Deployment Modes of eERC

The eERC standard offers two deployment modes to fit different project needs: Standalone Mode and Converter Mode.
Both deliver encrypted balances and private transfers, but they differ in how the token is created and used.

Standalone Mode

• Token is private from creation, all balances and amounts are encrypted from the first mint.
• Uses ElGamal encryption over the BabyJubJub curve for privacy.
• Transaction proofs use Poseidon hashing for efficiency in zk-SNARKs.
• Optional hidden total supply to prevent public insight into circulation.
• Best suited for:
  • Enterprise payment systems.
  • Regulated financial assets with selective auditor access.
  • Private gaming economies on Avalanche L1s.

Converter Mode

• Wraps an existing ERC-20 token into an encrypted form.
• Allows private transfers using the eERC format while preserving the option to unwrap back to the public ERC-20.
• Uses the same encryption and proof flow as Standalone Mode.
• Best suited for:
  • Adding privacy to an already deployed public token.
  • Hybrid systems where some transactions are public and others private.
  • Bridging between public liquidity pools and private markets.

In the next section, we will explore Use Cases of eERC, including examples from Avalanche C-Chain Mainnet, Fuji (Testnet), and custom L1 deployments, along with a step-by-step view of a private transfer flow.