ECO: A Global Decentralized Energy Web3 Ecosystem — White Paper

1.Project Background and Vision

1.1 Background

The world is at a critical juncture of energy transition and digital transformation. In pursuit of green, low-carbon development, countries are accelerating adjustments to their energy structures and promoting the intelligent upgrading of traditional energy infrastructure—such as fuel stations, charging stations, green power plants, and their associated commercial facilities.

However, traditional energy assets commonly suffer from fragmented data systems, inefficient management, limited access to financing, and opaque transaction processes. These challenges highlight an urgent need for advanced technological solutions to significantly enhance operational efficiency and transparency.

1.2 Vision

ECO’s mission is to build a global decentralized energy network by integrating traditional energy assets with blockchain technology, creating an energy economy that is efficient, transparent, and shared. The goal is to enable everyone to participate in—and benefit from—the value generated by energy assets.

We believe that blockchain technology has the potential to fundamentally improve the infrastructure underlying energy-related financial products and services, enhancing their accessibility and real-world viability. At the same time, we recognize that meaningful technological innovation must be grounded in the best practices of traditional finance, including strong investor protection, high standards of information transparency, regulatory compliance, robust product design, collaboration with top-tier service providers, and a commitment to high-quality customer service.

Our vision encompasses the following pillars:

• Global Energy Interconnection: Breaking down the barriers of traditional energy systems to build a decentralized, cross-border, globally connected energy finance ecosystem—enabling trustless transactions and the free circulation of energy assets worldwide.

• Digital Asset Management: Leveraging IoT and blockchain technologies to transform traditional energy facilities—such as fuel stations, charging stations, and green power plants—into real-world assets (RWAs). Through smart contracts, ECO enables automated revenue distribution, real-time settlement, and intelligent dispatch, significantly improving the operational efficiency of energy assets.

• Multi-Stakeholder, Win-Win Governance: Establishing a decentralized governance framework powered by the ECO token and NFT-based identity credentials. This system allows investors, operators, and end users to jointly participate in ecosystem decision-making, share in returns, and collectively manage risks—driving deeper integration between energy markets and financial markets.

• Intelligent Scheduling and Data Security: Combining AI computing power, IoT, and DePIN to achieve end-to-end data collection and intelligent dispatch. Zero-knowledge proof technologies are applied to protect user privacy while ensuring that data remains authentic, transparent, and tamper-resistant.

• Global Cross-Border Payments and Trading: Built on decentralized payment infrastructure, ECO reduces the costs of traditional cross-border transactions and enables seamless global connectivity between energy assets, capital flows, and digital assets—accelerating innovation in global energy finance.

2.Core Values and Objectives

2.1 Enabling the Securitization of Energy Assets

Transforming physical assets—such as fuel stations, charging stations, and green power plants—through IoT-enabled data integration and digital upgrades. These assets are converted into on-chain real-world asset (RWA) tokens, laying a solid foundation for future financing, revenue distribution, and long-term value appreciation.

2.2 Building a Decentralized Governance Framework

Leveraging the ECO token and Econn NFTs to establish a DAO-based governance platform. This structure ensures that all token holders can participate in ecosystem decision-making, share operational returns, and collectively foster a healthy, sustainable ecosystem.

2.3 Advancing Intelligent Energy Management

By combining AI algorithms, IoT data collection, and DePIN infrastructure, ECO optimizes energy dispatch, reduces waste, and enables efficient asset management and smart revenue allocation—significantly improving overall operational efficiency.

2.4 Creating a Global Dual-Circulation Trading System

Establishing a dual-circulation model that connects domestic cultural asset exchanges with international RWA trading platforms. This enables a complete closed loop—from cash or fiat entry, to digital asset circulation, to cross-border transactions—unlocking global liquidity and value growth for energy assets.

2.5 Ensuring System Security and Data Privacy

Adopting advanced security measures such as zero-knowledge proofs and multi-signature mechanisms to safeguard platforms and funds. These technologies ensure data authenticity during on-chain processes while protecting user privacy, forming a transparent and tamper-resistant decentralized energy ecosystem.

2.6 Smart Contract Auditing

The ECO ecosystem token smart contracts undergo rigorous audits conducted by CertiK, a globally leading blockchain security firm, to ensure the contracts’ security, reliability, and overall robustness.

3. Ecosystem Architecture and Design

The ECO ecosystem is built around four core modules that are closely interconnected, together forming a complete closed-loop digital energy economy.

