diff --git a/docs/legacy/resources/whitepaper.md b/docs/legacy/resources/whitepaper.md new file mode 100644 index 0000000..c4e7ff9 --- /dev/null +++ b/docs/legacy/resources/whitepaper.md @@ -0,0 +1,259 @@ +# Yellow Network ($YELLOW) White Paper + +**In accordance with Title II of Regulation (EU) 2023/1114 (MiCA)** + +--- + +**Date of notification:** 2025-10-13 + +**Statement in accordance with Article 6(3) of Regulation (EU) 2023/1114:** +This crypto-asset white paper has not been approved by any competent authority in any Member State of the European Union. The offeror of the crypto-asset is solely responsible for the content of this crypto-asset white paper. + +**Compliance statement in accordance with Article 6(6) of Regulation (EU) 2023/1114:** +This crypto-asset white paper complies with Title II of Regulation (EU) 2023/1114 and, to the best of the knowledge of the management body, the information presented in the crypto-asset white paper is fair, clear and not misleading and the crypto-asset white paper makes no omission likely to affect its import. + +**Statement in accordance with Article 6(5), points (a), (b), (c) of Regulation (EU) 2023/1114:** +The crypto-asset referred to in this white paper may lose its value in part or in full, may not always be transferable and may not be liquid. + +**Statement in accordance with Article 6(5), point (d) of Regulation (EU) 2023/1114:** +The utility token referred to in this white paper may not be exchangeable against the good or service promised in the crypto-asset white paper, especially in the case of a failure or discontinuation of the crypto-asset project. + +**Statement in accordance with Article 6(5), points (e) and (f) of Regulation (EU) 2023/1114:** +The crypto-asset referred to in this white paper is not covered by the investor compensation schemes under Directive 97/9/EC of the European Parliament and of the Council. The crypto-asset referred to in this white paper is not covered by the deposit guarantee schemes under Directive 2014/49/EU of the European Parliament and of the Council. + +--- + +## Summary + +**Warning in accordance with Article 6(7), second subparagraph of Regulation (EU) 2023/1114:** +This summary should be read as an introduction to the crypto-asset white paper. The prospective holder should base any decision to purchase this crypto-asset on the content of the crypto-asset white paper as a whole and not on the summary alone. The admission to trading of this crypto-asset does not constitute an offer or solicitation to purchase financial instruments and any such offer or solicitation can be made only by means of a prospectus or other offer documents pursuant to the applicable national law. This crypto-asset white paper does not constitute a prospectus as referred to in Regulation (EU) 2017/1129. + +### Characteristics of the Crypto-Asset +Yellow Network is a decentralized Layer-3 clearing network designed to address the critical issues of liquidity fragmentation, high costs, and security risks prevalent in the digital asset trading landscape. By creating a blockchain-agnostic overlay mesh network, Yellow Network connects brokers, exchanges, and trading firms, enabling them to aggregate liquidity and execute high-frequency trades securely and efficiently. + +The **$YELLOW token** is the native ERC-20 utility token of the network. Its primary purpose is to grant access to the network's services and secure its operations. The rights attached to the token are purely functional: it is used for locking as access collateral to open trading channels, paying clearing fees for transaction settlement, and paying for blockchain gas fees across multiple chains via ERC-4337 Account Abstraction. The rights are exercised by interacting with the Yellow Network's smart contracts. These rights and obligations are uniform for all holders and are not subject to modification without a network-wide consensus among participants. + +### Goods or Services +The $YELLOW token provides access to the services of the **Yellow Clearnet**, a Layer-3 virtual ledger infrastructure. This service allows participants (brokers, exchanges, trading firms) to connect to a global, decentralized liquidity network. By using the service, participants can: +* Aggregate order books from multiple venues. +* Execute high-frequency trades with near-instant off-chain clearing. +* Settle net liabilities periodically on-chain, reducing costs and latency. +* Access liquidity across different blockchains without relying on risky cross-chain bridges. +The token is essential for operating a node and participating in the network's clearing and settlement processes, making it a key component for any entity wishing to leverage the Yellow Network infrastructure. + +### Key Information About the Offer +Detailed information regarding the public offer of $YELLOW tokens, including the issue price, subscription terms, total