# Token Utility

### 🛡️ 1. Network Security & Access (Security & Slashing)

**Node Staking**

* Any computation, verification, or anti-fraud node must stake $GEN to participate in the network.
* The staking amount is directly tied to node capacity, task eligibility, and reputation scoring.<br>

**Slashing & Penalties**

* Malicious behavior (e.g., falsified proofs, denial-of-service, protocol violations) will trigger slashing.
* A portion of the slashed $GEN will be permanently burned, creating both punitive and deflationary effects.

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### ⚡ 2. Privacy & Compute Pricing&#x20;

**PCC Consumption Mechanism**

* Advertisers consume PCC when initiating ESQ (Encrypted Sensitive Query) requests.
* A portion of PCC will be automatically converted into $GEN and burned in the background.<br>

**Resource Reservation & Priority**

* During network congestion, advertisers staking $GEN gain priority in strategy review, scheduling, and compute allocation.

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### ⚖️ 3. Protocol Governance&#x20;

**Core Parameter Governance**

* Minimum k-anonymity threshold
* Upper bound of privacy budget ε
* Network fee standards and economic parameters<br>

**Protocol Evolution Governance**

* Protocol upgrades and roadmap transitions
* Connector and compliance template whitelisting
* Deprecation timelines and migration policies

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### 💰 4. Value Capture & Return&#x20;

**Network Fee Buyback**

* Every proof-verified advertising settlement contributes a small network fee.
* These fees are periodically used to buy back and burn $GEN, forming structural deflation.<br>

**Sustained Work Incentives**

* High-performing connector developers and compliance template maintainers
* Receive continuous $GEN rewards aligned with long-term ecosystem contribution.<br>