3.1 ECO RWA — Digitization and Securitization of Physical Assets

• Asset Scope:

  The ecosystem covers fuel stations, charging stations, green energy power plants, and their surrounding commercial facilities—such as convenience stores, automotive service centers, and food & beverage outlets. These physical assets serve as the underlying foundation of the ECO ecosystem, providing stable and recurring cash flows.

• Digital Enablement and Data Collection:

  Each physical asset node is equipped with IoT devices, sensors, and smart metering systems to capture real-time data, including fuel volume, electricity output, equipment status, transaction records, and energy consumption. After standardized processing, all data is recorded on-chain, ensuring authenticity, transparency, and traceability. This creates a trusted data backbone for asset digitization and subsequent revenue distribution.

• Financing and Revenue Model:

  Through digital upgrades and financing of assets such as fuel stations, charging stations, and green power plants, ECO RWA enables investors to share in real operating income by holding and staking ECO tokens—rather than relying on traditional fixed-yield products. Investor returns are derived directly from real-world operational revenue and dynamically adjust based on actual performance.

• Revenue-Sharing Model:

  A fixed portion of operating income from energy stations (for example, 10%) is allocated to a shared distribution pool for ECO token stakers. As an illustration, if ten fuel stations generate a combined monthly revenue of 3 million USDC, 300,000 USDC would be transferred into the dividend pool and distributed proportionally among staked ECO holders. All unlocked ECO tokens are eligible for staking. Because the total dividend pool is relatively fixed, higher total staked amounts result in lower annualized yields per token, while lower staking participation leads to higher yields. In the early stages—when fewer participants stake—annualized returns could exceed 190%, gradually stabilizing as broader participation is achieved.

• Distribution Mechanism:

  AI-driven systems monitor the daily distributable pool (i.e., the energy station revenue available for allocation) in real time, while smart contracts automate settlement. The system takes daily snapshots of staking positions, and the corresponding rewards are distributed the following day in stablecoins such as USDC. Users must stake for at least 24 hours to qualify for daily rewards, and staked ECO tokens can be redeemed at any time, ensuring liquidity. The total revenue pool is allocated according to a 70% : 20% : 10% structure:

  • 70% distributed to ECO stakers as current-period dividends
  • 20% used for secondary-market token buybacks and market value management

  • 10% allocated as incentives for ecosystem contributors

    Compared with traditional models that promise fixed annual yields or guaranteed buybacks, this dynamic, performance-based dividend structure is more compliant and ensures that returns are directly linked to real operational results.

• Intelligent Dispatch and Value Assessment:

  ECO introduces advanced AI-driven algorithms to manage intelligent dispatching and value assessment across global energy stations. By analyzing real-time data and market conditions, the AI system scores the performance of each fuel or charging station and optimizes resource allocation accordingly. This data-driven approach maximizes overall portfolio efficiency and revenue, while providing a scientific and fair basis for income distribution.

• Fund Security and Risk Management:

  Multiple safeguards—including liquidity locks, dual-signature mechanisms, regular audits, and zero-knowledge proof technologies—are employed to ensure the security and integrity of on-chain data and fund flows. All financial operations are protected by smart contracts and multi-signature controls, reducing risk while significantly enhancing transparency and trust.

3.2 ECO — Ecosystem Token and Community Governance

• Value Anchoring:

  The ECO token adopts a distinctive dual value-anchoring model. On one hand, its value is supported by the market value of the ECO RWA asset portfolio and international crude oil prices, providing real-world asset backing and intrinsic inflation-resistant value. On the other hand, ECO is integrated into the ecosystem’s X402 cross-border micropayment protocol, granting the token global payment and settlement functionality and significantly expanding its utility and circulation demand.

• ECO Ecosystem Use Cases:

  • NFT Subscription and Membership Access:

    Users can use ECO tokens to subscribe to ecosystem NFTs (Energy Cat Econn), unlocking tiered membership privileges. NFT holders enjoy exclusive benefits such as consumption discounts, ecosystem revenue sharing, priority access to node rewards, and governance voting rights.

  • ECO Cross-Border Payments:

    ECO serves as a decentralized payment instrument for global energy consumption scenarios—such as fuel stations, charging stations, and e-commerce platforms—enabling fast, low-cost cross-border transactions. Smart-contract-based settlement reduces high fees and delays commonly associated with traditional payment systems.

  • Fuel Station Payment Settlement:

    At partner fuel stations, users can pay directly with ECO tokens, reducing intermediary fees and improving transaction efficiency. For fuel stations, accepting ECO payments lowers acquiring costs, enhances cash-flow liquidity, and unlocks additional ecosystem incentive rewards.