number of offered assets, and the various phases of the offer, will be published prior to the commencement of the public sale. + +--- + +## Part I - Information on Risks + +### 1.1 Offer-Related Risks +The value of the $YELLOW token is subject to market demand and the overall success of the Yellow Network project. There is no guarantee of liquidity or a stable market price. The offering may not reach its fundraising targets, which could impact the project's development timeline and ability to execute its roadmap. + +### 1.2 Issuer-Related Risks +The Layer-3 Foundation (the Issuer) is a non-profit entity based in the Cayman Islands. Its ability to support the Yellow Network depends on its effective management of the ecosystem fund and its ability to foster a vibrant community of developers and participants. Changes in the regulatory environment in its jurisdiction of incorporation or in the jurisdictions of its operating entities could impact its operations and ability to support the network. + +### 1.3 Crypto-Assets-Related Risks +The value of the $YELLOW token, like all crypto-assets, is subject to extreme volatility and market fluctuations driven by technical, economic, and regulatory factors. The legal and regulatory landscape for digital assets is uncertain and constantly evolving across jurisdictions. Future regulations could negatively impact the operation of the network, the utility of the $YELLOW token, or the ability of participants to use the services, potentially diminishing the token's value. + +### 1.4 Project Implementation-Related Risks +The success of Yellow Network is dependent on the successful development and implementation of its complex, novel technology as described in the roadmap. Delays, bugs, or failures in the development of the Clearnet, state channel protocol, or NeoDAX application could adversely impact the project. Furthermore, the value and utility of the network are heavily dependent on achieving a critical mass of participants (brokers, exchanges, liquidity providers) to create a robust network effect. Failure to achieve this adoption could limit the project's success and the token's utility. + +### 1.5 Technology-Related Risks +The project relies on advanced and complex technologies, including state channels, smart contracts, and a peer-to-peer networking layer. There is an inherent risk of undiscovered vulnerabilities or design flaws that could be exploited by malicious actors, potentially leading to a loss of funds for participants or disruption of the network. While the technology has undergone professional audits, no technology can be guaranteed to be 100% secure. + +### 1.6 Liquidity Risks +While the Yellow Treasury Vault aims to provide liquidity on decentralized exchanges, there is no guarantee that sufficient trading volume or liquidity will exist for the $YELLOW token on any exchange or trading platform. Token holders may experience difficulty selling tokens or may only be able to sell at unfavorable prices. The lack of liquidity could significantly impact the market price of the token and holders' ability to use the token for its intended utilities if they need to acquire additional tokens. + +### 1.7 Smart Contract Risks +The $YELLOW token and the Yellow Network infrastructure rely on smart contracts deployed on multiple blockchains. Despite professional audits, smart contracts are complex software that may contain bugs, vulnerabilities, or design flaws that could be exploited by malicious actors. Such exploits could result in the loss of tokens, inability to access network services, or disruption of network operations. Additionally, the bridge contracts used to deploy $YELLOW across multiple chains introduce additional smart contract risk surfaces. + +### 1.8 Regulatory Classification Risk +While this white paper classifies the $YELLOW token as a utility token under MiCA, regulatory authorities in the European Union or other jurisdictions may take a different view. Changes in regulatory interpretation or classification of the token could result in additional compliance requirements, restrictions on the token's transferability or utility, or could render the token's intended functionalities non-compliant with applicable regulations. Such a reclassification could materially and adversely affect the value and utility of the token. + +### 1.9 Mitigation Measures +To mitigate these risks, the project has taken several measures. The core smart contracts and underlying technology have undergone a rigorous security audit by Hacken, achieving a top score of 10/10. The network's non-custodial architecture and the use of on-chain collateralization in state channels are designed to minimize counterparty risk. The Yellow Treasury Vault's mechanism of using collected fees to provide liquidity on decentralized exchanges is intended to ensure token availability and a fair market price, not to