rationale:** 822 - Slashing first ensures penalties are applied before any escape 823 - Dividends second ensures unstakers receive their last epoch's rewards 824 - Dividends second ensures new stakers don't receive unearned rewards 825 - Unstaking last ensures the full epoch was staked before release 826 - **Staking Behavior:** 827 - When `staking_enabled = true`: All DX in wallet is staked 828 - Incoming DX automatically inherits wallet's staking state 829 - Staked DX cannot be transferred (must unstake first) 830 - Staked DX earns pro-rata dividends per epoch 831 - **Unstaking:** 832 - User requests unstake (sets `staking_enabled = false`) 833 - Unstaking takes effect at next epoch transition (daily) 834 - User receives dividends for the epoch in which they unstake 835 - After epoch transition, DX is transferable 836 - No dividends accrue while unstaked 837 - **Re-staking:** 838 - User sets `staking_enabled = true` 839 - All DX in wallet becomes staked at next epoch transition 840 - Dividends begin accruing from that epoch 841 - **Transfer Requirement:** DX must be unstaked before transfer 842 - **Received DX Behavior:** 843 - If recipient wallet has `staking_enabled = true`: Received DX auto-stakes 844 - If recipient wallet has `staking_enabled = false`: Received DX stays unstaked 845 846 ### F-G17: Governance Eligibility Registration (Private) 847 - **Description:** Automatic private registration for governance eligibility based on staked DX balance 848 - **Privacy Model:** Eligibility is tracked internally by the Delta system, not publicly 849 - **Threshold:** 10,000 DX (governance-adjustable, can only be decreased) 850 - **Automatic Registration:** 851 1. **Initial Stake:** When user stakes DX, wallet privately checks balance vs threshold 852 - If staked balance ≥ threshold: Privately registers as governance-eligible 853 - Registration uses ZK proof (proves ≥ threshold without revealing amount) 854 2. **Balance Change:** After any DX movement (receive/spend), wallet re-evaluates 855 - Crossed UP (was < threshold, now ≥): Automatically registers 856 - Crossed DOWN (was ≥ threshold, now <): Automatically deregisters 857 3. **Threshold Change:** When governance threshold is modified via vote 858 - All staked wallets receive notification of new threshold 859 - Each wallet privately re-evaluates against new threshold 860 - Mass register/deregister as appropriate 861 - **Eligibility Registry:** 862 - Maintained by validators collectively (decentralized) 863 - Contains set of governance-eligible addresses (for voting enforcement) 864 - Public output: COUNT of eligible voters only (not individual addresses) 865 - Individual eligibility is private 866 - **Registration Proof (ZK):** 867 - Proves: "My staked balance ≥ governance_threshold" 868 - Reveals: Nothing about actual balance 869 - Verified by: All validators 870 - Stored: Only the fact of eligibility, not the proof details 871 - **Explorer Metrics (Public):** 872 - Total staked wallets (count) 873 - Governance-eligible voters (count) 874 - Current voting threshold (governance parameter) 875 - Per-proposal vote counts and non-voter counts 876 877 ### F-G18: Bad Voter Tracking & Slashing 878 - **Description:** Track and penalize governance-eligible voters who fail to vote 879 - **Applicability:** Only applies to registered governance-eligible wallets (≥ threshold staked) 880 - **Bad Voter List:** 881 - Per proposal: Non-voting eligible addresses added to bad voter list 882 - List is internal (validators track for slashing enforcement) 883 - Public output: Count of bad voters per proposal only 884 - **Slashing Rules:** 885 - Standard Proposal: 1% of DX stake after 3 consecutive missed votes 886 - Emergency Stop/Resume: 10% of DX stake after 2 consecutive missed votes 887 - Grace Period: Missing 1-2 standard votes or 1 emergency vote incurs no penalty 888 - **Slash Destination:** Slashed DX → Reward Pool 889 - **Slash Execution:** 890 - Slashing occurs at epoch transition following the triggering missed vote 891 - Slashed amount deducted from staked DX balance 892 - If slash causes balance to drop below governance threshold, wallet auto-deregisters 893 - **Explorer Visibility:** 894 - Total slashes per proposal (count) 895 - Reward Pool balance growth (shows slash accumulation) 896 - Individual slashes are not publicly attributed 897 898 ### F-G19: Governance Threshold Adjustment 899 - **Description:** Modify the DX threshold for governance eligibility 900 - **Current Value:** 10,000 DX 901 - **Constraint:** Can only be DECREASED (never increased) 902 - **Threshold for Change:** ≥67% qualified holder approval 903 - **Effect:** Upon approval, all staked wallets automatically re-evaluate eligibility 904 - **Rationale:** Lowering allows broader participation; raising would disenfranchise existing voters 905 906 --- 907 908 ## 5.3 Emergency Functions 909 910 ### F-G20: DELTA Emergency Stop 911 - **Description:** Halt all DELTA trading operations 912 - **Trigger Requirements:** BOTH conditions must be met: 913 - ≥51% of qualified DX holders 914 - ≥51% of Central Bank Governors 915 - **Effect:** Trading paused; consensus continues; treasury protected 916 917 ### F-G21: DELTA Emergency Resume 918 - **Description:** Restart DELTA operations after emergency stop 919 - **Threshold:** ≥67% of qualified DX holders 920 - **Deadline:** Must occur within 24 hours or extended stop 921 - **Penalty:** 10% of DX stake for non-participation 922 923 ### F-G22: Governor Minting Freeze 924 - **Description:** Suspend specific Governor's minting authority 925 - **Trigger:** ≥67% Governor approval 926 - **Effect:** Mint disabled; burn allowed; voting rights retained 927 928 --- 929 930 # 6. VALIDATOR & NETWORK FUNCTIONS 931 932 ## 6.1 Validator Staking Requirements 933 934 ### F-V00: Validator Staking Model 935 - **Description:** Validators must stake both ALPHA and DELTA to participate 936 - **ALPHA Stake:** 100,000 AX minimum 937 - **DELTA Stake:** 10,000 DX minimum 938 - **Governance:** Staking minimums can be raised via governance; lowering requires software upgrade 939 940 ### F-V00a: Earning-In Period (ALPHA) 941 - **Description:** At launch, no ALPHA exists; validators "earn-in" their stake from transaction fees 942 - **Source of Earnings:** Transaction fees paid by users (NOT minting, NOT coinbase, NOT