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With the release of ElkNet v2, Elk moves one step closer to becoming a community-governed peer-to-peer network.
ELK has been allocated to fixed Reservoir contract addresses on every chain except Avalanche, which will serve as the governance chain. On the governance chain (Avalanche), ELK is allocated to the following contracts and in the following amounts:
- 10M ELK: allocated to an Exploit Insurance contract
- 5M ELK: allocated to an Elk Service Company Treasury contract
- 2M ELK: allocated to a Team Vesting contract
- 10M ELK: allocated to a Farming Emissions Contract contract
- The remaining ELK is split between the circulating supply and the Community Treasury contract
This contract stores 10M $ELK to be used for insurance against any unforeseen exploits of the ElkNet. It is subject to Elk governance. The proposed reserve is equivalent to more than 3 days of transfers based on current daily ElkNet transfers limits per chain (this assumes that a malicious exploit would be discovered in three days). In the event of a double-spend attack, ELK will be burned from this fund to ensure that the circulation of ELK never reaches more than 42M. In the event of attacks involving other tokens interacting with ElkNet, these funds can cover the losses incurred by third parties.
This treasury contract is controlled by the Elk Service Company multi-sig. The contract releases a maximum of 10k ELK per week up to a total of 5M ELK. These funds are intended to cover the development and operating expenses of the Elk Service Company in promoting the growth of Elk. Claims will not begin until the Elk Service Company becomes an incorporated entity.
This contract releases a maximum of 1k ELK per day up to a maximum of 2M ELK. These funds can be claimed without restriction by the developers, per the original litepaper, and are used for team compensation and regular operating expenses. Neither the Elk Service Company nor the Elk governance has oversight over the use of the funds.
A unified contract storing emissions reserves until farming ends. This contract holds the emissions to be released according to the determined schedule. The team maintains responsibility for allocating emissions to the farms in the best interest of the project until the establishment of a full fledged governance body.
The Community Treasury will be controlled by Elk governance. The contract will place a hard cap of 2M ELK to be spent by governance per year on proposals achieving a simple voting majority once governance is fully implemented.