  • New Energy Station Ecosystem Commerce:

    Econn NFT members enjoy exclusive discounts when spending at ECO-partnered new energy stations—such as charging or energy storage facilities—and their surrounding commercial districts. For merchants, ECO payments enable instant settlement and simplified reconciliation processes.

  • E-Commerce and Retail Payments:

    Through partnerships with major e-commerce platforms and offline retailers, ECO tokens can be used for both online and in-store purchases, with holders receiving exclusive discounts—broadening the token’s real-world circulation and adoption.

  • Participation in Energy Storage Revenue Sharing:

    Renewable energy storage facilities within the ECO ecosystem—such as photovoltaic systems and battery-swap stations—generate storage-related revenue. Users can stake ECO tokens to participate in these shared returns, with profits distributed proportionally based on token holdings and staking duration, enabling decentralized management and distribution of energy-derived income.

3.3 Econn — NFT-Based Identity and Membership System

• Unique Identity Authentication:

  Within the ECO ecosystem, each user is issued a decentralized identity (DID) credential in the form of an NFT (Econn – Energy Cat). This NFT binds the user to their platform account, membership tier, and associated rights, ensuring a one-person–one-identity model. Such uniqueness and verifiability streamline benefit distribution and support fair, transparent community governance.

• Merchant System (Pass Card Holders):

  ECO issues dedicated Merchant Pass Cards to commercial partners, encouraging deep participation from real-world businesses.

• Eligibility:

  Merchants can apply for an ECO Merchant Pass Card, typically by holding a specified amount of ECO tokens or through approved partnership channels.

• Merchant Benefits:

  • Fee Reductions: Customers paying with ECO at participating merchants can enjoy reduced transaction fees, lowering payment costs and attracting higher foot traffic.
  • Ecosystem Exposure: ECO merchants are promoted across ecosystem applications, gaining additional visibility and traffic from the community.
  • Payment Priority Access: Merchants receive priority integration with the ECO payment infrastructure and can further connect to other decentralized payment solutions, improving settlement efficiency.
  • Co-Branded NFT Rights: Selected merchants may collaborate on limited-edition Econn NFTs, sharing ecosystem IP benefits. These co-branded NFTs combine artistic collectible value with commercial utility, supporting marketing campaigns and potential IP-related revenue.

• NFT Issuance and Membership Utility:

  The ECO ecosystem will release its first generation of Econn NFTs as on-chain membership credentials, forming an integrated online–offline membership system with multiple benefits:

  • Offline Discounts: NFT holders receive exclusive discounts at partner fuel stations, convenience stores, fast-food outlets, automotive service centers, and other participating merchants, strengthening user engagement and loyalty.
  • Revenue Sharing: Econn NFTs are linked to ECO RWA income and ECO token dividends, allowing holders to receive additional rewards from energy asset revenues and ecosystem incentives.
  • Digital Collectibility and Social Identity: As digital assets with artistic and collectible value, Energy Cat NFTs also serve as unique social identifiers within online communities—usable as avatars, event passes, or access tokens for exhibitions and themed merchandise—enhancing a sense of belonging.
  • Privacy-Preserving Identity Verification: By integrating zero-knowledge proof technology, ECO enables decentralized identity verification that protects user privacy and prevents data tampering. For compliance requirements such as KYC/AML, users can cryptographically prove eligibility without disclosing sensitive personal information, striking a balance between regulatory compliance and data privacy.

4. Smart Contracts

ECO smart contracts form the core infrastructure of the ecosystem, ensuring that all processes operate in an automated, transparent, and trustless manner. They cover the on-chain recording of asset data, token issuance and circulation, NFT minting, transaction data logging, revenue distribution, and node incentive mechanisms.

4.1 ECO Token Issuance, Distribution, and Lock-Up Rules

• Token Issuance:

  

  The total supply of ECO tokens is capped at 200,000,000. Tokens will not be released into circulation all at once; instead, they will be unlocked and distributed gradually in line with market strategy, supporting long-term ecosystem stability and sustainable value growth. The initial allocation is as follows:

  • Foundation: 25%
  • Team: 17.5%
  • Ecosystem Partners: 25.5%
  • Community Incentives: 17%
  • Advisory Team: 5%
  • Marketing: 5%
  • Institutional Investors: 5%

• Automated Dividend Mechanism:

  The smart contracts incorporate an automated revenue distribution function that calculates operating income generated by ECO RWA assets on a predefined schedule (e.g., daily). After operational costs are deducted, approximately 10% of net revenue is transferred to an on-chain dividend pool and distributed proportionally based on the amount of ECO tokens staked by users. Only ECO holders who participate in staking are eligible to receive these dividends. Smart contracts ensure that the entire distribution process is transparent, auditable, and executed with precision.

