diff --git a/.github/workflows/dusk_ci.yml b/.github/workflows/dusk_ci.yml
index 37fdc9f..a6a4336 100644
--- a/.github/workflows/dusk_ci.yml
+++ b/.github/workflows/dusk_ci.yml
@@ -18,14 +18,20 @@ jobs:
     name: Dusk Analyzer
     uses: dusk-network/.github/.github/workflows/dusk-analysis.yml@main
 
-  test_std:
-    name: tests std
+  test_core_std:
+    name: test core std
     uses: dusk-network/.github/.github/workflows/run-tests.yml@main
     with:
-      test_flags: --features alloc
+      test_flags: -p phoenix-core --features alloc
 
-  test_rkyv:
-    name: tests rkyv
+  test_core_rkyv:
+    name: test core rkyv
     uses: dusk-network/.github/.github/workflows/run-tests.yml@main
     with:
-      test_flags: --features rkyv-impl
+      test_flags: -p phoenix-core --features rkyv-impl
+
+  test_circuits:
+    name: test cirucits
+    uses: dusk-network/.github/.github/workflows/run-tests.yml@main
+    with:
+      test_flags: -p phoenix-circuits
diff --git a/.gitignore b/.gitignore
index 4cbb223..58f4d26 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,4 +1,2 @@
-/target
-**/*.rs.bk
-/src/main.rs
+**/target
 Cargo.lock
diff --git a/Cargo.toml b/Cargo.toml
index 5cf6568..8679fc3 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -1,51 +1,6 @@
-[package]
-name = "phoenix-core"
-version = "0.27.0"
-authors = ["zer0 <matteo@dusk.network>", "Victor Lopez <victor@dusk.network"]
-edition = "2021"
-repository = "https://github.com/dusk-network/phoenix-core"
-description = "Anonymity-preserving zero-knowledge proof-powered transaction model"
-license = "MPL-2.0"
-exclude = [".github/workflows/dusk-ci.yml", ".gitignore"]
-
-[dependencies]
-rand_core = { version = "0.6", default-features = false }
-dusk-bytes = "0.1"
-dusk-plonk = { version = "0.19", default-features = false, optional = true }
-dusk-bls12_381 = { version = "0.13", default-features = false }
-bls12_381-bls = { version = "0.3", default-features = false }
-dusk-jubjub = { version = "0.14", default-features = false, features = ["zeroize"] }
-dusk-poseidon = { version = "0.33", default-features = false }
-jubjub-schnorr = { version = "0.3", default-features = false }
-subtle = { version = "^2.2.1", default-features = false }
-ff = { version = "0.13", default-features = false }
-aes-gcm = "0.10"
-zeroize = { version = "1", default-features = false, features = ["derive"] }
-rkyv = { version = "0.7", optional = true, default-features = false }
-bytecheck = { version = "0.6", optional = true, default-features = false }
-
-[dev-dependencies]
-assert_matches = "1.3"
-rand = "0.8"
-rkyv = { version = "0.7", default-features = false, features = ["size_32"] }
-
-[features]
-default = []    # "alloc" is suggested as default feature but would be breaking change
-alloc = []
-rkyv-impl = [
-    "dusk-poseidon/rkyv-impl",
-    "dusk-jubjub/rkyv-impl",
-    "jubjub-schnorr/rkyv-impl",
-    "dusk-bls12_381/rkyv-impl",
-    "bls12_381-bls/rkyv-impl",
-    "rkyv",
-    "bytecheck"
+[workspace]
+members = [
+    "core",
+    "circuits",
 ]
-zk = [
-    "dusk-plonk",
-]
-
-[[test]]
-name = "gadgets"
-path = "tests/gadgets.rs"
-required-features = ["zk"]
+resolver = "2"
diff --git a/README.md b/README.md
index 8b5775f..0e3b581 100644
--- a/README.md
+++ b/README.md
@@ -1,29 +1,11 @@
-# Phoenix Core
+# Phoenix
 
-Phoenix is an anonymity-preserving zero-knowledge proof-powered transaction model formalized and developed by Dusk Network.
+Phoenix is the transaction model used by Dusk, an open-source public blockchain with a UTXO-based architecture that allows for the execution of obfuscated transactions and confidential smart contracts.
 
-# General
+In privacy-preserving blockchains, there are no accounts or wallets at the protocol layer. Instead, coins are stored as a list of UTXOs with a quantity and some criteria for spending it. In this approach, transactions are created by consuming existing UTXOs and producing new ones in their place. Dusk follows this system, and UTXOs are called notes.
 
