Governance Economics: Power Through Contribution
Governance in the Elephant protocol flows exclusively to those who build and maintain the network. vMAHOUT tokens, earned only through verified data contributions, determine voting power in protocol decisions. This isn't purchasable influence—every vMAHOUT represents actual work performed, data verified, and value created.
The governance model incorporates temporal decay to ensure power remains with active contributors. vMAHOUT voting strength decreases by 1-2\% weekly for inactive oracles, eventually approaching zero for those who stop contributing. If another oracle updates a fact group previously maintained by an inactive oracle, the associated vMAHOUT transfers to the active maintainer. This creates a governance system that naturally evolves with the network, preventing capture by early participants who cease contributing.
Governance token transfers between oracles incur 10-30\% burn penalties, allowing necessary operational transitions while preventing speculative governance markets. An oracle can transfer responsibilities when retiring or selling their business, but the burn ensures commitment to long-term participation rather than short-term governance arbitrage.