The Vault Contract

The Vault serves as the fund holder contract for the KNOWLEDGE protocol. It functions as a repository for all the collateral deposited during the minting of KNOWLEDGE tokens and the stakes placed on the surplus to support the protocol.

The Vault is divided into two sections: Treasury and Surplus Reserve.

Treasury

• This section of the Vault comprises the collateral deposited by organizations to mint KNOWLEDGE tokens.

• The Treasury represents the collateral supporting the KNOWLEDGE token, and the total value locked here (in Euros) determines the price of KNOWLEDGE.

Surplus Reserve

• The Surplus section of the Vault comprises collateral staked by the community to support the KNOWLEDGE protocol, during Inflationary Movement.

• Staking collateral into the Surplus grants governance rights to the owner of the position.

• All staked positions earn rewards proportional to the collateral used during Inflationary Movement of the protocol. The rewards generated corresponding to a position can be redeemed by the position holder directly through the Vault after the Inflationary Movement ends.

• Staked positions can be transferred and traded through the KNOWLEDGE Marketplace.

• The position owner can redeem their position at any time to retrieve the staked collateral, also dropping out their governance rights.

• Partial liquidation of the position in the Surplus Reserve is also possible through the Vault.

The Vault Contract also supports functionalities for balancing the price of the Knowledge Token, providing surplus to the protocol and also stake the surplus position to earn extra rewards.