-Although somewhat based on the UTXO model utilized in the [Zcash protocol](https://github.com/zcash/zips/blob/master/protocol/protocol.pdf), Phoenix is uniquely capable to enable privacy-preserving smart contract by allowing confidential spending of public output (gas and coinbase transactions).
+Unlike transparent transaction models, where it is easy to monitor which notes were spent, this task is much harder in a privacy-preserving network, since the details of the notes must be kept hidden. In this case, the network must keep track of all notes ever created by storing their hashes in the leaves of a Merkle tree (called Merkle tree of notes). That is, when a transaction is validated, the network includes the hashes of the new notes to the leaves of this tree.
+To prevent double spending, transactions include a list of deterministic values called nullifiers, one for each note being spent, which invalidates these notes.
+The idea here is that the nullifier is computed in such a way that an external observer cannot link it to any specific note. This way, when a transaction is accepted, the network knows that some notes are nullified and can no longer be spent, but does not know which ones.
 
-Unlike Zcash, in which transactions can be potentially linked [\[1\]](https://arxiv.org/pdf/1712.01210)[\[2\]](https://orbilu.uni.lu/bitstream/10993/39996/1/Zcash_Miner_Linking%20%282%29.pdf), Phoenix guarantees transaction unlinkability through combining the so-called "obfuscated notes" (i.e. outputs containing encrypted values) with "transparent notes" (i.e. outputs containing plain values) into a single Merkle Tree.
-
-All the transactions utilize one-time keys. It is totally up to the user how he wants to manage his secret key: he could have one or many secret keys for many unspent outputs. The inner Diffie-Hellman key exchange randomness mechanism guarantees the note public key will not repeat for the same spender public key, which causes the identification of the spender to be unfeasible.
-
-For further details, check out the technical paper to be published soon.
-
-# Concepts
-
-## Zero-knowledge
-
-Phoenix uses zero-knowledge proofs to guarantee:
-
-- Transaction balance consistency
-- Prevent double-spending attacks
-- Prove the ownership of unspent outputs
-
-The set of unspent outputs is a union of obfuscated and transparent note sets. Both notes share a similar structure aside from the obfuscated containing encrypted values and transparent notes containing plain values.
-
-The owner of a note can share his/her `View Key`, allowing a third-party (e.g. a wallet provider) to detect the outputs belonging to the owner as well as the value of the encrypted in the note, in case of an obfuscated note.
-
-The spending of a note can be done only via a `Secret Key`, known only to the owner of the note.
+Please refer to the [docs](https://github.com/dusk-network/phoenix/blob/master/docs/protocol-description.pdf) for more detail.
diff --git a/circuits/CHANGELOG.md b/circuits/CHANGELOG.md
new file mode 100644
index 0000000..9cebbc7
--- /dev/null
+++ b/circuits/CHANGELOG.md
@@ -0,0 +1,19 @@
+# Changelog
+
+All notable changes to this project will be documented in this file.
+
+The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
+and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
+
+## [Unreleased]
+
+### Added
+
+- Add `phoenix-circuits` as a workspace member of `phoenix` [#171]
+- Add elgamal encryption and decryption gadgets [#171]
+
+<!-- ISSUES -->
+[#171]: https://github.com/dusk-network/phoenix/issues/171
+
+<!-- VERSIONS -->
+[Unreleased]: https://github.com/dusk-network/phoenix/compare/v0.27.0...HEAD
diff --git a/circuits/Cargo.toml b/circuits/Cargo.toml
new file mode 100644
index 0000000..33e216b
--- /dev/null
+++ b/circuits/Cargo.toml
@@ -0,0 +1,19 @@
+[package]
+name = "phoenix-circuits"
+version = "0.1.0"
+edition = "2021"
+repository = "https://github.com/dusk-network/phoenix/circuits"
+description = "Circuit definitions for Phoenix, an privacy-preserving ZKP-based transaction model"
+license = "MPL-2.0"
+exclude = [".github/workflows/dusk-ci.yml", ".gitignore"]
+
+# See more keys and their definitions at https://doc.rust-lang.org/cargo/reference/manifest.html
+
+[dependencies]
+phoenix-core = { path = "../core" }
+dusk-plonk = { version = "0.19", default-features = false }
+dusk-jubjub = { version = "0.14", default-features = false }
+
+[dev-dependencies]
+ff = { version = "0.13", default-features = false }
+rand_core = { version = "0.6", default-features = false }
diff --git a/circuits/README.md b/circuits/README.md
new file mode 100644
index 0000000..091fb29
--- /dev/null
+++ b/circuits/README.md
@@ -0,0 +1,11 @@
+# Phoenix Circuits
+
+Phoenix is the transaction model used by Dusk, an open-source public blockchain with a UTXO-based architecture that allows for the execution of obfuscated transactions and confidential smart contracts.
+
+This library contains the implementation of the Phoenix-circuits, to prove, in zero-knowledge, that the following conditions hold true:
+
+1. Membership: every note that is about to be spent is included in the Merkle tree of notes.
+2. Ownership: the sender holds the note secret key for every note that is about to be spent.
+3. Nullification: the nullifier is calculated correctly.
+4. Minting: the value commitment for the newly minted notes are computed correctly.
+5. Balance integrity: the sum of the value of all spent notes is equal to the value of the sum of all minted notes + the gas fee + a crossover, where a crossover refers to funds being transfered to a contract.
diff --git a/src/encryption/elgamal.rs b/circuits/src/encryption/elgamal.rs
similarity index 89%
rename from src/encryption/elgamal.rs
rename to circuits/src/encryption/elgamal.rs
index 7a53f27..60e9840 100644
--- a/src/encryption/elgamal.rs
+++ b/circuits/src/encryption/elgamal.rs
@@ -10,8 +10,6 @@
 //! Reference: https://link.springer.com/chapter/10.1007/3-540-39568-7_2
 
