> For the complete documentation index, see [llms.txt](https://hints.gitbook.io/stav/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hints.gitbook.io/stav/governance/elements-of-governance-eog.md).

# Elements of Governance (EoG)

Variables of scarcity dapp.

## Elements of Governance (EoG): Are references of value fields, operations, functions, literal values, or other variables consequent to formulas formed/used in our **Token Mechanics**.

* **Mf ➝** [**Minting Formula**](/stav/governance/elements-of-governance-eog.md#minting-formulae-mf)
* **Ppy ➝** [**Periodic-lock Per Year**](/stav/governance/elements-of-governance-eog.md#periodic-lock-per-year-ppy)
* **Ed ➝** [**Entry Days**](/stav/roadmap.md#find-roadmap-details-here)
* **Sf ➝** [**Scarcity Factor**](/stav/governance/elements-of-governance-eog.md#scarcity-factor-sf)
* **PL-Unit ➝** [**Proof of Lock Function**](#proof-of-lock-pl-function) 
* **Dev's Incent ➝** [**Developer Incentive.**](#devs-incentive) 

### **Minting Formulae (MF)**

> *<mark style="color:red;">**Minting Formulae (MF)**</mark> is the scarcity formulae that collateralize a VsT (Verified Scarcity Token*) *via the burn and lock function to mint STAV coin* based on stated Ppy and Sf (Scarcity factor).

{% hint style="info" %} <mark style="color:red;">**MF = {(Dt\*Mr1)/SPpy}\*{Cvst\*0.1}**</mark>&#x20;

{% code title="Variables of Minting formulae" overflow="wrap" %}

```
Minting Formulae = {(Dt * Mr1)/SPpy}*{Csnt*0.01}
Where;
Dt  = Daily Timestamps = 86,400,000 Millisecs
Mr1 = Initial Minting Rate = 0.00000001 STAV
Cvst  = Collateral of Verified Scarcity Token (e.g. FAAM)
SPpy = Scarcity Periodic Per Year = 365/Ed
Ed  = Entry Days (15 - 90 days)
```

{% endcode %}
{% endhint %}

{% hint style="info" %}
**Minting RULE #1: Minting Rate (Mr) reduces by 10% for every 1,000,000 STAV minted.**

*`This mean that contract will update for every 1 million STAV token minted with an adjusted Minting Rate (Mr) per Milli-seconds.`*

<mark style="color:red;">`Mr.New (Mr2) = Mr1 - {10% * (Mr1)}`</mark>

<mark style="color:red;">**`Example:`**</mark>`If initial Minting Rate (Mr1) is 0.00000001 STAV/millisecs. After the first 1 million STAV is minted, New Minting Rate (Mr2) will be base on formulae above.`

<mark style="color:red;">**`Mr2`**</mark> <mark style="color:red;">**`= 0.00000001 - (0.000000001)`**</mark>

<mark style="color:red;">**`Mr2 = 0.000000009`**</mark>

***Note:*** Minting rates is measure in daily timestamps of 86,400,000 milli-secs per day.
{% endhint %}

### Scarcity Period Per Year (SPpy)

{% hint style="info" %}
*<mark style="color:red;">**Scarcity Period Per Year (SPpy)**</mark>* *is the yearly duration of lock for the collateral asset per entry days.*

<mark style="color:red;">Ppy = 365/Ed</mark>\
*Note:* Contract can be invoked within Entry Days (15 - 90 days).
{% endhint %}

### Entry Days (Ed)

{% hint style="info" %}
*<mark style="color:red;">**Entry Days (Ed)**</mark> is the VsT locking period in timestamps, measured in days.*
{% endhint %}

### Scarcity Factor (Sf)

{% hint style="info" %}
*<mark style="color:red;">**Scarcity Factor (Sf)**</mark> is a governance function that measures the unlocking period in timestamps. It's measured in entry days after locked duration (Ed).*

<mark style="color:red;">i.e. Sf = Ed + 1/2Ed</mark>\
***Note:** Locked VsT are claimable during <mark style="color:red;">UNLOCKING</mark> period.*\
*Check the* [***minter's calc-2***](#https-staava.network-calcelements-of-governance-eog)
{% endhint %}

### **Proof of Lock (PL) Function**

<mark style="color:red;">PL-Unit</mark> ➝ <mark style="color:red;">Proof of Lock (PL)</mark> is not a token. It is a governance function that indicates evidence for the creation of scarcity. It's given to the users who execute the smart-contract as against the unique native currency (STAAVA) with defined privileges.&#x20;

> *<mark style="color:red;">**PL-Unit is the Proof of Lock (PL) function, scripted to BURN 25%  of the VsT and scripted  to LOCK 75% of VsT (e.g. FAAM) against its ENTRY balance, while minting STAV upon the scripted dapp invocation of the scarcity smart contract. PL-Unit cannot be traded, transferred, But can be burnt  only on dApp conditions...**</mark>*
>
> The amount of PL-Unit deposited represents the user's 75% committal of the peg currency via dApp invocation. Until PL-Unit is burnt, the committal asset can not be withdraw out of dApp contract.

{% hint style="info" %}
*<mark style="color:orange;">**Example:**</mark>**&#x20;A user locks 10,000 FAAM for a defined SPpy of 15 days entry time,*** the contract shall calculate 75% of the equivalent amount in PL-Unit as 7,500 PL-Unit <mark style="color:red;">(to be locked)</mark>, while burning the remaining 25% instantly, and minting STAV coins according to minting formulae. 75% (7,500 FAAM) which is represented as PL-Unit for the stated SPpy is locked with scarcity factor.

**Summary of such invocation shall mean the following:**

* ***`2,500 FAAM`**`is instantly burnt as deflationary measure of VsT.`*
* ***`7,500 PL-Unit`**`is deposited as Proof of Lock.`*
* **3.55068493*****`STAV`**`shall mint to wallet as scarcity incentive.`*
* ***`7,500 FAAM`**`unlocks during scarcity factor period.`*
* ***`5%`**` ``of minted STAAV is deducted to Dev-team`*
  {% endhint %}

### Dev's Incentive

{% hint style="info" %}
**Developer Incentive** *is a 5% percent compensation from every mint that is subtracted to the Staava Development Team.*

*<mark style="color:red;">From the example above, If a user is minting</mark> <mark style="color:red;"></mark><mark style="color:red;">**3.55068493 STAV**</mark> <mark style="color:red;"></mark><mark style="color:red;">via the contract, At the instance of mint, 5</mark><mark style="color:red;">**% (i.e. 0.177534245 STAV)**</mark> <mark style="color:red;"></mark><mark style="color:red;">is deducted to Dev-incentive wallet.</mark>*
{% endhint %}