Specification

Source-of-truth design documents for the Encrypted Balances system. These describe the protocol as it exists today — the on-chain contracts, the ZK circuits, the cryptographic constructions, and the supporting infrastructure.

Foundation

Document	Description
Architecture	System overview, privacy layers, component summary
Cryptography Reference	Curves, hashes, proof system, encryption
Key Management	EPK identity, spending/signing/viewing keys, linked mode
Discrete-Log Solver	Recovering plaintexts from ElGamal ciphertexts

Protocol

Document	Description
Encrypted Balances	Public to encrypted, transfer, encrypted to public, autoEncrypt
Minting and Burning	Issuance entry points (public / encrypted mint and burn), roles, circuits
Freeze and Seize	AML enforcement: freeze registry, seizePublic / seizeEncrypted, role model
Sanctions Screening	Chainalysis-compatible oracle integration, public-layer and controller screening
Pause	Issuer-wide circuit breaker: global and per-ZKEMT flags, pauser role
Proof of Reserves	Encrypted total supply counter for MiCA reporting

Infrastructure

Document	Description
Relayer	Gas sponsorship via ERC-4337, partner authentication, SharedAccount
Faucet	Testnet ZKEMT faucet app and gas-sponsored mint route
Card Issuer	Payment-operator system: Card Issuer Service operation

Compliance

Document	Description
Threshold Compliance	On-chain components, threshold decryption protocol, revoking workflow