staking rewards) 943 - **Mechanism:** 944 - Validator fee earnings accumulate toward 100,000 AX requirement 945 - During earning-in: Validator is fully active (block production, selection eligible) 946 - Earnings are locked until 100,000 AX threshold reached 947 - After threshold: Earnings are freely spendable 948 - **Governor Exception:** Governors may "mint-in" their AX stake directly via F-A10 949 - **Note:** This does NOT create new tokens - fees come from existing circulating supply 950 951 ### F-V00b: DELTA Stake Requirement 952 - **Description:** 10,000 DX required for validator pool inclusion 953 - **Availability:** DELTA purchasable from Day 1 954 - **Timing:** Must be staked before validator registration accepted 955 956 ### F-V00c: Slashing Destinations 957 - **Description:** Slashed funds flow to appropriate pools by chain 958 - **ALPHA Chain Misbehavior:** Slashed ALPHA → Validator revenue pool 959 - **DELTA Chain Misbehavior:** Slashed DELTA → Reward Pool 960 961 ## 6.2 Validator Operations 962 963 ### F-V01: Validator Registration 964 - **Description:** Register new validator node 965 - **Requirements:** 966 - Hardware per specification (identical for all validators) 967 - 10,000 DX staked 968 - 99.9% uptime capability 969 - Valid CLP attestation 970 - **Warm-up:** 5 consecutive epochs before selection eligibility 971 972 ### F-V02: Active Set Selection 973 - **Description:** Select 40 validators for block production each epoch 974 - **Pool:** 300 maximum validators eligible for rewards 975 - **Composition:** Minimum 10 Governor validators (25% floor) 976 - **Algorithm:** Random selection with 2-epoch cooldown preference 977 978 ### F-V03: Block Production 979 - **Description:** Produce and propose new blocks 980 - **Actors:** Active validators (40 per epoch) 981 - **Block Time:** 10 seconds (launch); 15s ALPHA / 3s DELTA (post-stability) 982 - **Finality:** 30 seconds (3 blocks) 983 984 ### F-V04: Block Validation 985 - **Description:** Verify and attest to proposed blocks 986 - **Actors:** All active validators 987 - **Consensus:** AleoBFT with Narwhal-Bullshark DAG 988 989 ### F-V05: Validator Deregistration 990 - **Description:** Remove validator from network 991 - **Actors:** Validator operator (voluntary) or governance (forced) 992 - **Cooldown:** 7 epochs before staked funds can be withdrawn 993 - **Effect:** Exits reward pool after current epoch; staked funds returned after cooldown 994 995 ### F-V06: Hot Backup Validator 996 - **Description:** Maintain a standby node that automatically replaces primary on failure 997 - **Actors:** Any validator operator 998 - **Configuration:** 999 - Backup node (local or remote) monitors primary heartbeat 1000 - Backup remains dormant while primary is online 1001 - Single validator identity shared between primary and backup 1002 - **Failover:** 1003 - Primary goes offline → Backup detects within heartbeat window 1004 - Backup activates and assumes validator identity on network 1005 - Backup becomes new primary 1006 - **Recovery:** 1007 - Former primary comes back online → Detects new primary active 1008 - Former primary automatically assumes backup role 1009 - **Reward:** Only one node active at a time; no double rewards 1010 - **Purpose:** High availability without requiring manual intervention 1011 1012 --- 1013 1014 ## 6.3 Continuous Liveness Proof (CLP) Functions 1015 1016 ### F-V10: CLP Attestation Submission 1017 - **Description:** Submit proof of running verified software 1018 - **Frequency:** Every 24 hours minimum 1019 - **Tiers Available:** 1020 1. Intel SGX (hardware TEE) 1021 2. AMD SEV-SNP (hardware TEE) 1022 3. TPM 2.0 Measured Boot 1023 4. Software-only attestation 1024 - **Tier Choice:** Validator discretion; all tiers eligible for equal rewards 1025 1026 ### F-V11: CLP Verification 1027 - **Description:** On-chain verification of CLP proofs 1028 - **Per Tier:** Signature validation against trusted root (Intel/AMD/manufacturer) 1029 - **Result:** Valid/Invalid status published to ALPHA-Scanner 1030 1031 ### F-V12: CLP Failure Handling 1032 - **Description:** Response to invalid or missing CLP 1033 - **Grace Period:** 24 hours after attestation expiry 1034 - **Penalty:** 1035 - Immediate ejection from active set 1036 - 5-epoch disqualification 1037 - Reward suspension 1038 - 3% stake loss 1039 1040 ### F-V13: CLP Tier Display 1041 - **Description:** Public visibility of each validator's attestation method 1042 - **Location:** ALPHA-Scanner validator dashboard 1043 - **Purpose:** Market transparency; Governors/users can prefer certain tiers 1044 1045 --- 1046 1047 ## 6.4 Prover Functions 1048 1049 ### F-V20: Proof Generation 1050 - **Description:** Generate ZK-SNARK proofs for transactions 1051 - **Actors:** Prover nodes (GPU-equipped) 1052 - **Work Source:** Unified mempool serves both chains 1053 - **Revenue:** Fee-based; provers compete for highest-fee transactions 1054 1055 ### F-V21: Prover Pool Participation 1056 - **Description:** Join network prover pool 1057 - **Requirements:** GPU per specification (5 tiers from H100 to CPU-only) 1058 - **Selection:** Performance-based; 3,000 target pool size 1059 - **Dual-Chain Requirement:** Provers must serve both ALPHA and DELTA chains 1060 1061 ### F-V22: ALPHA Proof Quota 1062 - **Description:** Minimum ALPHA proof output required to remain in active pool 1063 - **Quota:** ≥20% of prover's completed proofs must be ALPHA chain proofs 1064 - **Measurement:** Calculated per epoch based on on-chain proof submissions 1065 - **Enforcement:** Provers below quota removed from active pool at epoch end 1066 - **Rationale:** Prevents ALPHA proof starvation if DELTA is more profitable 1067 1068 ### F-V23: Proof Submission 1069 - **Description:** Submit completed proof for block inclusion 1070 - **Validation:** Proof verified by validators before block finalization 1071 - **Reward:** 15% of DELTA chain revenue distributed to provers per epoch 1072 - **Distribution:** Pro-rata based on share of proofs generated that epoch 1073 1074 --- 1075 1076 ## 6.5 Client Nodes 1077 1078 ### F-V25: Client Node Infrastructure 1079 - **Description:** Non-validating nodes that provide network access 1080 - **Purpose:** 1081 - State synchronization and querying 1082 - Transaction relay to validators 1083 - API endpoints for wallets, explorers, and