artificially stabilize or guarantee the token's value. The project's phased rollout, starting with a Canary testnet, is designed to identify and fix issues in a controlled environment before the mainnet launch. + +--- + +## Part A - Information about the Offeror + +* **Name:** Layer3 FinTech Ltd. +* **Legal Form:** Limited Company +* **Registered Address:** [Insert complete registered address of Layer3 FinTech Ltd.] +* **Website:** https://www.yellow.org +* **Contact Email:** [Insert regulatory contact email] +* **Parent Company:** Layer-3 Foundation +* **Business Activity:** Layer3 FinTech Ltd. is a technology development company focused on building and maintaining the software components of the Yellow Network. It acts as a key contributor to the open-source ecosystem governed by the Layer-3 Foundation and serves as the offeror of the $YELLOW token in the European Union. + +### Members of the Management Body +* **Alexis Yellow, Executive Chairman:** A veteran of the European Space Center and co-founder of the crypto market maker GSR, bringing deep expertise in both technology and financial markets. +* **Louis Bellet, Co-Founder and Chief Architect:** A software architect and serial entrepreneur in the fintech and crypto spaces, founder of Openware, a leading provider of crypto exchange software. For the past ten years, Louis has been hands-on in the crypto industry building infrastructure for digital asset trading. +* **Camille Meulien, CTO, Architect:** A software architect with over 20 years of experience in FinTech security, distributed systems, Big Data, and high-traffic systems. +* **Hongtao J, CTO, Ecosystem:** Former Head of Exchange Tech at BybitX and m2.com, expert in scaling, secure, real-time financial infrastructure. +* **Alessio Treglia, CTO, Protocol:** Ex CTO at Tendermint, the company that created the core infrastructure that powers the Cosmos ecosystem, including Tendermint Core and the Cosmos SDK. +* **Bakhtiyar Mamedov, CFO:** A financial expert with over 18 years of experience at PwC, specializing in banking, treasury management, and financial process implementation for the blockchain industry. +* **Shyla Khan, CMO:** Veteran Web3 marketer who has shaped global strategy and storytelling for Polkadot, Kusama and DappRadar, bringing clarity to complex tech across markets. +* **Neil Meintjes, COO:** Web3 professional with over 25 years in the ITC space, launched over 50 Gaming and DeFi projects. + +--- + +## Part B - Information about the Issuer + +* **Issuer different from offeror:** Yes +* **Name:** Layer-3 Foundation +* **Legal Form:** Non-profit Foundation +* **Registered Address:** [Insert complete registered address in Cayman Islands, including building/suite number, street, city, postal code] +* **Date of Incorporation:** [Insert date] +* **Registration Number:** [Insert Cayman Islands company registration number] +* **Website:** https://www.yellow.org +* **Relationship to Offeror:** The Layer-3 Foundation is the parent entity of Layer3 FinTech Ltd. and the issuer of the $YELLOW token. +* **Business Activity:** The Layer-3 Foundation is a non-profit entity responsible for issuing the $YELLOW token and overseeing the long-term development and decentralization of the Yellow Network ecosystem. It manages the community and ecosystem funds to promote growth and adoption. + +--- + +## Part C - Information about the Public Offer and/or Admission to Trading + +* **Countries where the offer is made:** [List EU Member States where the public offer will be conducted] +* **Admission to trading on crypto-asset trading platforms:** + - The offeror intends to seek admission to trading on the following crypto-asset trading platforms: [List platforms, if known, or state "To be determined and announced prior to token distribution"] + - Expected date of admission to trading: [Insert date or "Within [X] days following the close of the public offer"] +* **Approvals:** This crypto-asset white paper has not been approved by any competent authority in any Member State of the European Union. +* **Applicable National Law:** The offer is subject to [Insert applicable law, e.g., "the laws of [jurisdiction]"] +* **Competent Authority for the Offeror:** [Insert name and contact details of the relevant national competent authority] + +--- + +## Part D - Information about the Crypto-Asset Project + +* **Crypto-asset project name:** Yellow Network +* **Crypto-assets name:** YELLOW +* **Abbreviation:** $YELLOW +* **Total Maximum Supply:** 10,000,000,000 $YELLOW tokens +* **Initial Circulating Supply:** [Insert number of tokens that will be in circulation immediately following the public offer and initial distribution] +* **Token Standard:** ERC-20 (Ethereum and EVM-compatible chains) +* **Primary Blockchain:** Ethereum Mainnet +* **Contract Address:** [To be published prior to token distribution] +* **Crypto-asset project description:** + Yellow