4.2 Econn NFT and Identity Authentication

• NFT Minting and Issuance:

  Unique Econn NFTs (Energy Cat) are minted via smart contracts, recording user identity, membership tier, and their binding relationship with ECO tokens and RWA-based revenue. The total supply and tier structure of NFTs will be dynamically adjusted according to ecosystem development strategies, ensuring both scarcity and a balanced distribution of rights.

• Rights Redemption and Management:

  NFT holders can automatically access and redeem corresponding online and offline benefits—such as fuel discounts, loyalty point redemptions, and revenue sharing—through smart contracts. All entitlement rules are recorded on-chain with full transparency and are protected from tampering by contract logic, ensuring fairness, reliability, and trust in the fulfillment of member benefits.

• Decentralized Identity Authentication:

  By integrating zero-knowledge proofs with decentralized identity (DID) protocols, the ecosystem enables secure on-chain identity verification while safeguarding user privacy. This allows user eligibility—such as successful completion of KYC checks—to be verified without revealing sensitive personal information, ensuring compliance with regulatory requirements while maintaining strong privacy protections.

5. Economic Model and Revenue Calculation

The ECO economic model creates a multi-layered, closed-loop revenue system that organically integrates cash flows from traditional energy assets, income from AI computing power leasing, DePIN node incentives, and ecosystem token dividends. Together, these elements form a full-chain value transfer framework that connects the real economy, digital finance, and data intelligence into a unified and mutually reinforcing system.

5.1 Energy Business DeFi Revenue Model (RWA Assets)

• Charging and Energy Storage Revenue:

  In electricity markets with pronounced peak–off-peak price spreads, energy storage systems can generate income through a “charge low, discharge high” arbitrage strategy. Batteries are charged during low-price off-peak periods and discharged during high-price peak periods, with the price differential constituting profit. Revenue calculations take into account off-peak and peak electricity prices, the amount of energy charged and discharged per cycle, charging and discharging efficiency, as well as battery depreciation and cycle-related losses. These factors together determine the effective sellable energy per cycle and the resulting net profit.

• Fuel Station Transaction Revenue:

  Each refueling transaction generates operating income, with transaction data uploaded to the blockchain via oracles for transparent and verifiable recording. A portion of this revenue (for example, 10%) is automatically allocated to an on-chain dividend pool and distributed to ecosystem participants according to predefined rules through smart contracts. The amount distributable on any given day depends on the fuel stations’ total transaction volume for that day and the preset distribution ratio, allowing investors to directly share in a portion of real-world daily operating cash flow.

• Carbon Neutrality Revenue:

  IoT devices deployed at physical facilities collect real-time data on carbon emissions and energy-saving activities. After identity verification and preprocessing, this data is recorded on-chain on the ECO RWA mainnet. Based on verified emissions-reduction data, smart contracts automatically issue corresponding carbon-reduction incentive tokens. These tokens can be used across multiple scenarios, including offsetting energy consumption costs (such as charging fees or membership fees), redeeming Econn NFT ecosystem benefits (such as green membership status or reward point packages), participating in governance voting for green investment projects, or being traded on the ECO-Carbon marketplace in exchange for ECO tokens. This mechanism creates a closed-loop green economy that incentivizes emissions reduction, rewards users with tokens, and channels those rewards back into ecosystem consumption and investment—delivering measurable environmental and financial value.

In addition, the introduction of DeFi financial tools further strengthens the revenue models described above:

• DeFi Application Scenarios:

  As crypto payment cards and similar tools become more widely adopted, payment processes in energy-related businesses become faster and more efficient, reducing capital turnover costs and further improving the profitability of real-world transactions. These innovative payment methods also introduce more diversified financial channels into traditional energy businesses, enhancing operational flexibility.

• Revenue-Sharing Stablecoins:

  The integration of stablecoins designed around revenue-sharing mechanisms helps mitigate price volatility of the ECO ecosystem token while providing a solid value anchor for energy asset dividends. Investors can share in real-world operating income while receiving payouts in stablecoins, reducing the impact of crypto market fluctuations on overall returns.

• DEX Growth:

  As trading volumes on decentralized exchanges (DEXs) and the adoption of aggregators continue to rise, the on-chain circulation of fuel station transaction data and energy storage revenue records becomes increasingly seamless. This allows investors’ ecosystem-based income rights to be traded more easily on a global scale, delivering greater liquidity, transparency, and market efficiency.

