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This instructable is really great, Love it!Especially your thoughts about the rotary encoder problematic in the beginning really deepen the knowledge here.However, I think your wiring diagram is really confusing. It only makes clear how to connect the sensory inputs. But in your sketch you don't show the connection with VDD. I suggest you add the connection with 3.3V or 5.5V as it might not get clear to beginners that the rotary encoder needs a driving current to work. Also in my setup I had to use resistors on the inputs. This could be added as well.