integrations 1084 - **Requirement:** Governors must operate at least one client node for ALPHA-Scanner and API access 1085 - **No Rewards:** Client nodes do not earn fees; operated for service needs 1086 - **Permissionless:** Anyone may run a client node 1087 1088 --- 1089 1090 ## 6.6 Epoch & Reward Functions 1091 1092 ### F-V30: Epoch Definition 1093 - **Description:** Time-based epoch for network coordination 1094 - **Duration:** 24 hours (8,640 blocks at 10s; adjusts with block time changes) 1095 - **Synchronization:** Both chains maintain synchronized epochs regardless of block time 1096 1097 ### F-V31: Validator Set Rotation 1098 - **Description:** Periodic rotation of active validator set 1099 - **Frequency:** Every 7 epochs (weekly) 1100 - **Activities:** Active set selection, performance metric reset 1101 1102 ### F-V32: Reward Distribution 1103 - **Description:** Distribute accumulated fees to validators 1104 - **Frequency:** Per epoch (daily) 1105 - **Split:** 50% to active pool (40 validators), 50% to standby pool (260 validators) 1106 - **Per-Validator:** Active = 1.25% of total; Standby = 0.192% of total 1107 1108 ### F-V33: Slashing Execution 1109 - **Description:** Apply penalties for misbehavior 1110 - **Penalties:** 1111 - Equivocation: 5% stake loss 1112 - Downtime >24h: 2% per day cumulative 1113 - CLP failure: 3% stake loss + 5 epoch disqualification 1114 - Invalid blocks: 1-5% progressive 1115 - **Destination:** Slashed funds → validator reward pool 1116 1117 --- 1118 1119 # 7. ECONOMIC FUNCTIONS 1120 1121 ## 7.0 Economic Model Overview 1122 1123 The ALPHA/DELTA network uses a **fee-based economic model** with NO inflationary mechanisms: 1124 1125 | Principle | Implementation | 1126 |-----------|----------------| 1127 | **No Gas** | Neither chain uses Ethereum-style gas metering | 1128 | **No Coinbase** | No new tokens minted as block rewards | 1129 | **No Staking Rewards** | Validators earn fees, not newly minted tokens | 1130 | **AX Supply** | Controlled exclusively by Governor mint/burn (F-A10/F-A11) | 1131 | **DX Supply** | Fixed at 1,000,000,000 at genesis, immutable | 1132 | **Validator Compensation** | 100% from transaction fees | 1133 | **Prover Compensation** | 100% from transaction fees | 1134 1135 ## 7.1 Fee Collection 1136 1137 ### F-E01: Transaction Fee Collection 1138 - **Description:** Collect fees from ALPHA transfers 1139 - **Formula:** min(max(Amount × 0.00001, 1), 1000) ALPHA 1140 - **Distribution:** 100% to validators and provers (no inflation, no treasury mint) 1141 - **Note:** Fees are the ONLY source of validator/prover compensation 1142 1143 ### F-E02: Trading Fee Collection 1144 - **Description:** Collect fees from DELTA spot trades 1145 - **Rate:** 0.1% of trade value 1146 - **Distribution:** Validators 20%, Operations 80% 1147 1148 ### F-E03: Swap Fee Collection 1149 - **Description:** Collect fees from ASG atomic swaps 1150 - **Rate:** 0.2% of swap value (min 10, max 10,000 AX) 1151 - **Distribution:** ASG Operator 50%, Operating Revenue 50% 1152 1153 ### F-E04: Perpetual Trading Fee Collection 1154 - **Description:** Collect fees from futures trades 1155 - **Distribution:** Per revenue allocation phases (see F-E10) 1156 1157 --- 1158 1159 ## 7.2 Revenue Allocation 1160 1161 ### F-E10: Revenue Split Model 1162 - **Description:** Distribution of DELTA exchange revenue (trading fees, swap fees, etc.) 1163 - **Base Split:** 1164 - Validators: 15% 1165 - Provers: 15% 1166 - Insurance/Treasury Top-Up: Up to 40% (until targets met) 1167 - Token Holders: Remainder (30-70% depending on top-up needs) 1168 - **Governance:** Base percentages (validators, provers, token holders) are governance-adjustable 1169 - **Top-Up Mechanism:** Insurance and Treasury automatically funded until targets reached; mechanism not directly adjustable but target sizes are governance-configurable 1170 1171 ### F-E11: Insurance Fund Top-Up 1172 - **Description:** Automatic funding of insurance fund from revenue 1173 - **Target:** 3% of open interest 1174 - **Priority:** Takes from top-up allocation before Treasury 1175 - **When Full:** Top-up allocation flows to Treasury or Token Holders 1176 - **Bootstrap:** Until sufficient open interest exists, Treasury provides liquidation cover 1177 - **Early Phase:** Tighter liquidation rules enforced until Treasury and Insurance Fund are adequately capitalized 1178 1179 ### F-E12: Treasury Top-Up 1180 - **Description:** Automatic funding of treasury from revenue 1181 - **Target:** 1B AX 1182 - **Priority:** Takes from top-up allocation after Insurance is satisfied 1183 - **When Full:** Top-up allocation flows to Token Holders 1184 1185 ### F-E13: Steady State Distribution 1186 - **Description:** Revenue distribution when Insurance and Treasury targets met 1187 - **Split:** Validators 15%, Provers 15%, Token Holders 70% 1188 - **Maintenance:** Insurance and Treasury topped up as needed if they fall below targets 1189 1190 --- 1191 1192 ## 7.3 DELTA Token Functions 1193 1194 ### DX Token Supply Model 1195 - **Total Supply:** Exactly 1,000,000,000 DX (one billion) 1196 - **Created At:** Genesis block only 1197 - **Minting:** NOT POSSIBLE - no mechanism exists to create new DX 1198 - **Burning:** NOT POSSIBLE - DX supply is permanently fixed 1199 - **Decimals:** 0 (whole tokens only, no fractional DX) 1200 - **Modification:** Changing the supply requires a software upgrade (hard fork) 1201 1202 ### F-E20: Daily Reward Distribution 1203 - **Description:** Distribute DX from Reward Pool to active participants 1204 - **Source:** Pre-allocated DX in Reward Pool (NOT newly minted) 1205 - **Rate:** 0.01% of pool balance per day 1206 - **Eligible Recipients:** Validators, provers, active traders (≥1 DX equivalent in daily fees) 1207 - **Note:** This redistributes existing DX, it does NOT create new tokens 1208 1209 ### F-E21: Founder Token Unlock 1210 - **Description:** Unlock founder tokens based on milestones 1211 - **First Unlock (20%):** At 21 Governors onboarded 1212 - **Full Unlock (80%):** At 50 Governors onboarded 1213 - **Sale Restriction:** Treasury/Reward Pool buyback only; never public sale 1214 1215 ### F-E22: Investor Token Unlock 1216 - **Description:** Unlock investor tokens based on milestones/time 1217 - **First Unlock (20%):** At 21 Governors; Treasury sale only 1218 - **Full Unlock:** Greater of 3 years OR 50 Governors; free trading 1219 1220 ### F-E23: Network Pool Distribution 1221 - **Description:** Allocate DELTA to new Governors and validators 1222 - **Governor Allocation:** 1,000,000 DX per new Governor 1223 - **Validator Allocation:** Up to 100,000 DX per new validator 1224 - **Control:** Governance-controlled until 100 validators 1225 1226 --- 1227 1228 ## 7.4 DELTA Token Privacy Model 1229 1230 DELTA token holdings are the sole private feature on the otherwise transparent DELTA chain. All DELTA token activities are ZK-shielded. 