Governance

Elata is functioning as a Decentralized Autonomous Organization (DAO) and does not have a CEO or Board of Directors. Its members govern the organization through voting on governance proposals using $ELTA, our governance token. The token utilized for governance within Elata is the ERC-20 token, $ELTA. A person or organization verifiably holding at least one governance token becomes a member automatically.

Elata employs a democratic governance model where each token holder's voting power is directly proportional to their holdings. Specifically, each $ELTA token represents one vote, ensuring that governance is distributed among all token holders based on their stake in the DAO. This one token, one vote system is guided by insights from our stewards and core teams to facilitate a community-driven approach where every token holder's voice is heard, proportional to their commitment to the DAO.

Our governance process is outlined below.

Proposals

Elata finances projects based on project proposals that are submitted by individuals and organizations in addition to being reviewed by relevant Elata teams for scientific, clinical, and business relevance, and proposed for funding. Once funding is released, the Development team monitors the project and offers assistance to its implementation based on expertise.

Elata leverages Snapshot, a leading blockchain voting platform, to facilitate on-chain voting. Snapshot facilitates all votes and proposals, providing a clear and verifiable record of governance decisions. Additionally, Elata may utilize third-party audits and community oversight to further ensure the integrity of the voting process.

Voting

The voting process for proposals consists of two stages:

Stage 1 - Initial Voting

Proposals are first posted in the "governance forum" channel on the Elata Biosciences Discord server. To advance to the next stage, a proposal must:

• Remain open for 2 days.

• Receive a majority of positive votes.

Stage 2 - Snapshot Vote

If a proposal passes the initial voting stage, it is then submitted to an off-chain decentralized voting platform known as Snapshot. To be validated on Snapshot, a proposal must:

• Achieve a quorum of 15% of circulating tokens.

• Secure a majority of positive votes.

• Remain open for 4 days.

Once a proposal successfully passes both stages, Elata will execute it.

Spinouts and commercialization

In essence, Elata is the engine that supports, finances, and ultimately is a studio for initiatives (spinout) dedicated to the eventual monetization of new products such as medicines, TechBio platforms, proprietary data rights, and miscellaneous other monetizable licensing formats.

Creating such initiatives will provide additional opportunities to raise funds and to join potential partners in a joint venture and de-risk their investment.

By using a simplified corporate governance mechanism with an elected CEO, these initiatives can avoid many of the coordination problems common in decentralized entities while retaining the advantage of a strong board and ultimate control. By focusing on monetizing cash flows, Elata reaches much larger potential markets of funders, ensures a stream of a variety of potential cash flows, and more directly focuses on monetizing new compounds and making them available for consumers.