BNB Reserve - How It Is Funded

The BNB Reserve has 3 sources of funding:

  1. 10% of all Futures deposits (BNB) are sent to the BNB Reserve

  2. The BNB Reserve receives income from the Elephant Treasury (between 1 & 5% APR). The income from the Elephant Treasury goes into the Futures Sweep Pool where it is added to the BNB Reserve via the sweep function. Any community member can call the sweep function once the available is more than $100.

  3. A 10% Top Off strategy from large Futures claims handled by the Elephant Treasury. If a Futures claim value is greater than 1% of the BNB Reserve value, The Elephant Treasury will sell off 10% more than is required to pay out the Futures claim. The 10% Surplus is sent to the BNB Reserve as part of the Top Off strategy.

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