Fund Reserve for Re-Pegging

Funds for restoring the peg will come from two sources:

  1. Reserved $L2 Tokens: We will set aside a portion of $L2 tokens from the pre-minted supply, which can be exchanged for $zkBTC to facilitate burning.

  2. Minting and Redemption Fees: Although we plan to eliminate these fees in the future, we may postpone this cancellation after reducing the fee rate several times. The smart contract allocates all collected fees to the foundation. By then, the fee rate will be minimal, making future rewards insignificant to users. However, securing liquidity remains essential for the foundation.

In rare cases, sophisticated attacks may deplete the foundation's funds. Nonetheless, with future rewards anticipated, the foundation can finance damage control and continue to serve the community. The community will play a role in deciding how many fees to reserve for this purpose.

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