> 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/3.-vlx.md). # 3. VLX Protocol Overview The VLX protocol consists of five layers and is designed to support everything from collecting reduction data to verifying, rewarding and using reduction records. ### 3.1 Design Principles
**VLX's technical choices follow five principles.** * On-site measurement first: Metered values are the basic unit, and data that involves estimation is distinguished by source grade. * Immutable records: Records are never edited; a correction is added as a new record. * Single app entry point: AetherFlow is a non-custodial (MPC) embedded wallet. Wallet creation and signing are handled in the app, and users do not store a seed phrase themselves. * Fixed supply and usage-based burn: Supply is fixed, and 50% of the fees that accrue to the protocol in VLX are burned and removed from the supply available for circulation. * Protocol sponsorship rule: A protocol rule allocates part of the fees to environmental sponsorship, and the execution method and the breakdown are disclosed. ### 3.2 Five-Layer Architecture (Layered Stack) From bottom to top, the VLX protocol is made up of five layers. Table 1. VLX 5-layer stack | **Layer** | **Name** | **Role** | | --------- | -------------------- | ------------------------------------------------------------------ | | L5 | Carbon Points market | Exchange, use and permanent retirement of reduction records | | L4 | AetherFlow Wallet | User entry point, wallet, payments, asset management | | L3 | Software layer | Collection of everyday reduction data from the public | | L2 | Hardware layer | Collection of measured data from industrial and site-based sources | | L1 | Value X Chain | Ledger, consensus, smart contract execution | The system is designed to record L2 and L3 data on L1 and to issue Carbon Points according to the verification results. Market fees are subject to L1's burn and sponsorship distribution rules. L1 to L5 in Table 1 are this document's layer numbers and are a different concept from the Avalanche L1 (a chain classification) in Chapter 4. ### 3.3 Individual User Flow (B2C User Journey) An individual user goes through six steps. The first release (October 2026) prioritizes steps 1, 5 and 6. Steps 2 to 4 (earning and conversion) open in Phase 2. ![Figure 2. Individual user flow](https://4111024654-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fw7YoFCbsDz1NbkOTHoHH%2Fuploads%2FffTPKydAOVvKfpyHGcTF%2FChatGPT%20%EC%9D%B4%EB%AF%B8%EC%A7%80%202026%EB%85%84%209%EC%9B%94%2028%EC%9D%BC%20%EC%98%A4%ED%9B%84%2012_53_44-2.png?alt=media\&token=c25a8d6e-ced8-4919-b499-27bdaaf23047) * Sign-up: The user creates a wallet with email verification alone. * Participation: The user walks, takes public transit and returns PET bottles at collection points. * Earning: A methodology formula is applied to activities that pass verification, and Carbon Points accrue accordingly. * Conversion: Points are converted into VLX or used for partner benefits. * Spending: The user pays with the VLX Card (starting once a partner is selected and integrated). * Fee distribution: Of the fees that accrue to the protocol in VLX, 50% are burned and 20% are allocated to environmental sponsorship and ecosystem contribution. ### 3.4 Enterprise User Flow (B2B Enterprise Journey) ![Figure 3. Enterprise user flow](https://4111024654-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fw7YoFCbsDz1NbkOTHoHH%2Fuploads%2FlegKnnGD0ydNfmEhnUCr%2FChatGPT%20%EC%9D%B4%EB%AF%B8%EC%A7%80%202026%EB%85%84%209%EC%9B%94%2028%EC%9D%BC%20%EC%98%A4%ED%9B%84%2012_53_43-1.png?alt=media\&token=5ce23884-0d7f-4fa0-b9bf-c1a690f86e9c) The enterprise flow has six steps, from installation to evidence and top-up. It is planned to launch in Phase 2 (target: 2027), when measurement hardware is integrated. * Installation: Measurement devices are placed on key equipment and at metering points. * Collection: The devices meter usage, sign the readings with a secure chip and send them. * Recording: The signed data is committed to Value X Chain. * Management: The workspace shows the status of each piece of equipment and any signs of anomalies. * Evidence: Reports that include transaction hashes are generated. * Top-up: Any shortfall is filled with reduction records from the Carbon Points market. ### 3.5 Points to Note * Carbon Points are not nationally certified emission allowances. They do not claim the same legal effect as allowances allocated under an ETS. * They are not a means of fulfilling statutory reduction obligations. * The VLX token grants no rights to dividends, interest or equity. Its legal classification may differ by jurisdiction (see Section 14.2). * Linking with recognized registries has not been completed. VLX plans to operate its own self-verified units of reduction records first and then link them with institutional standards. ***