1231 1232 ### F-E30: DELTA Token Ownership (Private) 1233 - **Description:** Hold DX tokens with privacy 1234 - **Privacy:** Token balance hidden; ownership not publicly linkable 1235 - **Mechanism:** ZK-shielded records (similar to ALPHA privacy model) 1236 1237 ### F-E31: DELTA Token Transfer (Private) 1238 - **Description:** Transfer DX tokens between holders 1239 - **Prerequisite:** Sender must have `staking_enabled = false` (must unstake before transfer) 1240 - **Privacy:** Sender, receiver, and amount all ZK-shielded 1241 - **Public Data:** Only proof verification status visible 1242 - **Recipient Behavior:** Received DX inherits recipient wallet's staking state (see F-G16) 1243 1244 ### F-E32: DELTA Token Sale (Private) 1245 - **Description:** Sell DX tokens on secondary market 1246 - **Privacy:** Seller identity, buyer identity, and amount ZK-shielded 1247 - **Settlement:** Atomic swap between DX tokens and synthetic AX (sAX) 1248 1249 ### F-E33: ALPHA Address Registration (Private) 1250 - **Description:** Register ALPHA address for dividend receipt 1251 - **Prerequisite:** DX must be staked (`staking_enabled = true`) to register and receive dividends 1252 - **Privacy:** Registration is ZK-private; address not publicly linked to DX holding 1253 - **Update:** Holder can update registered address anytime while staked 1254 - **Requirement:** Must register AND be staked to receive dividends 1255 - **Unstaking Effect:** Unstaking deregisters the ALPHA address link; re-staking requires re-registration 1256 1257 --- 1258 1259 ## 7.5 Dividend Distribution Functions 1260 1261 Dividends are calculated per epoch but only distributed when claimed. Claims are ZK-private. 1262 1263 ### F-E40: Dividend Calculation 1264 - **Description:** Calculate per-holder dividend entitlement each epoch 1265 - **Eligibility:** Only staked DX (`staking_enabled = true`) earns dividends 1266 - **Frequency:** Daily (per epoch) 1267 - **Calculation:** Pro-rata share based on STAKED DX holdings at epoch snapshot 1268 - **Source:** Operating Revenue pool (synthetic AX (sAX)) after insurance/treasury allocations 1269 - **Storage:** Entitlements recorded privately (ZK-protected) 1270 - **Non-Staked DX:** Unstaked DX does not earn dividends and is excluded from calculation 1271 1272 ### F-E41: Dividend Accumulation 1273 - **Description:** Unclaimed dividends accumulate until claimed or forfeited due to inactivity 1274 - **Forfeiture:** Unclaimed dividends are forfeited after 180 epochs (~6 months) of no claims 1275 - **Visibility:** Holder can view their accumulated unclaimed dividends (private to them) 1276 1277 ### F-E41a: Inactivity Deregistration 1278 - **Description:** Deregister inactive DX holders from dividend accrual after 6 months 1279 - **Inactivity Definition:** No dividend claim for 180 consecutive epochs 1280 - **Note:** Any login triggers auto-claim (per F-D24), so inactivity means no platform login for 6 months 1281 - **Effect on Deregistration:** 1282 - ALPHA address link is deregistered (stops dividend accrual) 1283 - DX address remains active (can still send/receive DX) 1284 - Unclaimed sAX dividends are forfeited to Dividend Pool 1285 - Forfeited sAX is redistributed to active DX holders in next epoch 1286 - **Re-registration:** User can re-register a new ALPHA address at any time 1287 - DX holdings are retained (were never seized) 1288 - Previous unclaimed dividends are NOT restored 1289 - Begins accruing new dividends immediately after re-registration 1290 - **No Warning:** Due to platform anonymity, no email/notification is possible 1291 - Logging in to see notifications would trigger auto-claim, resetting the timer 1292 - **Privacy:** DX holdings remain ZK-shielded; only registration status changes 1293 1294 ### F-E42: Dividend Claim (ZK-Private) 1295 - **Description:** Claim accumulated dividends to registered ALPHA address 1296 - **Trigger:** Manual claim initiated at user login 1297 - **ZK Proof Contents:** 1298 1. Proof of DELTA token ownership (without revealing amount) 1299 2. Proof of dividend entitlement (without revealing share size) 1300 3. Proof of registered ALPHA address ownership (without revealing address) 1301 - **Process:** 1302 1. User logs in to ecosystem 1303 2. System presents unclaimed dividend balance 1304 3. User initiates claim 1305 4. ZK proof generated and verified 1306 5. Synthetic ALPHA debited from Operating Revenue pool 1307 6. Cross-chain attestation triggers unlock from Locked AX Pool 1308 7. Private ALPHA record created at registered ALPHA address 1309 - **Privacy:** Claim amount, DX holdings, and destination address all hidden 1310 1311 ### F-E43: Dividend Claim Verification 1312 - **Description:** On-chain verification of ZK dividend claim 1313 - **Validators:** Verify ZK proof without learning claim details 1314 - **Public Data:** Only aggregate "dividends claimed this epoch" visible 1315 - **Individual Data:** No individual claim amounts or recipients visible 1316 1317 --- 1318 1319 ## 7.6 Treasury Functions 1320 1321 The Treasury holds sAX (synthetic ALPHA) and uses it to buy back DX from genesis allocations. Buyback pricing uses TWAP to prevent manipulation. 