 use dusk_jubjub::{JubJubExtended, JubJubScalar, GENERATOR};
-
-#[cfg(feature = "zk")]
 use dusk_plonk::prelude::*;
 
 /// Encrypts a JubJubExtended plaintext given a public key and a fresh random
@@ -27,8 +25,10 @@ pub fn encrypt(
     (ciphertext_1, ciphertext_2)
 }
 
-/// Decrypts a ciphertext given a secret key,
-/// returning a JubJubExtended plaintext
+/// Decrypts a ciphertext given a secret key.
+///
+/// ## Return
+/// Returns a JubJubExtended plaintext.
 pub fn decrypt(
     secret_key: &JubJubScalar,
     ciphertext_1: &JubJubExtended,
@@ -38,9 +38,8 @@ pub fn decrypt(
     ciphertext_2 - ciphertext_1 * secret_key
 }
 
-/// Encrypt in-circuit a plaintext WitnessPoint, returning
-/// a ciphertext (WitnessPoint, WitnessPoint)
-#[cfg(feature = "zk")]
+/// Encrypt in-circuit a plaintext WitnessPoint, returning a ciphertext
+/// (WitnessPoint, WitnessPoint)
 pub fn encrypt_gadget(
     composer: &mut Composer,
     public_key: WitnessPoint,
@@ -56,7 +55,6 @@ pub fn encrypt_gadget(
 
 /// Decrypt in-circuit a ciphertext (WitnessPoint, WitnessPoint),
 /// returning a plaintext WitnessPoint
-#[cfg(feature = "zk")]
 pub fn decrypt_gadget(
     composer: &mut Composer,
     secret_key: Witness,
diff --git a/src/encryption/mod.rs b/circuits/src/encryption/mod.rs
similarity index 88%
rename from src/encryption/mod.rs
rename to circuits/src/encryption/mod.rs
index 8c4fd2e..300d79f 100644
--- a/src/encryption/mod.rs
+++ b/circuits/src/encryption/mod.rs
@@ -4,8 +4,5 @@
 //
 // Copyright (c) DUSK NETWORK. All rights reserved.
 
