> ## Documentation Index
> Fetch the complete documentation index at: https://gencyai.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Value Loop

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The Gency AI network aligns demand, verification, and incentives through a closed-loop system built on verifiable execution and programmable settlement.

### **Sources (Demand & Lockups)**

– **Advertising Demand** Campaign execution generates verifiable usage and outcome receipts (VUR), which drive settlement and network activity.

– **Node Staking** Computation, verification, and auditing participants must stake \$GAI to access tasks and contribute to the network.

– **Governance Participation** \$GAI may be locked for proposal submission and voting, contributing to reduced circulating supply.

– **Ecosystem Participation** Developers and partners contributing connectors, compliance templates, and infrastructure may stake \$GAI as a signal of commitment and quality.

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### **Sinks (Burns, Penalties, Lockups)**

– **Slashing** Invalid or malicious behavior results in partial loss of staked \$GAI, with penalties distributed or burned according to protocol rules.

– **Governance Lockups** Tokens used in governance processes may be subject to time-based lockups.

– **Protocol-Level Adjustments** Certain network fees or penalties may be used for token burn or redistribution, subject to governance decisions.

### **Flow Integration**

Demand → ESQ execution → VUR generation → PSG settlement → incentive distribution → staking and governance

This structure ensures that value creation, verification, and distribution are directly linked to provable system activity.