1322 1323 ### F-T50: Treasury Buyback Pricing 1324 - **Description:** Calculate fair price for Treasury DX buyback 1325 - **Formula:** `Treasury Price = TWAP₃₀(Daily Dividend) × 365 × P/E Ratio` 1326 - **TWAP Period:** 30-epoch (30-day) time-weighted average of daily dividends 1327 - **P/E Ratio:** Genesis value = 5 (governance-adjustable, can only be INCREASED) 1328 - **Update Frequency:** Recalculated after each epoch 1329 - **Manipulation Resistance:** 30-day TWAP prevents short-term price manipulation 1330 - **Example:** If TWAP₃₀ = 100 sAX/epoch and P/E = 5, then Treasury Price = 100 × 365 × 5 = 182,500 sAX per DX 1331 1332 ### F-T51: Genesis Allocation Sale Restriction 1333 - **Description:** Founders and investors can only sell DX to Treasury 1334 - **Restriction:** Genesis allocations (founders, investors) CANNOT be sold on open market 1335 - **Sale Process:** 1336 1. Holder offers DX to Treasury 1337 2. Treasury calculates current Treasury Price per F-T50 1338 3. If offer price ≤ Treasury Price AND Treasury has budget, Treasury buys 1339 4. DX purchased goes to Reward Pool for redistribution 1340 - **Tracking:** GenesisAllocationTracker prevents circumvention 1341 - **Exception:** After full unlock milestones, some categories may trade freely (see F-E22) 1342 1343 ### F-T52: Treasury P/E Ratio Governance 1344 - **Description:** Governance can modify the P/E ratio used in buyback pricing 1345 - **Constraint:** P/E ratio can only be INCREASED (never decreased) 1346 - **Minimum:** Genesis value of 5 1347 - **Maximum:** 100 (safety cap) 1348 - **Threshold:** ≥67% qualified DX holder approval 1349 - **Effect:** Higher P/E = higher Treasury buyback price = better terms for sellers 1350 - **Rationale:** Prevents governance from exploiting sellers by reducing prices 1351 1352 --- 1353 1354 ## 7.7 DX Pool Functions 1355 1356 DX is distributed from two pools: the Network Pool (for bootstrapping) and the Reward Pool (for ongoing rewards). 1357 1358 ### F-P10: Genesis DX Allocation 1359 - **Description:** Fixed allocation of 1,000,000,000 DX at genesis 1360 - **Allocation Table:** 1361 | Category | Amount | Purpose | 1362 |----------|--------|---------| 1363 | Founders | 300,000,000 DX (30%) | Core team vesting | 1364 | Investors | 100,000,000 DX (10%) | Early backers vesting | 1365 | Network Pool | 250,000,000 DX (25%) | Validator/prover bootstrapping | 1366 | Reward Pool | 350,000,000 DX (35%) | Ongoing rewards | 1367 - **Immutability:** Allocation is fixed at genesis; cannot be changed without hard fork 1368 1369 ### F-P11: Network Pool Operations 1370 - **Description:** Bootstrap the network with DX for validators and provers 1371 - **Allocations:** 1372 | Role | DX Amount | Expected Count | Total | 1373 |------|-----------|----------------|-------| 1374 | Governor Validators | 1,000,000 DX | 150 | 150,000,000 DX | 1375 | Public Validators | 100,000 DX | 150 | 15,000,000 DX | 1376 | Early Provers (gift) | 10,000 DX | 3,000 | 30,000,000 DX | 1377 - **Expected Usage:** 195,000,000 DX 1378 - **Buffer:** 55,000,000 DX reserved for flexibility 1379 - **Prover Limit:** Maximum 3,000 prover gifts 1380 1381 ### F-P12: Network Pool Closure 1382 - **Description:** Close Network Pool when network reaches maturity 1383 - **Maturity Condition:** ALPHA chain has ≥150 registered Governors 1384 - **Trigger:** Governance vote after maturity reached 1385 - **Destination:** ALL remaining DX transfers to Reward Pool (no other destination allowed) 1386 - **Effect:** Network Pool permanently closed; cannot be reopened 1387 - **Governance Restriction:** Governance CANNOT redirect closure funds elsewhere 1388 1389 ### F-P13: Reward Pool Sources 1390 - **Description:** All sources of DX flowing into the Reward Pool 1391 - **Sources:** 1392 | Source | Description | 1393 |--------|-------------| 1394 | Genesis Allocation | 350,000,000 DX at genesis | 1395 | Treasury Buybacks | DX purchased from genesis allocations | 1396 | Slashing Penalties | DX slashed from governance non-voters and misbehaving validators | 1397 | Network Pool Closure | Remaining DX when Network Pool closes | 1398 - **Governance Restriction:** Governance CANNOT spend from Reward Pool; only distribution rate is controllable 1399 1400 ### F-P14: Reward Pool Distribution 1401 - **Description:** Distribute DX rewards to active participants 1402 - **Network Maturity Requirement:** NO DX distribution until ALPHA chain has ≥15 GID Governors 1403 - Before maturity: No DX distributions calculated or made 1404 - After maturity: Distribution begins per rate below 1405 - **Note:** This is separate from sAX dividends (F-E40) which pay from day 1 1406 - **Distribution Rate:** Set at genesis (e.g., 0.01% of pool per day); immutable without software upgrade 1407 - **Fractional Handling:** DX has 0 decimals; only whole tokens distributed 1408 - Per-participant amount rounded down to integer 1409 - Remainder rolls over to next epoch 1410 - If amount per participant < 1 DX, no distribution; entire amount rolls over 1411 - **Eligible Recipients:** Per daily reward criteria (see F-E20) 1412 - **Rollover:** Undistributed DX accumulates until distribution is feasible 1413 1414 --- 1415 1416 ## 7.8 DELTA Chain Privacy Summary 1417 1418 | Activity | Public | Private (ZK) | 1419 |----------|--------|--------------| 1420 | Spot/Futures Trading | ✓ | — | 1421 | Trading Balances (synthetic AX (sAX)) | ✓ | — | 1422 | Order Books | ✓ | — | 1423 | DELTA Token Ownership | — | ✓ | 1424 | DELTA Token Transfers | — | ✓ | 1425 | DELTA Token Sales | — | ✓ | 1426 | ALPHA Address Registration | — | ✓ | 1427 | Dividend Entitlements | — | ✓ | 1428 | Dividend Claims | — | ✓ | 1429 | Aggregate Dividends Distributed | ✓ | — | 1430 1431 --- 1432 1433 # 8. SECURITY FUNCTIONS 1434 1435 ## 8.1 Transaction Security 1436 1437 ### F-S01: Proof Verification 1438 - **Description:** Verify ZK-SNARK proofs before transaction inclusion 1439 - **Validators:** All active validators verify each proof 1440 - **Rejection:** Invalid proofs rejected; transaction dropped 1441 1442 ### F-S02: Double-Spend Prevention 1443 - **Description:** Prevent reuse of consumed balance records 1444 - **Mechanism:** Nullifier set tracks all spent records 1445 - **Enforcement:** Duplicate nullifiers rejected at consensus level 1446 1447 ### F-S03: Replay Attack Prevention 1448 - **Description:** Prevent transaction replay across contexts 1449 - **Mechanism:** Unique nonce per transaction; chain-specific identifiers 1450 - **Cross-Chain:** Messages include source/target chain IDs 1451 1452 ### F-S04: MEV Prevention 1453 - **Description:** Prevent miner extractable value exploitation 1454 - **Mechanism:** Encrypted mempool with commit-reveal 1455 - **Effect:** Transaction ordering cannot be manipulated for profit 1456 1457 --- 1458 1459 ## 8.2 Network Security 1460 1461 ### F-S10: DDoS Protection 1462 - **Description:** Protect network from denial-of-service