-/// AES symmetric cipher
-pub mod aes;
-
 /// ElGamal asymmetric cipher
 pub mod elgamal;
diff --git a/circuits/src/lib.rs b/circuits/src/lib.rs
new file mode 100644
index 0000000..9c0f7bc
--- /dev/null
+++ b/circuits/src/lib.rs
@@ -0,0 +1,17 @@
+// This Source Code Form is subject to the terms of the Mozilla Public
+// License, v. 2.0. If a copy of the MPL was not distributed with this
+// file, You can obtain one at http://mozilla.org/MPL/2.0/.
+//
+// Copyright (c) DUSK NETWORK. All rights reserved.
+
+//! Phoenix's circuits and gadgets.
+
+#![allow(non_snake_case)]
+#![deny(missing_docs)]
+#![no_std]
+
+/// Encryption algorithm
+mod encryption;
+
+/// ElGamal asymmetric cipher
+pub use encryption::elgamal;
diff --git a/tests/gadgets.rs b/circuits/tests/elgamal.rs
similarity index 81%
rename from tests/gadgets.rs
rename to circuits/tests/elgamal.rs
index d302bf0..83e6ed8 100644
--- a/tests/gadgets.rs
+++ b/circuits/tests/elgamal.rs
@@ -5,12 +5,31 @@
 // Copyright (c) DUSK NETWORK. All rights reserved.
 
 use dusk_jubjub::{JubJubAffine, JubJubScalar, GENERATOR_EXTENDED};
+use dusk_plonk::prelude::*;
 use ff::Field;
+use phoenix_circuits::elgamal;
+use phoenix_core::{PublicKey, SecretKey};
 use rand_core::OsRng;
 
-use phoenix_core::{elgamal, PublicKey, SecretKey};
+#[test]
+fn test_elgamal_encrypt_and_decrypt() {
+    let sk = SecretKey::random(&mut OsRng);
+    let pk = PublicKey::from(&sk);
 
-use dusk_plonk::prelude::*;
+    let message = GENERATOR_EXTENDED * JubJubScalar::from(1234u64);
+
+    // Encrypt using a fresh random value 'r'
+    let r = JubJubScalar::random(&mut OsRng);
+    let (c1, c2) = elgamal::encrypt(pk.A(), &message, &r);
+
+    // Assert decryption
+    let dec_message = elgamal::decrypt(sk.a(), &c1, &c2);
+    assert_eq!(message, dec_message);
+
+    // Assert decryption using an incorrect key
+    let dec_message_wrong = elgamal::decrypt(sk.b(), &c1, &c2);
+    assert_ne!(message, dec_message_wrong);
+}
 
 static LABEL: &[u8; 12] = b"dusk-network";
 const CAPACITY: usize = 13; // capacity required for the setup
diff --git a/CHANGELOG.md b/core/CHANGELOG.md
similarity index 61%
rename from CHANGELOG.md
rename to core/CHANGELOG.md
index 0468a65..6ea78db 100644
--- a/CHANGELOG.md
+++ b/core/CHANGELOG.md
@@ -16,6 +16,11 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### Changed
 
 - Restructure `Encryption` module.
+- Move phoenix-core into a phoenix workspace [#171]
+
+### Removed
+
+- Remove 'encryption::elgamal' module as it has been added to the 'phoenix-circuits' lib in the same workspace [#171]
 
 ## [0.27.0] - 2024-04-24
 
@@ -294,61 +299,62 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Canonical implementation shielded by feature.
 
