ENRG Protocol Whitepaper

Abstract

ENRG is an open, blockchain-independent protocol for establishing cryptographic trust between physical devices and digital systems. The protocol defines a standard for Proof-of-Production — cryptographically signed data packets from IoT devices that are verified by an oracle network and recorded on-chain.

The first reference implementation tokenizes verified energy production as SRC (Source) tokens on Solana. Each SRC token represents exactly 1 MWh of verified energy production. The protocol leverages Ed25519 cryptographic signatures for device authentication, a policy engine for deterministic verification, and Solana's SPL Token standard for on-chain representation.

Problem Statement

The global renewable energy market suffers from three critical inefficiencies:

1. Opaque certification. Renewable Energy Certificates (RECs) are issued by centralized bodies with limited auditability, slow issuance cycles, and high administrative overhead.
2. Fragmented markets. Energy producers in different regions cannot access unified, liquid markets for their certificates. Small producers are effectively excluded.
3. Verification trust gap. Buyers of RECs must trust intermediaries rather than cryptographic proof. Double-counting and fraudulent certificates are persistent problems.

Solution: Proof-of-Production (PoP)

ENRG introduces Proof-of-Production: a cryptographic pipeline that connects physical energy devices to on-chain tokens. The pipeline consists of five stages:

SRC Token

Protocol Fee Distribution

15% of each mint is distributed as follows:

• 20% Buyback & Burn — creates constant deflationary pressure
• 40% Staking Rewards — distributed to SRC stakers proportionally
• 30% DAO Reserve — governed by token holder voting
• 10% Emergency Fund — protocol insurance

85% of each mint goes directly to the energy producer.

Source Multipliers

Protocol Design

The ENRG Protocol consists of two Solana programs that communicate via Cross-Program Invocation (CPI):

enrg-mvp — Core Protocol

The core program responsible for:

• Verifying oracle Ed25519 signatures via solana_instructions_sysvar
• Minting SRC tokens via CPI to SPL Token program
• Managing the Energy Vault (buyback, staking, DAO, emergency funds)
• Device lifecycle management (8 states per ADR-0005)
• Enforcing mint constraints (max supply, nonce, timestamp, power limits)

enrg-profile — Energy Profile

Manages energy producer profiles with:

• Participant profiles (PDA per wallet)
• Device registration and metadata
• 30-day rolling energy window
• Rated power configuration (determines max energy per mint)

enrg-mvp calls enrg_profile::cpi::record_production during each mint via declare_program! to update the producer's energy profile.

Device Lifecycle (ADR-0005)

Every device follows a cryptographically enforced state machine with 8 states:

UNREGISTERED → REGISTERED → CLAIMED → PROVISIONED → ACTIVE
                                                          │
                                          ┌───────────────┼──────────────┐
                                          ▼               ▼              ▼
                                      QUARANTINE    MAINTENANCE     REVOKED
                                          │               │
                                          └───────→ ACTIVE ←──────────┘

• UNREGISTERED — device unknown to the system
• REGISTERED — cryptographic identity created, not yet bound to owner
• CLAIMED — bound to owner, not yet configured
• PROVISIONED — Wi-Fi configured, time synced, manifest received
• ACTIVE — producing and sending Proofs
• QUARANTINE — under suspicion, Proofs not minted
• MAINTENANCE — service mode, no Proofs sent
• REVOKED — permanently removed

Oracle System

The ENRG Oracle is a permissioned off-chain service that bridges the physical and digital worlds:

• Ingests signed device telemetry over HTTPS
• Verifies Ed25519 signatures using solana_instructions_sysvar
• Validates monotonic nonces and timestamps (replay protection)
• Aggregates readings into pools (1 MWh threshold for minting)
• Submits mint_energy instructions to the enrg-mvp program

In the MVP, the oracle is a Node.js server deployed on Render. Future versions will use a decentralized Switchboard oracle network for redundant verification.

Oracle API

Base URL: https://enrg-oracle.onrender.com/api/v1

Governance

ENRG Protocol v1 is governed by the founding team. A DAO governance model is planned for v2, where SRC token holders will be able to vote on:

• Approved device categories and verification standards
• Oracle operator set and quorum thresholds
• Protocol fee parameters
• Treasury allocation

Protocol evolution follows the ENRG RFC process and Architecture Decision Records (ADR). All changes are transparent, documented, and publicly reviewable.

Roadmap

Team

ENRG Protocol is built by a team of blockchain engineers and renewable energy specialists.

For inquiries: anton@enrg.network