ELX is the future native utility and governance token of the Elixir ecosystem, powering consensus and allowing for holders to direct the future of the network.
With the eventual launch of mainnet, Elixir will achieve a fully decentralized state. This will include fully decentralized technical architecture, a functioning governance forum run by the ELX token, as well as multiple proposals to this forum to drive value towards the ELX token.
The overarching goal will be to 1. create effective governance mechanisms, 2. utilize ELX as a cryptoeconomic security incentive, and 3. make the platform completely decentralized and permissionless.
Node / Validator ELX Staking Requirements
The node and validator infrastructure that rests at the core of the network will be driven largely by ELX tokens. All validators and nodes will be required to stake a certain amount of ELX tokens in order to keep their infrastructure active and in good standing. Beyond simply creating demand for the ELX token, this also serves a larger role for the platform's overall security: it aligns incentives.
As broken down within the "Technical Architecture" section, nodes and validators ensure the security and proper function of the entire netwok. By requiring that these parties stake a large amount of ELX tokens, it ensures that their actions are all taken to better the network. Dishonest nodes and validators who attempt to hurt the network will in-turn be hurting the value of their own token holdings. Additionally, dishonest actions taken by these parties will lead the controller infrastructure to slash their staked token holdings, creating a very direct economic disincentive.
If these economic incentives aren't enough to ensure honesty and accuracy for all infrastructure providers, then the auditor and controller infrastructure will act as an arbiter of truth.
The Elixir ecosystem relies on the ELX token for security, making it a crucial component of the platform's architecture.
The ELX token is also the sole governance token within the ecosystem, granting holders and network participants the ability to propose and vote on proposals shaping future growth of the network.
Direction of Fees
Post-mainnet, ELX holders will have full governance rights, as well as control on the direction of any fees the network generates. Governance participants will have the autonomy to choose what these fees are, and where any value generated gets directed.