 <!-- ISSUES -->
-[#162]: https://github.com/dusk-network/phoenix-core/issues/162
-[#166]: https://github.com/dusk-network/phoenix-core/issues/166
-[#165]: https://github.com/dusk-network/phoenix-core/issues/165
-[#156]: https://github.com/dusk-network/phoenix-core/issues/156
-[#155]: https://github.com/dusk-network/phoenix-core/issues/155
-[#152]: https://github.com/dusk-network/phoenix-core/issues/152
-[#136]: https://github.com/dusk-network/phoenix-core/issues/136
-[#126]: https://github.com/dusk-network/phoenix-core/issues/126
-[#119]: https://github.com/dusk-network/phoenix-core/issues/119
-[#116]: https://github.com/dusk-network/phoenix-core/issues/116
-[#114]: https://github.com/dusk-network/phoenix-core/issues/114
-[#107]: https://github.com/dusk-network/phoenix-core/issues/107
-[#96]: https://github.com/dusk-network/phoenix-core/issues/96
-[#94]: https://github.com/dusk-network/phoenix-core/issues/94
-[#92]: https://github.com/dusk-network/phoenix-core/issues/92
-[#88]: https://github.com/dusk-network/phoenix-core/issues/88
-[#86]: https://github.com/dusk-network/phoenix-core/issues/86
-[#85]: https://github.com/dusk-network/phoenix-core/issues/85
-[#84]: https://github.com/dusk-network/phoenix-core/issues/84
-[#80]: https://github.com/dusk-network/phoenix-core/issues/80
-[#76]: https://github.com/dusk-network/phoenix-core/issues/76
-[#72]: https://github.com/dusk-network/phoenix-core/issues/72
-[#69]: https://github.com/dusk-network/phoenix-core/issues/69
-[#67]: https://github.com/dusk-network/phoenix-core/issues/67
-[#61]: https://github.com/dusk-network/phoenix-core/issues/61
+[#171]: https://github.com/dusk-network/phoenix/issues/171
+[#166]: https://github.com/dusk-network/phoenix/issues/166
+[#165]: https://github.com/dusk-network/phoenix/issues/165
+[#162]: https://github.com/dusk-network/phoenix/issues/162
+[#156]: https://github.com/dusk-network/phoenix/issues/156
+[#155]: https://github.com/dusk-network/phoenix/issues/155
+[#152]: https://github.com/dusk-network/phoenix/issues/152
+[#136]: https://github.com/dusk-network/phoenix/issues/136
+[#126]: https://github.com/dusk-network/phoenix/issues/126
+[#119]: https://github.com/dusk-network/phoenix/issues/119
+[#116]: https://github.com/dusk-network/phoenix/issues/116
+[#114]: https://github.com/dusk-network/phoenix/issues/114
+[#107]: https://github.com/dusk-network/phoenix/issues/107
+[#96]: https://github.com/dusk-network/phoenix/issues/96
+[#94]: https://github.com/dusk-network/phoenix/issues/94
+[#92]: https://github.com/dusk-network/phoenix/issues/92
+[#88]: https://github.com/dusk-network/phoenix/issues/88
+[#86]: https://github.com/dusk-network/phoenix/issues/86
+[#85]: https://github.com/dusk-network/phoenix/issues/85
+[#84]: https://github.com/dusk-network/phoenix/issues/84
+[#80]: https://github.com/dusk-network/phoenix/issues/80
+[#76]: https://github.com/dusk-network/phoenix/issues/76
+[#72]: https://github.com/dusk-network/phoenix/issues/72
+[#69]: https://github.com/dusk-network/phoenix/issues/69
+[#67]: https://github.com/dusk-network/phoenix/issues/67
+[#61]: https://github.com/dusk-network/phoenix/issues/61
 