5.2 AI Computing Power and DePIN Revenue Model

• AI Computing Power Leasing Revenue:

  When charging stations, energy storage systems, or new energy vehicles are operating at low load or are idle, their onboard GPU or NPU computing resources can be leased out to execute AI workloads, generating additional income. Revenue from AI computing power leasing depends on factors such as the scale of available compute, utilization rates, prevailing market prices for compute, lease duration, as well as electricity costs and hardware depreciation. Through smart contracts, idle computing resources can be securely registered, matched with demand, and settled automatically—enabling efficient utilization and maximization of computing asset returns.

• DePIN Node Incentive Revenue:

  Nodes within the ECO decentralized physical infrastructure network (DePIN) earn incentives based on their contribution to the network. Contributions are evaluated across four dimensions: data volume submitted, data quality, timeliness (upload latency), and node uptime. Smart contracts periodically calculate a composite contribution score for each node and, in conjunction with the size of the current incentive pool, determine the rewards allocated to each node. Nodes with higher contribution scores receive greater token incentives, encouraging operators to continuously provide high-quality data and services.

• Enhanced DEX Liquidity:

  As decentralized trading markets continue to expand, tokens earned from AI computing power leasing and DePIN node incentives can achieve higher liquidity through DEXs. Contributors are able to trade and realize the value of their tokens more efficiently, while improved liquidity also enhances overall market transparency and the attractiveness of the ecosystem.

5.3 Integrated Revenue and Dividend Distribution Mechanism

• Total Revenue:

  The ECO ecosystem’s aggregate revenue is generated from multiple sources, including real-world energy business income (such as fuel station operating revenue and energy storage arbitrage gains), AI computing power leasing income, and DePIN node incentive rewards. From this total, operating expenses and node incentive costs are deducted. Over a defined accounting period—such as monthly or quarterly—all revenue streams are aggregated and net of costs to determine the ecosystem’s total net income for that period.

• Revenue Allocation:

  To ensure long-term sustainability, ECO adopts a balanced revenue distribution strategy. Approximately 10% of revenue generated from physical energy station operations is allocated to a dividend pool, which is then distributed according to a 70% : 20% : 10% structure:

    - 70% distributed as dividends to ECO token stakers
    - 20% allocated to token buybacks and market value management
    - 10% used to reward ecosystem co-builders and contributors
  

  In parallel, a portion of revenue derived from AI computing power leasing and DePIN node operations is distributed directly to contributors who provide computing resources and data, ensuring reliable infrastructure performance and high data quality. The remaining revenue is reserved for reinvestment—supporting physical asset expansion and upgrades, system feature development, and marketing and operational growth—thereby continuously scaling the ecosystem and enhancing overall project value.

• DeFi-Driven Enhancements:

  Emerging DeFi tools and trends further reinforce this dividend mechanism:

    - **Consumer-oriented DeFi applications and revenue-sharing stablecoins** introduce innovative instruments for income distribution, enabling smart-contract-based payouts that are more efficient and stable, while helping hedge against market volatility and protect investor returns.
    - **The growth of decentralized trading markets** provides stronger liquidity channels for tokens involved in dividends and incentives. Investors and contributors can more easily trade their earned tokens, improving overall liquidity, market transparency, and confidence in the ecosystem.
  

6. Technical Architecture

6.1 DePIN Architecture

The ECO DePIN (Decentralized Physical Infrastructure Network) architecture follows a design paradigm of “edge sensing → on-chain mapping → multi-chain coordination → final settlement on Ethereum mainnet.” Its objective is to enable efficient mapping and value transfer from the physical world to the blockchain world. Specifically:

At the edge layer, IoT devices act as data collectors. Each device embeds a local trusted agent (TrustAgent) module that preprocesses and cryptographically signs workload-related data, generating a Proof of Physical Work (PoPW).

Oracle nodes are responsible for verifying the authenticity of the PoPW. Once validated, the PoPW is submitted to ECO’s DePIN application chain (App Chain), where it triggers corresponding incentive logic and asset registration processes on-chain.

The states of multiple DePIN application chains are then aggregated using Layer 2 technologies such as rollups and collectively submitted to the Ethereum mainnet for final data anchoring, settlement, and ownership confirmation.

This architecture forms an end-to-end closed loop—from edge data capture to mainnet verification—enabling seamless integration between the physical world and the blockchain ecosystem.

6.2 AI Computing Power Enablement

ECO enhances data processing and network orchestration by integrating AI computing power, primarily in the following areas:

• Data Preprocessing:

  The ECO system leverages AI models deployed at the edge to preprocess raw data collected by IoT devices in real time. This includes noise reduction, missing-value imputation, and anomaly detection and removal. Cleaned data is then stored in a standardized format within the DePIN caching layer for subsequent use by core AI models and on-chain verification.

