> For the complete documentation index, see [llms.txt](https://valuex.gitbook.io/valuex-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://valuex.gitbook.io/valuex-whitepaper/value-x-whitepaper/0.-executive-summary.md).
# 0. Executive Summary
VLX is carbon economy infrastructure that brings measurement, record-keeping, rewards and distribution together on a single chain. The VLX token is used to pay network fees and to reward activity.
### 0.1 Measuring Carbon Emissions and Regulatory Demand
A 600-meter-wide glacier on Langtang Lirung in Nepal collapsed on August 26, 2026. By August 31 a total of 10,451 people had been rescued. Earlier, a glacial lake in Tibet burst on July 8, 2025. The outburst caused heavy damage to roads and hydropower facilities in Nepal's border area.
Similar climate disasters are also occurring in South Korea. In August 2026 Geoje was hit by 124.5 mm of rain in a single hour, the kind of downpour expected once in 200 years. Satellites and observation networks measure the factors that make such disasters more likely, and quantifying carbon emissions is the basis for calculating carbon costs.
In particular, the Carbon Border Adjustment Mechanism (CBAM) of the European Union (EU) took full effect on January 1, 2026. As a result, importers that bring steel, aluminum, cement, fertilizers, electricity or hydrogen into the EU must run systems for recording and managing embedded emissions.
**However, under the amended regulation, small import volumes of less than 50 metric tons per importer per year (based on the combined net mass of steel, aluminum, fertilizers and cement, excluding electricity and hydrogen) are exempt from the obligation to purchase and surrender certificates.**
Also, **not every covered company starts paying the costs and surrendering certificates immediately in 2026.** Certificate sales actually begin on February 1, 2027. An importer's first annual declaration and certificate surrender for 2026 imports are due by September 30, 2027. There is therefore a grace period before certificates actually have to be surrendered.
Even so, exporters are already being asked to provide the accurate emissions data needed for declarations, starting with 2026 imports.
Because of supply chain disclosure and greenwashing rules, whether a company can substantiate its emissions affects real business transactions. Since carbon emissions are counted as corporate costs, a record-keeping system with auditable underlying data is needed.
### 0.2 What VLX Is Made Of
VLX uses hardware to meter energy use in factories and buildings, and software to collect data on users' reduction activities such as walking, taking public transit and returning PET bottles at collection points. The two layers are planned to be combined in Phase 2 (2027).
The system is designed to sign the collected data and then record its hash and a de-identified reference key on Value X Chain. After that, Carbon Points are issued according to the carbon reductions that pass verification, and contributors receive VLX tokens as rewards.
### 0.3 Chain and Token
Value X Chain is an independent, Avalanche-based EVM application chain that is already live.
VLX is the chain's native gas token and the instrument used for rewards. Total supply is fixed at 1 billion (1,000,000,000 VLX), and there is no additional issuance.
### 0.4 The AetherFlow Wallet App
AetherFlow Wallet ("AetherFlow") is designed so that a wallet can be created with email verification alone.
Swap and bridge functions are under development for use within the app. Payments with a physical payment card are planned to be offered after a partner is selected and integrated. The first release is targeted for October 2026.
### 0.5 Economic Rules
VLX sets two rules, burn and sponsorship, as the basis of its economic design.
The two rules apply to fees that accrue to the protocol in VLX, and they are being prepared with the goal of launching in Phase 1.
The first rule is the burn: 50% of the fees that accrue to the protocol (see Section 10.4) are sent to an address that has no private key and are permanently removed from the supply available for circulation.
The second rule is sponsorship: 20% of the same fees are allocated to sponsorship of environmental organizations and to ecosystem contribution rewards.
The remaining 30% funds operations, development and security. How the two rules are executed and how far they apply on-chain differ by transaction type. The finalized details and the launch timing are disclosed according to set criteria.
### 0.6 Phased Roadmap
**VLX expands in three phases.**
* **Phase 1 · Foundation** **(Now to October 2026): chain operation** and the first release of AetherFlow.
* **Phase 2 · Fusion** **(2027): measurement hardware** and everyday-reduction software combined with on-chain MRV.
* **Phase 3 · Market Expansion (Once Prerequisites Are Met): data reliability**, distribution scale and regulatory requirements must all be met, and the Carbon Points exchange opens when they are.
In this document, TGE means the date of the first exchange listing, and it is the reference date for all vesting and lock-up schedules. The TGE date is disclosed on official channels.
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