Network is a decentralized Layer-3 clearing network built to solve the core problems of market and liquidity fragmentation in the digital asset space. The current ecosystem, with its hundreds of blockchains and thousands of tokens, has led to liquidity being trapped in isolated silos (CEXs, DEXs on different chains). This results in poor price discovery, high slippage, and significant security risks associated with cross-chain bridges. + Yellow Network provides a solution by creating a blockchain-agnostic overlay mesh network that connects brokers, exchanges, and trading firms. This allows participants to aggregate liquidity and execute high-frequency trades securely and efficiently. The core of the network is **Yellow Clearnet**, a virtual ledger infrastructure that uses state channel technology for near-instant off-chain transaction clearing, with periodic on-chain settlement. This architecture decouples trading from settlement, enabling massive scalability and making true high-frequency trading possible in a decentralized environment. +* **Utility Token Classification:** This project concerns utility tokens. The $YELLOW token is a utility token as defined under MiCA, as it provides access to the goods and services of the Yellow Network. +* **Key Features of Goods/Services for Utility Token Projects:** + The primary service is access to the Yellow Clearnet infrastructure. By locking $YELLOW tokens, participants can run a Clearnode and open state channels, which grants them access to the following key features: + * **Unified Liquidity:** Connect to a peer-to-peer mesh network to share order books and access a global pool of liquidity, enabling tighter spreads and deeper markets. + * **High-Frequency Trading:** Execute and clear trades off-chain in near real-time, allowing for a throughput of billions of transactions per day. + * **Enhanced Security:** Utilize a non-custodial architecture where participants always control their own assets, with off-chain liabilities secured by on-chain collateral to minimize counterparty risk. + * **Blockchain Agnostic Trading:** Trade assets from different blockchain ecosystems without the need for risky cross-chain bridges. +* **Plans for the token (Roadmap):** + | Period | Milestones | + |-------------|--------------------------------------------------------------------------------------------------------| + | **Q1-Q2 2024** | - Launch Yellow Smart Account (ERC-4337)
- Rollout of Yellow Terminal & Canary Testnet
- Onboarding of Initial Builders & Locking Campaigns
- Linea Mainnet Integration | + | **Q3-Q4 2024** | - Launch of Yellow Network Telegram app and Yellow Vault
- Yellow Locking Campaign Season 1 & 2
- Adding support of 6 EVM chains
- Expansion of Builder Program & Hackathons
- Instant cross-chain trading feature | + | **2025** | - Launch of Yellow Clearnet (Layer-3 Mainnet)
- Release of SDK for builders
- State-channels smart-contract deployment
- Clearnode golang microservice for off-chain operations
- NeoDAX SPOT release built on Clearnet | + | **Q1-Q2 2026** | - NeoDAX SPOT trading between brokers enabled
- Expansion of Brokerage Ecosystem
- NeoDAX support for Perpetual contract trading
- Advanced orders and Risk Neutral Broker Dealer market making | +* **Resource Allocation:** + * **Community & Ecosystem (55% - 5,500,000,000 $YELLOW):** + - 30% (3,000,000,000 $YELLOW) for the Community Fund to support ecosystem projects, allocated based on community proposals + - 25% (2,500,000,000 $YELLOW) for growth-hacking and trading rewards to incentivize adoption and network participation + * **Investors (20% - 2,000,000,000 $YELLOW):** Proportional vesting over a three-year period + * **Team & Founders (10% - 1,000,000,000 $YELLOW):** Proportional vesting over a five-year period to align long-term interests with network success + * **Treasury & Liquidity (15% - 1,500,000,000 $YELLOW):** + - 12.5% (1,250,000,000 $YELLOW) for the Treasury for future growth and operational expenses + - 2.5% (250,000,000 $YELLOW) for initial liquidity provision on decentralized exchanges + +--- + +## Part E - Information about the Offer + +* **Offer Type:** [Specify: Public offer to retail / Offer to qualified investors / Both] +* **Offering Period:** The public offer will commence on [Insert date] and conclude on [Insert date], unless extended or terminated early. +* **Issue Price:** [Insert price per token in EUR and/or other reference currency] +* **Minimum/Maximum Subscription:** + - Minimum investment per subscriber: [Insert amount] + - Maximum investment per subscriber (if any): [Insert amount or "None"] +* **Total Number of Crypto-Assets Offered:** [Insert number] $YELLOW tokens +* **Total Amount to be Raised:** + - Target amount: [Insert amount in EUR] + - Maximum amount: [Insert amount in EUR] + - Minimum threshold for offer success: [Insert amount in EUR or "None"] +* **Subscription Process:** [Describe