  In addition, the system dynamically adjusts data structures and feature dimensions based on real-time on-chain business needs. Different DePIN application scenarios—such as fuel transaction settlement, energy consumption analytics, or revenue distribution calculations—require different data features. This module automatically optimizes feature sets for the smart contracts about to be executed on-chain, selecting appropriate encoding methods and performing dimensionality reduction or expansion as needed while preserving data integrity. As a result, when smart contracts invoke external data, they receive task-optimized, high-precision inputs—significantly improving on-chain computational efficiency and scalability.

• Intelligent Task Scheduling Algorithms:

  The ECO system employs reinforcement learning (RL)–based intelligent scheduling algorithms. By continuously collecting multidimensional data—such as historical task execution records, device availability, network bandwidth, and compute load—the system builds predictive performance models. Through ongoing training and iteration, the RL agent learns near-optimal task allocation strategies to achieve the following objectives:

    - **Resource Balancing:** Distributing compute tasks efficiently across geographically distributed DePIN nodes to prevent overload on some nodes while others remain underutilized, maximizing overall resource utilization.
    - **Latency Minimization:** For latency-sensitive tasks—such as real-time energy monitoring or emergency fault diagnostics—the system prioritizes assignment to edge nodes with closer geographic proximity and better network conditions, reducing transmission delays and improving responsiveness to critical events.
    - **On-Chain Load Offloading:** During periods of high smart contract invocation, the scheduler offloads portions of precomputation, model inference, or verification tasks to edge nodes, alleviating computational pressure on the main chain and ensuring smooth transaction processing.
  

• Dynamic Compute Leasing and AI Task Crowdsourcing:

  ECO also supports flexible compute leasing and decentralized AI task crowdsourcing mechanisms:

    - In the **compute leasing model**, edge nodes with idle computing resources can register their capacity on the platform. When upper-layer applications submit compute demands, the system automatically matches suitable nodes to deliver the required compute power. Smart contracts transparently record leasing fees, usage duration, and settlement details.
    - The **AI task crowdsourcing mechanism** allows task publishers to submit specific AI inference or model training jobs to the platform. Nodes bid for tasks based on hardware configuration, network bandwidth, and historical reputation. The system selects the optimal node(s) to execute the task, with smart contracts handling task assignment, result verification, and reward settlement. This fully decentralized process eliminates the need for centralized intermediaries, maximizes edge-node participation, and provides AI compute consumers with a cost-effective, decentralized computing solution.
  

6.3 Cross-Chain Gateway

The cross-chain gateway module is a critical component for enabling the secure transfer of assets and data across multiple blockchains within the DePIN ecosystem. The ECO cross-chain gateway establishes a trusted workflow for data packaging, signing, and verification between the source chain and the destination chain, ensuring the integrity and auditability of all cross-chain operations. The process is as follows:

1. Message Packaging (Source Chain):

   The gateway smart contract on the source chain monitors relevant cross-chain events. When an on-chain transaction involves asset transfers, identity updates, or other data that must be transmitted across chains, the gateway contract extracts the transaction details—such as sender and recipient addresses, asset amounts, or data hashes—and packages them into a standardized cross-chain message format.

2. Message Signing and Relaying:

   The packaged message is hashed and signed by source-chain gateway nodes using a threshold-signature–based BLS algorithm, generating a data packet that includes the source chain’s digital signature. This signed packet is then transmitted to the target chain by multiple decentralized relayer nodes. During transmission, relayers are responsible only for forwarding messages; they neither decrypt nor modify the packet contents, ensuring reliability and immutability throughout the cross-chain transfer process.

3. Verification and Execution on the Target Chain:

   Once the target chain’s cross-chain gateway contract receives the relayed data packet, it first verifies the digital signature—using the source chain gateway’s public key or a pre-deployed verification contract—to confirm authenticity. After successful verification, the target chain executes the corresponding instructions contained in the message, including but not limited to:

    - Asset Minting:
        The bridge contract on the target chain mints an equivalent amount of tokens as specified in the message and assigns them to the designated target address, completing the cross-chain asset injection.
    - Asset Burning:
        To prevent double-spending, if the instruction requires the destruction of assets on the source chain, the gateway contract on the target chain burns the corresponding tokens held at the specified address and records the burn details, maintaining total supply consistency across chains.
    - Data Updates:
        When cross-chain events involve identity data, permission configurations, or governance decisions, the target-chain gateway invokes the relevant smart contracts to update on-chain state, ensuring consistency of cross-chain information across all networks.
   - Event Notifications:
        Upon completion of the cross-chain operation, the target-chain gateway emits events to notify upper-layer applications or clients of the outcome. Notifications are dispatched via an EventBus to subscribed parties, enabling subsequent business logic execution.
   

