Key Concepts

1.Embedded Energy Wallet

Wattlet functions as an embedded energy wallet designed to store and manage digital assets that represent electricity value. The wallet provides a secure environment for holding tokens, initiating transfers, and settling conversions between supported assets. Its structure enables electricity-linked value to be accessed and used directly through a unified interface, without requiring external tools or custodial services.

Key properties of the wallet include:

• management of multiple asset types, including regional KWT tokens and standard digital currencies

• consistent handling of pricing and conversions within the same environment

• settlement behavior designed for predictable and transparent outcomes

This wallet layer forms the operational foundation of Wattlet’s system.

2.Energy-Denominated Tokens (KWT)

KWT is a category of tokens representing electricity value based on regional retail pricing. Each variant corresponds to one country or market (e.g., KWTCN for China, KWTUK for the United Kingdom), and its value is updated using verified electricity price data.

Characteristics:

• each KWT variant reflects the cost of 1 kWh of electricity in its respective region

• pricing is synchronized through external data sources processed by Wattlet’s oracle framework

• KWT tokens allow electricity value to be expressed, transferred, and converted through the platform

KWT does not represent electricity delivery or supply; it represents electricity value as a digital unit for reference, exchange, and settlement within the system.

3.WATT Utility Token

WATT is the utility token used for reward distribution, staking mechanisms, and platform-level incentives. It functions as the internal asset that supports participation in specific features within Wattlet.

Key roles:

• distributed as incentives for activities such as liquidity provision or staking

• used within staking modules to generate periodic rewards

• acts as a complementary asset to KWT, supporting system operations

WATT is not positioned as a governance token in the current version of Wattlet.

4.Oracle Pricing Framework

The oracle framework delivers verified retail electricity pricing and relevant reference data to the platform. These data inputs are used to update the value of each regional KWT variant and to calculate conversion ratios within the wallet.

Oracle responsibilities include:

• retrieving electricity pricing from validated external sources

• synchronizing updated price points at defined intervals

• ensuring consistency across different regional KWT variants

The framework ensures that electricity-linked values are represented accurately and remain aligned with their corresponding real-world markets.

5.AMM-Based Conversion Mechanism

Wattlet uses an automated market maker (AMM) model to support conversions between KWT and supported digital currencies such as USDT. This mechanism determines exchange ratios based on the composition of liquidity pools and available token balances.

Features:

• continuous availability of conversion without order books

• pricing determined automatically from liquidity pool ratios

• execution and settlement handled directly within the wallet

The AMM mechanism is optimized for stability and predictable behavior rather than speculative trading.

6.Regional KWT Variants

Each KWT token variant corresponds to a specific geographic market and has an independent price source. This structure allows electricity value to be represented according to local market conditions rather than a global average.

Key points:

• no conversion occurs between KWT variants (e.g., KWTUK cannot directly convert to KWTCN)

• each variant tracks the pricing of its associated region

• variants can be exchanged against supported stablecoins via the AMM model

This structure maintains consistency and prevents cross-region price interference.