attacks 1463 - **Mechanisms:** Rate limiting, connection caps, proof-of-work for connections 1464 - **Validators:** 10 Gbps dedicated connection handles traffic 1465 1466 ### F-S11: Sybil Protection 1467 - **Description:** Prevent single entity from controlling multiple validators 1468 - **Mechanisms:** 300 validator cap, random selection, CLP verification 1469 - **Governor Requirement:** Treaty obligation ensures diverse participation 1470 1471 ### F-S12: Eclipse Attack Prevention 1472 - **Description:** Prevent isolation of nodes from honest network 1473 - **Mechanisms:** Diverse peer connections, checkpoint validation, DNS seeds 1474 1475 --- 1476 1477 ## 8.3 Key Management Security 1478 1479 ### F-S20: Hardware Security Module Integration 1480 - **Description:** Support HSM for Governor key storage 1481 - **Recommendation:** All Governor signers use HSM 1482 - **Benefit:** Physical tamper resistance; key never exposed 1483 1484 ### F-S21: Key Rotation 1485 - **Description:** Periodic replacement of cryptographic keys 1486 - **Recommendation:** Annual rotation for all GID signers 1487 - **Process:** Add new signer, remove old signer, no exposure window 1488 1489 ### F-S22: Key Recovery 1490 - **Description:** Recover from key loss or compromise 1491 - **Mechanism:** GID multisig threshold; single key loss is survivable 1492 - **Full Compromise:** Emergency Freeze + GID Transfer process 1493 1494 --- 1495 1496 # 9. USER INTERFACE FUNCTIONS 1497 1498 ## 9.1 AX-Scanner Functions 1499 1500 ### F-U01: Block Explorer 1501 - **Description:** View block and transaction information 1502 - **Data Displayed:** 1503 - Block: Height, hash, timestamp, validator, transaction count 1504 - Private transactions: ID, proof status, fee (not sender/receiver/amount) 1505 - Public operations: Full transparency (Governor mint/burn, governance) 1506 1507 ### F-U02: Validator Dashboard 1508 - **Description:** Monitor validator status and performance 1509 - **Data Displayed:** Status, uptime, CLP tier, attestation expiry, epoch history 1510 - **Public Access:** All validator data publicly viewable 1511 1512 ### F-U03: Governor Dashboard 1513 - **Description:** Monitor Governor activity and balances 1514 - **Data Displayed:** Mint Limit, Outstanding Balance, mint/burn history, voting record 1515 - **Public Access:** Full Governor transparency for accountability 1516 1517 ### F-U04: Supply Dashboard 1518 - **Description:** View aggregate ALPHA supply statistics 1519 - **Data Displayed:** Total minted, total burned, circulating supply, per-Governor breakdown 1520 - **Real-Time:** Updated with each block 1521 1522 ### F-U05: Governance Dashboard 1523 - **Description:** View and track governance proposals 1524 - **Data Displayed:** Active proposals, voting status, historical results, participation rates 1525 - **Privacy:** Aggregate tallies public; individual votes private 1526 1527 --- 1528 1529 ## 9.2 DELTA Interface Functions 1530 1531 ### F-U10: Trading Interface 1532 - **Description:** Place and manage orders 1533 - **Features:** Order book display, position management, trade history 1534 - **Real-Time:** WebSocket updates for market data 1535 1536 ### F-U11: Portfolio Dashboard 1537 - **Description:** View holdings and performance 1538 - **Data Displayed:** Balances, open positions, P&L, trade history 1539 - **Privacy:** User's own data only (public on-chain, but aggregated view) 1540 1541 ### F-U12: Market Overview 1542 - **Description:** View all trading pairs and market data 1543 - **Data Displayed:** Price, 24h volume, 24h change, order book depth 1544 - **Public Access:** All market data publicly available 1545 1546 --- 1547 1548 ## 9.3 API Functions 1549 1550 ### F-U20: REST API Access 1551 - **Description:** Programmatic access to network data 1552 - **Endpoints:** Blocks, transactions, validators, governors, supply, governance 1553 - **Rate Limiting:** 1,000 requests/minute (default); 10,000 with API key 1554 1555 ### F-U21: WebSocket Subscriptions 1556 - **Description:** Real-time data streaming 1557 - **Channels:** Blocks, transactions, validators, governance, health 1558 - **Capacity:** 10,000 concurrent connections per instance 1559 1560 ### F-U22: gRPC High-Performance API 1561 - **Description:** Batch queries and streaming for professional use 1562 - **Performance:** <10ms response time for indexed queries 1563 - **Use Cases:** Validators, traders, integrators 1564 1565 --- 1566 1567 # 10. COMPLIANCE & AUDIT FUNCTIONS 1568 1569 ## 10.1 Audit Functions 1570 1571 ### F-C01: Supply Audit 1572 - **Description:** Verify total ALPHA supply matches Governor records 1573 - **Method:** Sum of Outstanding Balances = Circulating Supply 1574 - **Frequency:** Continuous (per-block verification) 1575 - **Discrepancy Handling:** Automatic alert; requires governance investigation 1576 1577 ### F-C02: Transaction Audit (with View Key) 1578 - **Description:** Third-party verification of specific transactions 1579 - **Actors:** Auditor with issued view key 1580 - **Scope:** Limited to transactions authorized by key holder 1581 - **Privacy:** Only exposed to authorized viewer 1582 1583 ### F-C03: Validator Performance Audit 1584 - **Description:** Review validator uptime and behavior 1585 - **Data:** Complete telemetry history per data retention policy 1586 - **Access:** Public via ALPHA-Scanner 1587 1588 ### F-C04: Governance Audit 1589 - **Description:** Review governance decision history 1590 - **Data:** All proposals, results, participation (individual votes private) 1591 - **Access:** Public via ALPHA-Scanner 1592 1593 --- 1594 1595 ## 10.2 Compliance Functions 1596 1597 ### F-C10: Off-Chain KYC Support 1598 - **Description:** Support Governor KYC processes without on-chain data 1599 - **Mechanism:** Governors maintain off-chain KYC databases 1600 - **ALPHA Chain:** No identity data stored; view keys enable selective disclosure 1601 1602 ### F-C11: Whitelist Mode (Optional) 1603 - **Description:** Optional address whitelisting per Governor 1604 - **Modes:** 1605 - Disabled: No restrictions (default) 1606 - Advisory: Warnings for non-whitelisted; transactions allowed 1607 - Mandatory: Only whitelisted addresses can redeem with that Governor 1608 - **Scope:** Per-Governor configuration 1609 1610 ### F-C12: Sanction Screening Integration 1611 - **Description:** Integration points for AML/sanctions APIs 1612 - **Usage:** ASG for incoming external assets 1613 - **Providers:** Chainalysis, Elliptic, TRM Labs, etc. 1614 1615 ### F-C13: Data Retention Compliance 1616 - **Description:** Maintain data per treaty requirements 1617 - **Minimum:** 52 epochs (1 year) 1618 - **Maximum:** 364 epochs (7 years) based on treaty terms 1619 - **Tiers:** Hot (12 epochs), Warm (40 epochs), Cold (312 epochs) 1620 1621 --- 1622 1623 ## 10.3 Reporting Functions 1624 1625 ### F-C20: Telemetry Reporting 1626 - **Description:** Validator performance metrics submission 1627 - **Frequency:** Every 5 minutes from each validator 1628 - **Data:** Uptime, block production, attestation status, resource usage 1629 1630 ### F-C21: Aggregate Reporting 1631 - **Description:** Network-wide statistics generation 1632 - **Reports:** Daily, weekly, monthly summaries 1633 - **Content:** Transaction volume, active users, validator performance, governance activity 1634 1635 ### F-C22: Incident Reporting 1636 - **Description:** Document and report network incidents 1637 - **Triggers:** Emergency Stop, rollback, slashing events, security incidents 1638 - **Content:** Timeline, impact, resolution, post-mortem 1639 1640 --- 1641 1642 ## 10.4 Operational Requirements 1643 1644 ### F-C30: Trusted Setup Ceremony 1645 - **Description:** Multi-party computation to generate ZK-SNARK circuit parameters 1646 - **Requirement:** Must be completed before mainnet launch 1647 - **Security:** Parameters are secure if at least one ceremony participant is honest 1648 - **Scope:** All privacy-preserving circuits (private transfers, DELTA token operations, dividend claims) 1649 - **Reference:** See Technical Implementation Guide for ceremony procedures 1650 1651 --- 1652 1653 # APPENDIX A: PARAMETER SUMMARY 1654 1655 ## Token Parameters 1656 1657 | Token | Decimals | Supply Model | Unit Conversion | 1658 |-------|----------|--------------|-----------------| 1659 | **AX** | 4 | Dynamic (Governor-controlled via F-A10/F-A11) | 1 AX = 10,000 microcredits | 1660 | **DX** | 0 | Fixed 1,000,000,000 at genesis | 1 DX = 1 unit (whole tokens only) | 1661 | **sAX** | 4 | Ephemeral (1:1 backed by locked AX) | Same as AX | 1662 1663 ### Supply Control 1664 1665 | Aspect | AX | DX | 1666 |--------|----|----| 1667 | Minting | Governor GID only (F-A10) | NOT POSSIBLE | 1668 | Burning | Governor GID only (F-A11) | NOT POSSIBLE | 1669 | Coinbase/Block Rewards | None | None | 1670 | Staking Rewards (new tokens) | None | None | 1671 | Supply Change | Requires Governor action | Requires hard fork | 1672 1673 ## Network Parameters 1674 1675 | Parameter | Value | 1676 |-----------|-------| 1677 | Active Validators | 40 per rotation | 1678 | Total Validator Pool | 300 maximum | 1679 | Epoch Duration | 24 hours (8,640 blocks at 10s; adjusts with block time) | 1680 | Validator Rotation | Every 7 epochs (weekly) | 1681 | Block Time (Launch) | 10 seconds | 1682 | Block Time (Phase II - ALPHA) | 15 seconds | 1683 | Block Time (Phase II - DELTA) | 3 seconds | 1684 | Finality | ~30 seconds (3 blocks) | 1685 | Cross-Chain Latency | ~15 seconds | 1686 1687 ## Fee Parameters 1688 1689 | Fee Type | Value | 1690 |----------|-------| 1691 | AX Transfer | 0.001% (min 1, max 1000 AX) | 1692 | DELTA Spot Trading (Maker) | 0.025% | 1693 | DELTA Spot Trading (Taker) | 0.075% | 1694 | Atomic Swap | 0.2% (min 10, max 10,000 AX) | 1695 | Perpetual Trading | TBD by governance | 1696 1697 *Note: Trading fees are governance-adjustable. Tiered volume rates may be introduced without software upgrade.* 1698 1699 ## Bridge Operation Parameters 1700 1701 | Parameter | Value | 1702 |-----------|-------| 1703 | Minimum Deposit | 100 AX | 1704 | Minimum Withdrawal | 100 AX | 1705 | Operation Timeout | 10 minutes | 1706 | Max Pending Operations | 1 per address | 1707 | Deposit/Withdrawal Fee | Standard transfer fee: min(max(Amount × 0.00001, 1), 1000) ALPHA | 1708 | Earnings Auto-Claim Threshold | 100 AX (only auto-claims on login if pending ≥ threshold) | 1709 1710 ## DX Staking Parameters 1711 1712 | Parameter | Value | 1713 |-----------|-------| 1714 | Default Staking State | ON (opt-out model) | 1715 | Unstaking Timing | Takes effect at next epoch transition | 1716 | Transfer Requirement | Must be unstaked | 1717 | Governance Eligibility Threshold | 10,000 DX staked | 1718 | Threshold Adjustability | Can only be DECREASED via governance | 1719 | Eligibility Tracking | Private (internal to Delta system) | 1720 | Public Metrics | Counts only (staked wallets, eligible voters) | 1721 1722 ## Governance Parameters 1723 1724 | Parameter | Value | 1725 |-----------|-------| 1726 | ALPHA Standard Threshold | ≥67% of all Governors | 1727 | ALPHA Upgrade Threshold | ≥90% of all Governors | 1728 | ALPHA Voting Period | 7 days (standard), 48 hours (emergency) | 1729 | DELTA Qualified Holder | ≥10,000 DX STAKED | 1730 | DELTA Proposal Eligibility | ≥100,000 DX | 1731 | DELTA Standard Threshold | ≥67% of qualified holders | 1732 | DELTA Major Change Threshold | ≥80% of qualified holders | 1733 | Emergency Stop Trigger | ≥51% DX holders AND ≥51% Governors | 1734 1735 ## Validator Parameters 1736 1737 | Parameter | Value | 1738 |-----------|-------| 1739 | Minimum ALPHA Stake | 100,000 AX | 1740 | Minimum DELTA Stake | 10,000 DX | 1741 | Deregistration Cooldown | 7 epochs | 1742 | Selection Cooldown Preference | 2 epochs | 1743 | Maximum Selection Cooldown | 35 epochs | 1744 | CLP Validity Period | 24 hours | 1745 | CLP Grace Period | 24 hours | 1746 | CLP Disqualification Period | 5 epochs | 1747 | Warm-up Period | 5 consecutive epochs | 1748 1749 ## Penalty Parameters 1750 1751 | Violation | Penalty | 1752 |-----------|---------| 1753 | Equivocation | 5% stake loss | 1754 | Downtime >24h | 2% per day cumulative | 1755 | CLP Failure | 3% stake + 5 epoch disqualification | 1756 | Invalid Block | 1-5% progressive | 1757 | Governance Non-Participation (Standard) | 1% after 3 consecutive misses | 1758 | Governance Non-Participation (Emergency) | 10% after 2 consecutive misses | 1759 1760 --- 1761 1762 # APPENDIX B: STAKEHOLDER FUNCTION MATRIX 1763 1764 | Function Category | Governor | Validator | Prover | Trader | DELTA Holder | 1765 |-------------------|----------|-----------|--------|--------|--------------| 1766 | Private