Through this mechanism, ECO enables secure and reliable cross-chain movement of assets and data in a multi-chain environment, providing a trusted infrastructure foundation for global energy asset trading and coordination across different blockchains.

7. Security and Compliance

7.1 Smart Contract Security

• Contract Audits:

  ECO has engaged well-established security firms to conduct comprehensive audits of all core smart contracts, including token issuance contracts, vesting and lock-up contracts, dividend distribution contracts, and NFT management contracts. In addition, formal verification tools such as Certora have been applied for rigorous logical validation.

  The audits focus on common and critical risk areas, including reentrancy and double-minting risks in token minting and burning, integer overflows and privilege-escalation issues in staking and dividend contracts, as well as flash-loan and replay attacks in NFT binding and trading processes. Through line-by-line review and extensive testing, the contracts are verified to remain logically consistent, secure, and controllable under a wide range of boundary conditions.

• Modular Architecture:

  The ECO smart contract system adopts a modular design, separating key functions—such as underlying asset mapping, token issuance and custody, revenue distribution and dividends, and NFT management with secondary market interactions—into independent modules that communicate through predefined interfaces. This approach reduces single points of failure: if one module encounters an issue, other modules can continue operating normally, significantly enhancing the overall robustness and resilience of the system.

• DAO Governance:

  High-privilege or high-risk operations—such as contract upgrades or critical parameter changes—are governed through DAO-managed multi-signature accounts. Any change to permissions must pass on-chain voting or multi-signature approval processes, ensuring transparency, traceability, and accountability in governance. This framework prevents unauthorized upgrades or parameter modifications and provides strong protection for investor interests.

7.2 Data Privacy Protection

The ECO ecosystem establishes an end-to-end privacy and security architecture across off-chain data collection, on-chain processing, identity verification, and smart contract interactions. This framework is designed to protect sensitive user data while meeting regulatory and compliance requirements:

• Encrypted Data Collection:

  At the edge data collection layer, each fuel station device, charging pile, renewable power generator, and energy storage unit is equipped with an elliptic curve cryptography (ECDSA) key pair. These keys are used to locally encrypt and digitally sign real-time operational data as well as user-submitted zero-knowledge proof (ZKP) data.

  Raw data is first encrypted on-device using the AES-GCM symmetric encryption algorithm, then signed with the device’s private key and securely stored locally. Only after passing verification and batch processing within the trusted edge execution environment is a cryptographic digest of the data submitted on-chain for notarization.

• Zero-Trust Data Pipeline:

  Encrypted data is transmitted to edge computing nodes equipped with Intel SGX technology. Within hardware-isolated trusted execution environments (TEEs), edge nodes decrypt, cleanse, and standardize the data before re-encrypting it. This zero-trust processing model prevents data leakage or tampering during transmission and computation, significantly enhancing overall data security.

• Zero-Knowledge Proof Technologies:

  For on-chain processes that require privacy protection—such as device operation validity verification, transaction authenticity checks, and user compliance validation—the ECO system employs zero-knowledge proof protocols like zk-SNARKs. Zero-knowledge proofs and corresponding verifier public keys are generated off-chain and submitted to on-chain verification contracts. Smart contracts verify the proofs without accessing any underlying sensitive data, confirming the authenticity and validity of the submitted information. This approach preserves privacy while fully satisfying on-chain requirements for data integrity and trust.

• Decentralized Identity Authentication:

  a. The ECO identity framework adopts W3C-compliant Decentralized Identifier (DID) standards and Verifiable Credential (VC) mechanisms. Each investor, device operator, and edge node is assigned a unique DID. Through zero-knowledge attestations, smart contracts can verify whether a user has passed KYC/AML or other compliance checks without revealing additional personal information—achieving a balance between privacy protection and regulatory identity requirements.

  b. For qualification reviews involving token holders, foundation members, or parties linked to insurance or reserve funds, ECO collaborates with independent third-party compliance institutions to conduct due diligence. Where appropriate, compliance results can be recorded on-chain as verifiable credentials, ensuring that compliance information is transparent, auditable, and traceable. This mechanism helps demonstrate the project’s regulatory compliance to both regulators and investors.

8. Global Expansion and Strategic Partnerships

• Experts and Key Opinion Leaders:

  ECO engages globally recognized crypto KOLs (key opinion leaders), energy industry researchers, and academic institutions to participate in project promotion and technical forums. Their involvement enhances the project’s visibility, credibility, and thought leadership, providing strong ecosystem endorsement.

