# System Definition

### System Definition

Modulexo is an on-chain execution and governance infrastructure that standardizes irreversible ERC-20 token recycling, deterministic accounting weight generation, and native value routing into a governed treasury rail.

It is composed of deployed smart contracts that:

* Register recyclable assets
* Finalize token surrender via burn routing
* Allocate accounting units
* Convert units into normalized accounting weight through native-paid execution
* Distribute native value proportionally using deterministic ledger math
* Route defined fee rails into a DAO-governed Fund

Modulexo does not depend on off-chain discretion. All state transitions are enforced by contract logic and emitted through verifiable events.

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### Operating Principle

**If a claim cannot be verified on-chain, Modulexo does not make it.**

All system actions are traceable through:

* `Sponsored` / `SponsoredReceived` (inventory provision)
* `Recycled` (execution)
* `Claimed` (distribution)
* `AllowanceConsumed`
* `AllowanceForfeited`

Accounting state is derived exclusively from:

* `recyclableBalance()`
* `quoteUnitsToConsume()`
* `weightOf()`
* `totalWeight()`
* `accNativePerWeight`
* `claimable()`

No interface text overrides contract behavior.\
The UI reflects contract state; it does not redefine it.

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### Scope Limitation

Modulexo is infrastructure.

It does not:

* Guarantee returns
* Promise recovery
* Offer yield
* Provide investment advice
* Transfer token ownership upon participation
* Create entitlement beyond contract-defined accounting

Participation results in:

* Permanent token surrender (burn routing)
* Accounting unit allocation
* Weight-based proportional native distribution

All economic outcomes are strictly determined by contract parameters and usage activity.