Token Flow Diagram

This section illustrates the economic pathway of the HUB token during a typical AI inference lifecycle. All payments, validations, and distributions are tightly coupled with zk-proof verification and on-chain enforcement.

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🧭 Flow Summary (Per 100 HUB Job):

      [User / dApp]
            │
   Pays 100 HUB for zk-Inference
            ▼
 ┌─────────────────────┐
 │   Inference Engine  │
 │   + zkProof Gen     │
 └────────┬────────────┘
          │
          ▼
 ┌─────────────────────┐
 │ Verifier Contract   │
 │ + Proof Validation  │
 └────────┬────────────┘
          │
          ▼
 ┌────────────────────────────────────────────┐
 │     Settlement Contract (Ethereum)        │
 │  • Logs output + proof                     │
 │  • Distributes payment based on outcome    │
 └────────┬───────────────────────────────────┘
          ▼
 ┌────────────┬────────────┬────────────┐
 │  Model     │ Executor   │ Verifier   │
 │  Owner     │ Node       │ Node       │
 │ (or RWA)   │            │            │
 │  60 HUB    │  20 HUB    │  20 HUB    │
 └────────────┴────────────┴────────────┘

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🔹 Settlement Logic

All HUB token transfers are executed automatically by smart contracts once a zk-proof is validated on-chain. If the proof is invalid or incomplete, no payout occurs, and staked parties may be slashed.

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🔄 On-Chain Settlement Process:

1. Verifier submits proof + validation metadata

2. zkRegistry checks:

   • Is the model registered?

   • Does the proof match the model hash?

   • Was the inference properly routed?

3. Settlement contract triggers payouts:

   • Funds are sent atomically from escrow.

   • Usage history is updated for scoring/royalty tracking.

   • Events emitted for dashboard / RWA sync.

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⚠️ Failsafe Mechanisms:

Case	Outcome
Invalid proof	No payout, potential slashing
Delayed executor	Penalty applied or job reassigned
Unregistered model	Job rejected, refund issued to user

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🌍 RWA Considerations:

• Royalty Streams: Model owner payout can be redirected to RWA token contracts, distributing yield to token holders.

• Auditability: Every inference and reward is linked to an event + zk-proof → usable in dashboards, reporting, and compliance.

• Trustless Execution: Because every payment is proof-gated, RWA structures inherit the same integrity guarantees.

Hubic transforms payment logic from “reputation-based” to “proof-enforced” — ideal for powering tokenized, revenue-yielding AI assets on Ethereum.