 <!-- VERSIONS -->
-[Unreleased]: https://github.com/dusk-network/phoenix-core/compare/v0.27.0...HEAD
-[0.27.0]: https://github.com/dusk-network/phoenix-core/compare/v0.26.0...v0.27.0
-[0.26.0]: https://github.com/dusk-network/phoenix-core/compare/v0.25.0...v0.26.0
-[0.25.0]: https://github.com/dusk-network/phoenix-core/compare/v0.24.0...v0.25.0
-[0.24.0]: https://github.com/dusk-network/phoenix-core/compare/v0.23.0...v0.24.0
-[0.23.0]: https://github.com/dusk-network/phoenix-core/compare/v0.22.0...v0.23.0
-[0.22.0]: https://github.com/dusk-network/phoenix-core/compare/v0.21.0...v0.22.0
-[0.21.0]: https://github.com/dusk-network/phoenix-core/compare/v0.19.0...v0.21.0
-[0.19.0]: https://github.com/dusk-network/phoenix-core/compare/v0.18.1...v0.19.0
-[0.18.1]: https://github.com/dusk-network/phoenix-core/compare/v0.18.0...v0.18.1
-[0.18.0]: https://github.com/dusk-network/phoenix-core/compare/v0.17.1...v0.18.0
-[0.17.1]: https://github.com/dusk-network/phoenix-core/compare/v0.17.0...v0.17.1
-[0.17.0]: https://github.com/dusk-network/phoenix-core/compare/v0.12.0...v0.17.0
-[0.12.0]: https://github.com/dusk-network/phoenix-core/compare/v0.11.0...v0.12.0
-[0.11.0]: https://github.com/dusk-network/phoenix-core/compare/v0.10.0...v0.11.0
-[0.10.0]: https://github.com/dusk-network/phoenix-core/compare/v0.9.1...v0.10.0
-[0.9.1]: https://github.com/dusk-network/phoenix-core/compare/v0.9.0...v0.9.1
-[0.9.0]: https://github.com/dusk-network/phoenix-core/compare/v0.8.0...v0.9.0
-[0.8.0]: https://github.com/dusk-network/phoenix-core/compare/v0.7.4...v0.8.0
-[0.7.4]: https://github.com/dusk-network/phoenix-core/compare/v0.7.3...v0.7.4
-[0.7.3]: https://github.com/dusk-network/phoenix-core/compare/v0.7.2...v0.7.3
-[0.7.2]: https://github.com/dusk-network/phoenix-core/compare/v0.7.1...v0.7.2
-[0.7.1]: https://github.com/dusk-network/phoenix-core/compare/v0.7.0...v0.7.1
-[0.7.0]: https://github.com/dusk-network/phoenix-core/compare/v0.6.0...v0.7.0
-[0.6.0]: https://github.com/dusk-network/phoenix-core/compare/v0.5.1...v0.6.0
-[0.5.1]: https://github.com/dusk-network/phoenix-core/compare/v0.5.0...v0.5.1
-[0.5.0]: https://github.com/dusk-network/phoenix-core/compare/v0.3.1...v0.5.0
-[0.3.1]: https://github.com/dusk-network/phoenix-core/compare/v0.3.0...v0.3.1
-[0.3.0]: https://github.com/dusk-network/phoenix-core/compare/v0.2.0...v0.3.0
-[0.2.0]: https://github.com/dusk-network/phoenix-core/compare/v0.1.0...v0.2.0
-[0.1.0]: https://github.com/dusk-network/phoenix-core/releases/tag/v0.1.0
+[Unreleased]: https://github.com/dusk-network/phoenix/compare/v0.27.0...HEAD
+[0.27.0]: https://github.com/dusk-network/phoenix/compare/v0.26.0...v0.27.0
+[0.26.0]: https://github.com/dusk-network/phoenix/compare/v0.25.0...v0.26.0
+[0.25.0]: https://github.com/dusk-network/phoenix/compare/v0.24.0...v0.25.0
+[0.24.0]: https://github.com/dusk-network/phoenix/compare/v0.23.0...v0.24.0
+[0.23.0]: https://github.com/dusk-network/phoenix/compare/v0.22.0...v0.23.0
+[0.22.0]: https://github.com/dusk-network/phoenix/compare/v0.21.0...v0.22.0
+[0.21.0]: https://github.com/dusk-network/phoenix/compare/v0.19.0...v0.21.0
+[0.19.0]: https://github.com/dusk-network/phoenix/compare/v0.18.1...v0.19.0
+[0.18.1]: https://github.com/dusk-network/phoenix/compare/v0.18.0...v0.18.1
+[0.18.0]: https://github.com/dusk-network/phoenix/compare/v0.17.1...v0.18.0
+[0.17.1]: https://github.com/dusk-network/phoenix/compare/v0.17.0...v0.17.1
+[0.17.0]: https://github.com/dusk-network/phoenix/compare/v0.12.0...v0.17.0
+[0.12.0]: https://github.com/dusk-network/phoenix/compare/v0.11.0...v0.12.0
+[0.11.0]: https://github.com/dusk-network/phoenix/compare/v0.10.0...v0.11.0
+[0.10.0]: https://github.com/dusk-network/phoenix/compare/v0.9.1...v0.10.0
+[0.9.1]: https://github.com/dusk-network/phoenix/compare/v0.9.0...v0.9.1
+[0.9.0]: https://github.com/dusk-network/phoenix/compare/v0.8.0...v0.9.0
+[0.8.0]: https://github.com/dusk-network/phoenix/compare/v0.7.4...v0.8.0
+[0.7.4]: https://github.com/dusk-network/phoenix/compare/v0.7.3...v0.7.4
+[0.7.3]: https://github.com/dusk-network/phoenix/compare/v0.7.2...v0.7.3
+[0.7.2]: https://github.com/dusk-network/phoenix/compare/v0.7.1...v0.7.2
+[0.7.1]: https://github.com/dusk-network/phoenix/compare/v0.7.0...v0.7.1
+[0.7.0]: https://github.com/dusk-network/phoenix/compare/v0.6.0...v0.7.0
+[0.6.0]: https://github.com/dusk-network/phoenix/compare/v0.5.1...v0.6.0
+[0.5.1]: https://github.com/dusk-network/phoenix/compare/v0.5.0...v0.5.1
+[0.5.0]: https://github.com/dusk-network/phoenix/compare/v0.3.1...v0.5.0
+[0.3.1]: https://github.com/dusk-network/phoenix/compare/v0.3.0...v0.3.1
+[0.3.0]: https://github.com/dusk-network/phoenix/compare/v0.2.0...v0.3.0
+[0.2.0]: https://github.com/dusk-network/phoenix/compare/v0.1.0...v0.2.0
+[0.1.0]: https://github.com/dusk-network/phoenix/releases/tag/v0.1.0
diff --git a/core/Cargo.toml b/core/Cargo.toml
new file mode 100644
index 0000000..4948acb
--- /dev/null
+++ b/core/Cargo.toml
@@ -0,0 +1,41 @@
+[package]
+name = "phoenix-core"
+version = "0.27.0"
+edition = "2021"
+repository = "https://github.com/dusk-network/phoenix/core"
+description = "Core types and functionalities for Phoenix, an privacy-preserving ZKP-based transaction model"
+license = "MPL-2.0"
+exclude = [".github/workflows/dusk-ci.yml", ".gitignore"]
+
+[dependencies]
+rand_core = { version = "0.6", default-features = false }
+dusk-bytes = "0.1"
+dusk-bls12_381 = { version = "0.13", default-features = false }
+bls12_381-bls = { version = "0.3", default-features = false }
+dusk-jubjub = { version = "0.14", default-features = false, features = ["zeroize"] }
+dusk-poseidon = { version = "0.33", default-features = false }
+jubjub-schnorr = { version = "0.3", default-features = false }
+subtle = { version = "^2.2.1", default-features = false }
+ff = { version = "0.13", default-features = false }
+aes-gcm = "0.10"
+zeroize = { version = "1", default-features = false, features = ["derive"] }
+rkyv = { version = "0.7", optional = true, default-features = false }
+bytecheck = { version = "0.6", optional = true, default-features = false }
+
+[dev-dependencies]
+assert_matches = "1.3"
+rand = "0.8"
+rkyv = { version = "0.7", default-features = false, features = ["size_32"] }
+
+[features]
+default = []    # "alloc" is suggested as default feature but would be breaking change
+alloc = []
+rkyv-impl = [
+    "dusk-poseidon/rkyv-impl",
+    "dusk-jubjub/rkyv-impl",
+    "jubjub-schnorr/rkyv-impl",
+    "dusk-bls12_381/rkyv-impl",
+    "bls12_381-bls/rkyv-impl",
+    "rkyv",
+    "bytecheck"
+]
diff --git a/core/README.md b/core/README.md
new file mode 100644
index 0000000..2f83fff
--- /dev/null
+++ b/core/README.md
@@ -0,0 +1,5 @@
+# Phoenix Core
+
+Phoenix is the transaction model used by Dusk, an open-source public blockchain with a UTXO-based architecture that allows for the execution of obfuscated transactions and confidential smart contracts.
+
+This library contains the cryptographic primitives, types and functionalities used in phoenix, except for the zero-knowledge circuits.
diff --git a/src/convert.rs b/core/src/convert.rs
similarity index 100%
rename from src/convert.rs
rename to core/src/convert.rs
diff --git a/src/crossover.rs b/core/src/crossover.rs
similarity index 100%
rename from src/crossover.rs
rename to core/src/crossover.rs
diff --git a/src/encryption/aes.rs b/core/src/encryption/aes.rs
similarity index 100%
rename from src/encryption/aes.rs
rename to core/src/encryption/aes.rs
diff --git a/core/src/encryption/mod.rs b/core/src/encryption/mod.rs
new file mode 100644
index 0000000..f0fa278
--- /dev/null
+++ b/core/src/encryption/mod.rs
@@ -0,0 +1,8 @@
+// This Source Code Form is subject to the terms of the Mozilla Public
+// License, v. 2.0. If a copy of the MPL was not distributed with this
+// file, You can obtain one at http://mozilla.org/MPL/2.0/.
+//
+// Copyright (c) DUSK NETWORK. All rights reserved.
+
+/// AES symmetric cipher
+pub mod aes;
diff --git a/src/error.rs b/core/src/error.rs
similarity index 100%
rename from src/error.rs
rename to core/src/error.rs
diff --git a/src/fee.rs b/core/src/fee.rs
similarity index 100%
rename from src/fee.rs
rename to core/src/fee.rs
diff --git a/src/fee/remainder.rs b/core/src/fee/remainder.rs
similarity index 100%
rename from src/fee/remainder.rs
rename to core/src/fee/remainder.rs
diff --git a/src/keys.rs b/core/src/keys.rs
similarity index 100%
rename from src/keys.rs
rename to core/src/keys.rs
diff --git a/src/keys/public.rs b/core/src/keys/public.rs
similarity index 100%
rename from src/keys/public.rs
rename to core/src/keys/public.rs
diff --git a/src/keys/secret.rs b/core/src/keys/secret.rs
similarity index 100%
rename from src/keys/secret.rs
rename to core/src/keys/secret.rs
diff --git a/src/keys/stealth.rs b/core/src/keys/stealth.rs
similarity index 100%
rename from src/keys/stealth.rs
rename to core/src/keys/stealth.rs
diff --git a/src/keys/view.rs b/core/src/keys/view.rs
similarity index 100%
rename from src/keys/view.rs
rename to core/src/keys/view.rs
diff --git a/src/lib.rs b/core/src/lib.rs
similarity index 95%
rename from src/lib.rs
rename to core/src/lib.rs
index 396d484..56dcc42 100644
--- a/src/lib.rs
+++ b/core/src/lib.rs
@@ -32,8 +32,6 @@ mod encryption;
 
