The classification of life should be based upon the fundamental mechanism in the evolution of life. We found that the global relationships among species should be circular phylogeny, which is quite different from the common sense based upon phylogenetic trees. The genealogical circles can be observed clearly according to the analysis of protein length distributions of contemporary species. Thus, we suggest that domains can be defined by distinguished phylogenetic circles, which are global and stable characteristics of living systems. The mechanism in genome size evolution has been clarified; hence main component questions on C-value enigma can be explained. According to the correlations and quasi-periodicity of protein length distributions, we can also classify life into three domains.