Protocol Protection

The security of pledged assets is ensured through various measures. Firstly, the neutrality of assets is guaranteed by locking the entire pledged asset on the original chain and storing its ownership in the smart contract. Changes in asset ownership within multi-signature addresses are secured by numerous special validators using threshold multi-signature sharing technology, eliminating any potential single third-party control. Secondly, the multi-signature address employs an asset mechanism where special validators are randomly selected through the EtherKEY protocol's algorithm. Validators do not have knowledge of each other, significantly reducing the possibility of collusion. Moreover, asset protection is dynamically replaced within a specific period to ensure security. Thirdly, the system is designed with the possibility of punishment for validators who engage in any attacks or illegal behavior during their participation in private key signature calculation and storage. In such cases, the community can punish the validators, and the value of the pledge is proportional to the value of the asset that can be handled. By combining multiple conditions, the EtherKEY protocol system can effectively pledge a certain level of risk, and the asset relationship in the pledge can be guaranteed safe under the assumption that most people are honest.

To realize decentralization and sustainable development of the protocol, a portion of the system's revenue will be sent to the treasury to support future development and community work. The sources of the treasury mainly come from inflation rewards, liquidity fees, transaction fees, deposit fees, etc. The use of the treasury will be approved through a proposal system, and the approval status of the proposal will be determined by a vote from coin holders. The EtherKEY protocol guarantees a minimum of 50% of the treasury.