Policy#
The SLOHM protocol operates according to a defined set of parameters that govern staking, bonding, treasury management, and supply mechanics. These parameters are configured to balance protocol growth, participant incentives, and reserve security.
Parameter Framework#
Protocol parameters control the core behavior of the system. They determine how fast rewards are distributed, how long bonds vest, and how the protocol protects against destabilizing actions.
Staking Parameters#
| Parameter | Production | Testnet |
|---|---|---|
| Epoch length | 48 blocks (~8 hours) | 48 blocks |
| Reward rate | 0.1% per epoch | 0.1% per epoch |
| Warmup period | 2 epochs (96 blocks) | 0 epochs (instant) |
| Cooldown period | 3 days (~432 blocks) | 1 block (~10 seconds) |
The epoch length determines how frequently rebases occur. The reward rate sets the percentage of staked supply distributed as new SLOHM each epoch. The warmup period prevents flash-staking attacks, and the cooldown period protects against sudden mass unstaking.
See Staking for detailed mechanics.
Bonding Parameters#
| Parameter | Production | Testnet |
|---|---|---|
| Vesting term | 720 blocks (~5 days) | 5 blocks (~50 seconds) |
| Bond control variable (BCV) | Dynamic | 100 |
| Accepted assets | BTC, Moto, Pill | BTC, Moto, Pill |
The vesting term determines how long bonds take to fully pay out. The bond control variable influences premium calculations. Accepted assets define which tokens can be bonded into the treasury.
See Bonding for detailed mechanics.
Supply Control#
SLOHM has no fixed supply cap. New tokens enter circulation through exactly two controlled paths:
- Bond payouts. New SLOHM is minted when users claim vested bonds. The treasury must hold sufficient backing before any mint occurs.
- Staking rebases. New SLOHM is minted and distributed to stakers each epoch, funded by treasury yield.
No other mechanism can create new SLOHM. The treasury contract enforces a backing check on every mint operation, ensuring that total supply never exceeds total reserve value (including pending bond obligations).
Governance#
SLOHM does not operate with a DAO governance layer. Protocol parameters are configured by the development team during the pre-launch and early operational phases. This design choice prioritizes execution speed and security during the critical launch period.
The Authority contract controls administrative access to protocol functions. Only authorized addresses can modify parameters such as epoch length, reward rates, or accepted bond assets.
Access Control#
The protocol uses a hierarchical access control model:
- Authority contract. The root of the permission system. Controls which addresses can perform administrative actions across all protocol contracts.
- Governor role. Can modify protocol parameters, add new bond markets, and manage treasury strategy deployments.
- Reward manager. The Distributor and BondDepository contracts are authorized to request SLOHM minting from the treasury.
- Reserve depositor. The BondDepository contract is authorized to deposit bonded assets into the treasury.
All permission assignments are on-chain and verifiable.
Risk Management#
The protocol's parameter design incorporates several protective mechanisms:
- Warmup period. Prevents flash-staking attacks by requiring newly staked positions to wait before earning rewards.
- Cooldown period. Discourages sudden mass unstaking that could destabilize the reserve.
- Bond vesting. Prevents immediate sell pressure from bond payouts by distributing SLOHM over time.
- Backing check. The treasury verifies sufficient reserve value before any new SLOHM is minted, including accounting for all pending bond payouts.
What's Next?#
See the development timeline and upcoming milestones in the Roadmap, or learn how the treasury generates yield in Reserve Strategies.