 /// AES symmetric cipher
 pub use encryption::aes;
-/// ElGamal asymmetric cipher
-pub use encryption::elgamal;
 /// Hash function
 pub use keys::hash;
 /// Public (Spend) Key
diff --git a/src/note.rs b/core/src/note.rs
similarity index 100%
rename from src/note.rs
rename to core/src/note.rs
diff --git a/src/transaction.rs b/core/src/transaction.rs
similarity index 100%
rename from src/transaction.rs
rename to core/src/transaction.rs
diff --git a/src/transaction/stake.rs b/core/src/transaction/stake.rs
similarity index 100%
rename from src/transaction/stake.rs
rename to core/src/transaction/stake.rs
diff --git a/src/transaction/transfer.rs b/core/src/transaction/transfer.rs
similarity index 100%
rename from src/transaction/transfer.rs
rename to core/src/transaction/transfer.rs
diff --git a/tests/crossover.rs b/core/tests/crossover.rs
similarity index 100%
rename from tests/crossover.rs
rename to core/tests/crossover.rs
diff --git a/tests/encryption.rs b/core/tests/encryption.rs
similarity index 53%
rename from tests/encryption.rs
rename to core/tests/encryption.rs
index 9d346b5..7a6252e 100644
--- a/tests/encryption.rs
+++ b/core/tests/encryption.rs
@@ -4,12 +4,10 @@
 //
 // Copyright (c) DUSK NETWORK. All rights reserved.
 
