> ## Documentation Index
> Fetch the complete documentation index at: https://docs.elata.bio/llms.txt
> Use this file to discover all available pages before exploring further.

# How Elata Works

> Understanding the protocol architecture and value flows

## Architecture

Three layers, each doing one thing well.

<img src="https://mintcdn.com/elata/53SWjj4pyKwFhwHs/images/how-elata-works-light.svg?fit=max&auto=format&n=53SWjj4pyKwFhwHs&q=85&s=89ec8a458cec96ea20e1e0caa0c0deb8" alt="Elata architecture" className="block dark:hidden" width="1064" height="1587" data-path="images/how-elata-works-light.svg" />

<img src="https://mintcdn.com/elata/53SWjj4pyKwFhwHs/images/how-elata-works-dark.svg?fit=max&auto=format&n=53SWjj4pyKwFhwHs&q=85&s=59b869ede273ef76aeb574f77a73ddc8" alt="Elata architecture" className="hidden dark:block" width="1064" height="1587" data-path="images/how-elata-works-dark.svg" />

***

## Layer 1: Apps

Where users actually do stuff.

* **App Store** — browse and launch apps
* **App Tokens** — each app has its own ERC-20 token (1B supply)
* **Features** — tournaments with prize pools, NFT items that unlock things

### Layer 2: Economics

Where money moves.

| Piece                   | Job                                   |
| ----------------------- | ------------------------------------- |
| **Bonding Curves**      | Set token prices based on supply sold |
| **Staking Vaults**      | Deposit tokens, earn fees             |
| **Fee Router**          | Collect fees from all sources         |
| **Rewards Distributor** | Split fees 70/15/15                   |

### Layer 3: Governance

Where decisions happen.

* **veELTA** — lock ELTA for voting power (longer lock = bigger boost)
* **Governor** — on-chain proposals and voting
* **LotPool** — XP-weighted funding for new projects
* **Timelock** — 48-hour delay before execution

***

## Where Fees Come From

```mermaid theme={null}
graph LR
    subgraph "Fee Sources"
        A[Trading Fees 1%]
        B[App Launch Fees]
        C[Tournament Fees]
    end
    
    subgraph "Distribution"
        D[Rewards Distributor]
    end
    
    subgraph "Recipients"
        E[App Stakers 70%]
        F[veELTA Holders 15%]
        G[Treasury 15%]
    end
    
    A --> D
    B --> D
    C --> D
    D --> E
    D --> F
    D --> G
```

Three sources:

1. **Trading (1%)** — every buy/sell on a bonding curve
2. **Launches (10 ELTA)** — flat fee per new app
3. **Tournaments (2.5%)** — cut of prize pools

### Where Fees Go

| Who                | Cut | Why                                          |
| ------------------ | --- | -------------------------------------------- |
| **App stakers**    | 70% | Reward people holding and staking app tokens |
| **veELTA holders** | 15% | Reward long-term ELTA lockers                |
| **Treasury**       | 15% | Fund development, grants, ops                |

***

## App Lifecycle

### Launch

Developer pays **110 ELTA**:

* 100 ELTA → seeds the bonding curve
* 10 ELTA → treasury

Gets:

* 1 billion tokens total
* 50% auto-staked (earning fees immediately)
* 50% on the bonding curve for sale

### Raising

* Users buy from the curve
* Price rises with each purchase
* 1% fee on every trade
* XP holders get 6-hour head start

### Graduation

Curve hits **42,000 ELTA** collected:

* Liquidity auto-deploys to Uniswap
* LP tokens locked 2 years (no rug pulls)
* Free market trading begins

### Live

Post-graduation:

* Trades on DEX
* Staking rewards keep flowing
* Creator can add tournaments, items
* Token holders can organize around the app

***

## Who Does What

| Role              | Does                         | Earns                              |
| ----------------- | ---------------------------- | ---------------------------------- |
| **Builders**      | Launch apps                  | 50% of tokens (auto-staked) + fees |
| **Token holders** | Buy/stake app tokens         | 70% of trading fees                |
| **ELTA lockers**  | Lock ELTA as veELTA          | 15% of all protocol fees + votes   |
| **Users**         | Play apps, enter tournaments | XP, early access, prizes           |

***

## Security

| Protection              | How                                                            |
| ----------------------- | -------------------------------------------------------------- |
| **LP locking**          | Liquidity locked 2 years at graduation. Can't rug.             |
| **Immutable contracts** | No admin keys. Rules can't change post-deploy.                 |
| **Timelock**            | 48-hour delay on governance actions.                           |
| **XP early access**     | 6-hour window for XP holders before public launch. Stops bots. |

***

## Next

<CardGroup cols={2}>
  <Card title="Tokenomics" icon="chart-pie" iconType="light" href="/learn/tokenomics">
    ELTA supply, distribution, veELTA math
  </Card>

  <Card title="Revenue Model" icon="money-bill" iconType="light" href="/learn/revenue-model">
    Fee mechanics and yield calculations
  </Card>
</CardGroup>