• Media and Official Partnerships: Through in-depth coverage and promotion across leading international financial media, social platforms, outdoor digital displays, and specialized self-media channels, ECO achieves broad global brand exposure. In parallel, partnerships with industry associations and official organizations help secure policy support and positive public discourse.

• Academic and Research Collaboration: ECO collaborates with top universities worldwide to host blockchain and energy innovation seminars, co-establish research laboratories, and offer scholarships. By integrating industry, academia, and research, the project attracts top-tier talent, accelerates technological innovation, and expands its global impact.

9. Project Roadmap

9.1 Short-Term Plan (Q4 2025)

• Complete the ECO RWA digitization pilot by deploying IoT hardware across approximately 20 fuel stations. This will enable real-time, on-chain collection of operational data—such as sales volumes and revenues—laying a solid data foundation for the future tokenization of revenue rights.

• Officially launch the ECO ecosystem token, publishing detailed plans covering token issuance, vesting and lock-up schedules, dividend distribution, and buyback mechanisms, in preparation for market trading.

• Release the first generation of Econn NFTs (Energy Cat), establishing an integrated online–offline membership identity platform. Early participants will receive exclusive membership benefits, helping to seed and grow the ecosystem community.

• Deploy a DePIN network pilot by connecting selected fuel stations and related equipment to the ecosystem. This will enable end-to-end on-chain recording of transaction and operational data, validating the feasibility of bringing physical assets fully on-chain.

• Launch an initial version of the AI computing power scheduling system. Within pilot regions, conduct tests on energy storage charge–discharge optimization and edge compute leasing to validate peak–off-peak price arbitrage models and decentralized compute crowdsourcing mechanisms.

9.2 Mid-Term Plan (Q1 2026 – Q2 2026)）

• Expand the scope of ECO RWA digitization by onboarding additional physical asset nodes—including fuel stations, charging stations, green power plants, and new energy vehicles—thereby enlarging and diversifying the underlying asset pool.

• Optimize the distribution and release mechanisms of the ECO token, dynamically adjusting lock-up schedules, buyback programs, and burn rules to enhance market liquidity and user participation, ensuring the long-term health of the token economy.

• Deepen the application scenarios of Econn NFTs by enriching membership benefits—such as broader offline consumption discounts, loyalty point redemptions, and exclusive events—to grow the community user base and stimulate ecosystem vitality.

• Fully integrate the DePIN network by bringing all partner fuel stations and charging stations onto the system, enabling real-time, on-chain recording of both transaction and operational data. At the same time, refine node incentive mechanisms to ensure comprehensive data coverage and high data quality.

• Further enhance the AI-driven intelligent scheduling system to achieve network-wide, cross-region, and cross-device coordination. This will enable large-scale optimization of energy dispatch and computing power allocation, driving higher overall efficiency and returns.

9.3 Long-Term Plan (2026 and Beyond)

• Achieve global deployment by expanding the ECO Energy Web3 ecosystem across multiple countries and regions, connecting energy assets and users worldwide, and supporting the global transition to green energy and inclusive finance.

• Continuously optimize smart contracts, AI-driven scheduling, and the DePIN network architecture to further enhance operational efficiency, security, and resilience—laying a robust foundation for large-scale commercial adoption.

• Advance cross-chain interoperability by breaking down barriers between different blockchain platforms, asset classes, and business scenarios. This will enable a fully integrated, cross-platform, cross-asset, and cross-vertical ecosystem, significantly extending the reach and impact of the ECO ecosystem.

• Deepen collaboration with international regulators, academic institutions, and industry partners. By actively participating in the development of industry standards and regulatory frameworks, ECO aims to guide decentralized energy finance innovation toward a compliant, sustainable path—positioning itself as a key engine of the future green energy economy.

10. Conclusion and Future Outlook

The ECO project is committed to building a global, decentralized Energy Web3 ecosystem. By integrating the digitalization of traditional energy assets, asset securitization, token-based incentives, NFT-driven identity systems, DePIN networks, and AI-powered intelligent scheduling, ECO enables deep convergence between physical assets, digital finance, data intelligence, and network consensus.

The solutions outlined in this white paper are designed with careful consideration of critical factors such as data privacy, fund security, cross-chain interoperability, and regulatory compliance. This ensures that the system is transparent, resilient, and practical for real-world deployment. We believe that through continuous optimization and real-world implementation, the ECO project will play a pivotal role in accelerating the digital transformation of the global energy industry, reshaping cross-border payment infrastructure, and advancing the digital economy—emerging as a key technological engine and innovation benchmark for the future of green energy.