Token Recycle

(Execution Primitive)

1.1 Token Recycle (Execution Layer)

The Recycle Execution Layer converts surrendered ERC-20 tokens into accounting weight through deterministic smart contract logic.

It is composed of three distinct contracts:

1. RecycleAssetRegistry

2. SponsorshipLedger

3. RecyclingEngine

Each performs a specific role. No contract overlaps responsibilities.

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I. Registry Layer — Asset Definition

Contract: RecycleAssetRegistry

The Registry defines which ERC-20 tokens are recyclable.

The RecyclingEngine reads from:

registry()

An asset must be enabled in the registry for recycle execution to proceed.

If disabled, the engine reverts with:

ENGINE_ASSET_NOT_ENABLED

Registry Responsibilities

• Enable / disable tokens • Define unit conversion ratio • Enforce optional caps • Provide read-only metadata to engine

The registry does not hold tokens. It does not distribute value. It only defines eligibility and accounting units.

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II. Inventory Layer — SponsorshipLedger

Contract: SponsorshipLedger

The Ledger finalizes token surrender and converts it into accounting units.

Core function:

sponsor(beneficiary, token, tokenAmountUnits)

What Happens On-Chain

1. Tokens are transferred to SponsorshipLedger

2. Tokens are forwarded to blackHole()

3. Accounting units are credited to beneficiary

Event emitted:

Sponsored(
  sponsor,
  beneficiary,
  token,
  tokenAmountUnits,
  newAllowanceUnits
)

This is irreversible.

Tokens are not stored for speculation. They are removed from circulation via burn routing.

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Verifiable State

To confirm inventory:

recyclableBalance(beneficiary, token)

To confirm burn routing:

blackHole()

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Consumption Protection

The Ledger enforces:

• Cap limits • No self-sponsoring • Engine-only consumption

Errors include:

LEDGER_CAP_EXCEEDED
LEDGER_SELF_SPONSOR_FORBIDDEN
LEDGER_ONLY_ENGINE

Units cannot be consumed directly by users.

Only RecyclingEngine may call:

consume(beneficiary, token, units)

This preserves execution discipline.

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III. Execution Layer — RecyclingEngine

Contract: RecyclingEngine

The Engine converts accounting units into accounting weight via native-paid execution.

Core function:

recycle(address token) payable

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Execution Flow

When a user calls recycle(token):

1. User sends native value (msg.value)

2. Engine calculates units to consume:

quoteUnitsToConsume(token, nativeWei)

1. Engine calls Ledger:

consume(beneficiary, token, units)

1. Router splits native rails

2. Weight is minted

3. accNativePerWeight updated

4. Recycled event emitted

Event:

Recycled(
  beneficiary,
  token,
  nativePaidWei,
  unitsConsumed,
  recycleRailWei,
  weightMinted
)

This event fully describes execution outcome.

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IV. Weight Mechanics

Weight is a non-transferable accounting metric.

It is tracked through:

weightOf(address)
totalWeight()

Distribution accrues via:

accNativePerWeight()
rewardDebt(address)

Claimable amount:

claimable(address)

Claim execution:

claim()

Event:

Claimed(user, amountWei)

Weight does not represent:

• Ownership of tokens • Governance voting (unless defined in Fund layer) • Share of assets

It represents proportional participation in native distribution.

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V. Dynamic Weight Pricing

Weight minting depends on:

baseWeightPriceWei()
decayPerDayPPM()
linearGrowthSlopeWeiPerDay()
currentWeightPrice()

These parameters determine:

• Initial weight cost • Decay adjustment • Linear growth component

Parameter updates emit:

ParamsSet(...)

No silent modifications possible.

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VI. Execution Guarantees

Recycle execution will revert if:

• Asset disabled • Insufficient units • Router misconfigured • Native value zero • Division by zero

Errors include:

ENGINE_BAD_UNITS
ENGINE_NO_VALUE
ENGINE_ROUTER_MISMATCH
ENGINE_DIV_BY_ZERO

No partial execution occurs.

Either full state transition or revert.

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VII. Summary of Responsibilities

Contract	Responsibility	Holds Tokens	Holds Native
Registry	Asset definition	No	No
Ledger	Unit allocation + burn routing	No (burn only)	No
Engine	Unit consumption + weight minting	No	Yes (temporary for routing)

There is no pooled ERC-20 treasury.