# Value Loop

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### Sources (Demand & Lockups)

* **PCC Consumption**\
  ESQ queries are paid in stablecoins; a fixed portion is automatically converted into $GEN and burned.
* **Node Staking**\
  Compute, audit, and anti-fraud nodes must stake $GEN to accept work.
* **Priority Access**\
  Staking $GEN grants priority queuing and expedited review during peak demand.
* **Governance Participation**\
  Submitting proposals and voting on key parameters requires locking $GEN.
* **Ecosystem Maintenance**\
  Maintainers of compliance templates and core connectors stake $GEN as a quality guarantee.

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### Sinks (Burns & Buybacks)

* **Burn-on-Usage**\
  $GEN acquired through PCC conversion is permanently burned.
* **Slashing**\
  Malicious or faulty nodes have a portion of their staked $GEN slashed; the remainder flows to the insurance pool.
* **Protocol Buybacks**\
  A portion of PSG network fees (denominated in stablecoins) is used to buy back $GEN.
* **Governance Lockups**\
  $GEN committed to governance enters time-based lockups, reducing circulating supply.