Oracles form the backbone of Elephant's economy, transforming real-world property data into blockchain-verified truth. The protocol divides each property into 20 independent fact groups—ownership, mortgages, liens, permits, valuations, and others—each requiring verification from three independent oracles who must reach unanimous consensus. This granular approach enables getting as much data as possible on-chain as fast as possible, rather than waiting for complete property records before beginning verification.

The reward structure creates urgency without sacrificing accuracy. For each fact group successfully verified, exactly 1 MAHOUT token is minted and distributed: approximately 81\% to the first oracle, 16\% to the second, and 3\% to the third. This exponential curve derives from game theory principles that balance first-mover advantages with the need for verification redundancy. The steep reward gradient incentivizes rapid response—being first matters—while still providing meaningful compensation for validators who ensure accuracy.

Being first is hardest because pioneers must develop data sourcing methods, build verification workflows, and establish quality standards without existing templates. These early oracles create the infrastructure that makes future oracle work significantly easier. They document data sources, automate verification processes, and establish best practices that subsequent oracles can leverage. The exponential reward curve compensates these pioneers for both their verification work and their pathfinding efforts that benefit the entire network.

Oracle participation requires staking MAHOUT tokens, with higher stakes earning priority access to unverified properties entering the system. This stake faces slashing penalties for submitting false data, creating skin in the game that ensures dedication to accuracy. The economic model transforms data verification from a cost center into a profit center for diligent oracles.