Transfer | ✓ | — | — | ✓ | ✓ | 1767 | Mint/Burn | ✓ | — | — | — | — | 1768 | ALPHA Governance Vote | ✓ | — | — | — | — | 1769 | Block Production | ✓* | ✓ | — | — | — | 1770 | Proof Generation | — | — | ✓ | — | — | 1771 | Spot Trading | ✓ | ✓ | ✓ | ✓ | ✓ | 1772 | Futures Trading | ✓ | ✓ | ✓ | ✓ | ✓ | 1773 | DELTA Governance Vote | ✓ | ✓** | — | — | ✓ | 1774 | Dividend Claim (ZK) | — | ✓** | — | — | ✓ | 1775 | Off-Ramp Operation | ✓ | — | — | — | — | 1776 1777 *Governor must run at least 1 validator 1778 **If validator holds ≥10,000 DX 1779 1780 --- 1781 1782 **END OF FUNCTIONAL SPECIFICATION** 1783 1784 --- 1785 1786 **Specification Maintenance** 1787 1788 This specification must be kept synchronized with the code implementation in `alphavm/ledger/governor/`. See `SPEC_CODE_MAPPING.md` for: 1789 - Module-to-section mapping 1790 - Update checklist 1791 - Verification commands 1792 1793 **When to update this spec:** 1794 - Any change to `pub const` values in governor modules 1795 - New functionality added to governor modules 1796 - Changes to fee formulas, thresholds, or process flows 1797 1798 --- 1799 1800 **Document Control** 1801 1802 | Version | Date | Description | Author | 1803 |---------|------|-------------|--------| 1804 | 1.0 | December 22, 2025 | Initial complete functional specification | Specification Team | 1805 | 1.1 | December 23, 2025 | Added Locked AX Pool mechanics, DELTA token privacy model, ZK dividend claims | Specification Team | 1806 | 1.2 | December 23, 2025 | Gap analysis resolution: Policy Accounts (F-A30-38), Validator Staking model, Hot Backup (F-V06), Prover Quota (F-V22), Client Nodes (F-V25), Stop Orders (F-D02a/b), Time-in-Force (F-D04a), Order Limits (F-D07), Maker/Taker fees, Epoch=24h with 7-epoch rotation, Revenue split (15/15/40/remainder), Maintenance margin 75%, Insurance bootstrap via Treasury, Trusted Setup requirement. Delta analysis: Launch trading pairs (F-G13a), ALPHA-block-based attestation timeout, no vote delegation, prover pro-rata distribution | Specification Team | 1807 | 1.3 | December 23, 2025 | ALPHA-specific additions: Balance consolidation/split fees (F-A02/03), GID minting mechanics (F-A10), Validator-minting link (F-A20/F-A26), GID Unfreeze (F-A27), National split/merger (F-A28/29), Performance targets (50 TPS ALPHA, 1000+ ops/sec DELTA), Governor vote = auto-NO on non-participation. ALPHA price derivation (F-D17): gold-anchored harmonic mean with K constant, 1000-min TWAP for redemption. ASG rewrite (F-D30-37): operator registration, order publication, escrow-based swaps, 24h timeout. Off-ramp rewrite (F-D40-46): GID-maintained KYC ID list, pre-submission verification, Governor obligations, dispute resolution | Specification Team | 1808 | 1.4 | December 23, 2025 | Bridge parameters: (1) Deposit/withdrawal minimum set to 100 AX; (2) Operation timeout reduced to 10 minutes; (3) Only 1 pending operation per address; (4) Added F-D24 Earnings Transfer with auto-claim on login threshold—system only auto-claims sAX dividends if pending amount ≥ 100 AX to avoid disproportionate fees on small transfers. (5) Clarified governance non-participation penalties require consecutive misses (3 for standard, 2 for emergency) before slashing applies. (6) Added Validator Parameters table to Appendix A (staking minimums, cooldowns, CLP periods). (7) Added 7-epoch cooldown to F-V05 Validator Deregistration. | Specification Team | 1809 | 1.5 | December 27, 2025 | **Tokenomics Clarification**: (1) Added Section 1.2a Token Specifications with complete token details; (2) AX: 4 decimals (1 AX = 10,000 microcredits), Governor-only minting; (3) DX: 0 decimals (whole tokens), fixed 1B supply at genesis, no minting; (4) Clarified NO gas mechanism on either chain; (5) Clarified NO coinbase/block rewards, NO staking rewards that mint tokens; (6) Validators/provers compensated 100% from transaction fees; (7) Added Section 7.0 Economic Model Overview; (8) Updated F-A10 to explicitly state Governor minting is the ONLY minting mechanism; (9) Updated F-V00a to clarify earning-in is from fees not minting; (10) Added Token Parameters table to Appendix A; (11) Added F-E41a Inactivity Deregistration: 6-month inactivity forfeits unclaimed dividends to Dividend Pool, deregisters ALPHA address link, DX holdings retained; (12) DX address activation requirement for transfers (must register ALPHA address before receiving DX). | Specification Team | 1810 | 1.6 | December 27, 2025 | **DX Staking & Governance Eligibility**: (1) Added Section 5.2a DX Staking & Governance Eligibility; (2) F-G16 DX Staking Model: default ON (opt-out), must unstake to transfer, received DX inherits wallet state; (3) F-G17 Governance Eligibility Registration: private automatic registration when staked balance ≥10,000 DX, ZK proofs for eligibility, only counts are public; (4) F-G18 Bad Voter Tracking & Slashing: internal tracking, slashed DX → Reward Pool; (5) F-G19 Governance Threshold Adjustment: can only be decreased; (6) Updated F-E31 to require unstaking before transfer; (7) Updated F-E33 to require staking for dividend registration; (8) Updated F-E40 to calculate dividends only on staked DX; (9) Updated F-G11/F-G12 to reference new eligibility system; (10) Added DX Staking Parameters to Appendix A; (11) Explorer metrics: staked wallet count, governance-eligible count, vote counts, slash counts (all aggregate, no individual data). | Specification Team | 1811 | 1.7 | December 27, 2025 | **Treasury, Pools & Economics**: (1) Added Section 7.6 Treasury Functions with F-T50-52: Treasury buyback pricing using TWAP₃₀ × 365 × P/E ratio, genesis allocation sale restriction (founders/investors sell to Treasury only), P/E ratio governance (can only be increased, genesis=5, max=100); (2) Added Section 7.7 DX Pool Functions with F-P10-14: genesis allocation breakdown (30% founders, 10% investors, 25% Network Pool, 35% Reward Pool), Network Pool operations (1M DX governors, 100K DX validators, 10K DX provers), Network Pool closure (requires 150 governors, transfers only to Reward Pool), Reward Pool sources (genesis, Treasury buybacks, slashing, Network Pool closure), Reward Pool distribution with fractional rollover (DX has 0 decimals); (3) Added PERatioIncrease governance proposal type; (4) Renumbered 7.6→7.8 DELTA Chain Privacy Summary. | Specification Team |