-use dusk_jubjub::{JubJubAffine, JubJubScalar, GENERATOR, GENERATOR_EXTENDED};
-use ff::Field;
+use dusk_jubjub::{JubJubAffine, JubJubScalar, GENERATOR};
+use phoenix_core::aes;
 use rand_core::OsRng;
 
-use phoenix_core::{aes, elgamal, PublicKey, SecretKey};
-
 #[test]
 fn test_aes_encrypt_and_decrypt() {
     const PLAINTEXT_SIZE: usize = 20;
@@ -27,23 +25,3 @@ fn test_aes_encrypt_and_decrypt() {
 
     assert_eq!(&dec_plaintext, plaintext);
 }
-
-#[test]
-fn test_elgamal_encrypt_and_decrypt() {
-    let sk = SecretKey::random(&mut OsRng);
-    let pk = PublicKey::from(&sk);
-
-    let message = GENERATOR_EXTENDED * JubJubScalar::from(1234u64);
-
-    // Encrypt using a fresh random value 'r'
-    let r = JubJubScalar::random(&mut OsRng);
-    let (c1, c2) = elgamal::encrypt(pk.A(), &message, &r);
-
-    // Assert decryption
-    let dec_message = elgamal::decrypt(sk.a(), &c1, &c2);
-    assert_eq!(message, dec_message);
-
-    // Assert decryption using an incorrect key
-    let dec_message_wrong = elgamal::decrypt(sk.b(), &c1, &c2);
-    assert_ne!(message, dec_message_wrong);
-}
diff --git a/tests/keys.rs b/core/tests/keys.rs
similarity index 100%
rename from tests/keys.rs
rename to core/tests/keys.rs
diff --git a/tests/note_test.rs b/core/tests/note_test.rs
similarity index 100%
rename from tests/note_test.rs
rename to core/tests/note_test.rs
diff --git a/tests/transaction.rs b/core/tests/transaction.rs
similarity index 100%
rename from tests/transaction.rs
rename to core/tests/transaction.rs