#TBC# 1. The Genetic Restructuring of Systems and Technology: The Governance Revolution of the UTXO Model

1.1 The Governance Dilemma of Traditional Models

The account-based stablecoins dominated by the West (such as the ERC-20 standard) have systemic flaws: the account balance system obscures the flow of funds, necessitating the construction of complex retroactive systems for financial audits; policy rules must be implemented through the stacking of smart contracts, significantly increasing systemic risk and development costs; real-time network verification mechanisms are difficult to adapt to weak network environments such as remote areas and disaster scenarios; the reliance on account status leads to concurrency bottlenecks, which cannot support the massive demand for hundreds of millions of electronic payments per day in large-scale economies. These technical characteristics determine that it is difficult to meet the core demands of emerging market governance systems for precise capital control and transparent regulation.

1.2 Paradigm Shift of UTXO Model

The TBC inherited Bitcoin UTXO architecture realizes the deep embedding of governance logic through underlying genetic modification.

Threefold Leap in Technological Implementation:

1. Atomization of governance units: Each UTXO becomes an independent governance unit carrying complete policy attributes, achieving the "micro-particleization" of financial funds.

2. Rule operation automation: Compile policy text into executable on-chain scripts through BVM (Bitcoin Virtual Machine), forming an implementation mechanism of "code is law".

3. Regulatory Verification Localization: Transaction compliance is verified locally at the node, avoiding performance loss caused by global state synchronization.

1.3 Technological Transformation of System Advantages

This architecture implements three major governance upgrades:

• Fiscal discipline is made rigid: the restrictions on the use, timeliness, and region of special funds are embedded into the monetary data structure, forming an unalterable "fiscal constraint gene".

• Regulatory penetration and direct access: Establishing a full-chain penetrating regulatory system from the central financial level to end users through the traceability code system carried by UTXO.

• Intelligent policy transmission: Triggering capital recovery, quota adjustment and other operations based on preset conditions to achieve dynamic and precise regulation of fiscal policy.

This "on-chain rule automation" smart architecture can ensure the rigid constraints of policy execution while maintaining flexible space for institutional adjustments, forming a digital currency governance paradigm that adapts to large-scale governance needs.