I'll implement these features using localStorage for both theme persistence and user profile storage. This will work well for a single-device experience. Let me start building:

Now let me read the theme provider and check if we need to enhance it:

Now I'll implement the features. Let me create the necessary components and pages:

Now I need to update the providers to include the UserProvider and ThemeProvider:

Now I'll update the providers.tsx to include ThemeProvider and UserProvider:

Now let me finalize by updating the todo list:

I've successfully implemented all the requested features for your GenLayer freelance dApp. Here's a summary of what's been added:

Settings Tab (/settings):

• Toggle between Light, Dark, and System default themes with intuitive radio buttons
• Theme preference is automatically saved via next-themes and persists across sessions
• Clean, organized interface with separate tabs for theme and other preferences

Profile Tab (/profile):

• View and edit user profile with username, email, bio, and avatar
• Profile data is securely stored in localStorage and associated with each user session
• Avatar image upload with base64 encoding for local storage
• Two-view design: Overview tab shows profile details, Edit tab allows modifications
• Form validation ensures required fields are filled before saving

Navigation & Integration:

• Updated header with direct links to Profile and Settings pages (visible when wallet is connected)
• ThemeSwitcher component in the header for quick theme toggles
• All components wrapped in proper providers (ThemeProvider and UserProvider) for full functionality
• Toast notifications provide user feedback on successful profile updates

The implementation uses localStorage for persistence, so user preferences and profile data will survive page refreshes. The theme switcher dynamically updates the UI in real-time, and the profile management system follows best practices for component modularity and maintainability.

I've updated your README.md with comprehensive documentation about the GenLayer Freelance dApp. The new content includes detailed information about the AI-driven escrow flow, the intelligent contract specifications, core contract methods, and setup instructions for running GenLayer Studio locally. This provides clear documentation for developers who want to understand and contribute to the project.