how potential purchasers can subscribe, including technical requirements, KYC/AML procedures, accepted payment methods] +* **Allocation Method:** [Describe: First-come-first-served / Pro-rata allocation / Other method] +* **Costs and Taxes:** + - No direct subscription fees are charged to purchasers + - Potential purchasers are responsible for any blockchain transaction fees (gas fees) required to receive tokens + - Tax treatment will depend on the jurisdiction of each purchaser; prospective holders should consult tax advisors +* **Lock-up Periods:** Tokens acquired during the public offer will not be subject to lock-up restrictions and will be immediately transferable upon distribution. +* **Distribution Timeline:** Tokens will be distributed to purchasers' wallets within [X] business days following the close of the offering period. +* **Right of Withdrawal:** In accordance with Article 14 of MiCA, purchasers have the right to withdraw their offer to purchase within [X] days from [specify trigger event]. + +--- + +## Part F - Information about the Crypto-Assets + +* **Crypto-Asset Type:** Utility Token. +* **Crypto-Asset Functionality:** The $YELLOW token is an integral component of the Yellow Network, designed to facilitate its core operations and ensure its security. Its functionalities are: + 1. **Network Access & Security:** To become a participant (e.g., a broker) and open trading channels, a minimum amount of $YELLOW tokens must be locked as access collateral in a smart contract. The amount of tokens locked determines the number of channels a participant can open. This collateral serves as a security deposit that can be slashed in the event of malicious behavior or failure to meet settlement obligations, thereby securing the network. + 2. **Clearing Fee Payments:** Fees for settling net liabilities on the network are paid exclusively in $YELLOW. This creates a constant, organic demand for the token that is directly proportional to the trading volume and activity on the network. + 3. **Gas Fee Abstraction:** Through the implementation of ERC-4337 Account Abstraction (Yellow Smart Account), users can pay transaction fees for any supported blockchain using $YELLOW tokens. This simplifies the user experience, as they do not need to hold the native tokens of multiple blockchains to pay for gas. + 4. **Governance:** Active network participants who lock $YELLOW tokens in their collateral insurance fund gain proportional on-chain voting rights. These rights are limited to the administration of the network, such as voting for auditors for the Online Dispute Resolution Center (ODRC) and approving DEX liquidity expansions. These rights do not grant any entitlement to a share of the network's revenues or profits. +* **Minimum Token Requirements for Network Participation:** + - To operate as a broker and open 4 broker-to-broker trading channels, participants must lock a minimum of 250,000 $YELLOW tokens + - The number of channels available to a participant scales with the amount of $YELLOW locked + - Tokens locked as collateral remain the property of the participant and can be unlocked upon closing trading channels, subject to any pending settlements or disputes +* **Slashing Mechanism:** In the event of malicious behavior, failure to meet settlement obligations within the Time-to-Settle (TTS) period, or loss in the Online Dispute Resolution Center (ODRC), a participant's locked collateral may be partially or fully slashed. Slashed tokens are transferred to the Yellow Treasury Vault. +* **Planned Application of Functionalities:** The functionalities will be progressively rolled out following the mainnet launch as per the project roadmap. The Yellow Smart Account is planned for 2024, with the full clearing fee and governance mechanisms becoming active with the launch of the Yellow Clearnet mainnet in 2025. + +--- + +## Part G - Information on the Rights and Obligations + +* **Purchaser Rights and Obligations:** Purchasers of the $YELLOW token have the right to use it for its intended utilities within the Yellow Network ecosystem as described above. There is no right to redemption or any claim on the assets of the Issuer or the Offeror. Token holders are obligated to manage their own wallets and private keys securely. +* **Issuer Retained Crypto-Assets:** 10% of the total supply (1,000,000,000 $YELLOW) is allocated to the founders and team, subject to a 5-year vesting schedule. 12.5% (1,250,000,000 $YELLOW) is allocated to the Treasury for future growth and operational expenses. +* **Utility Token Classification:** The offer concerns utility tokens. +* **Token Value Protection Schemes Description:** The Yellow Network does not employ any mechanism intended to stabilize or maintain the value of the $YELLOW token. There is no reserve of assets backing the token's value in the manner of an Asset-Referenced Token under Article 3(1)(3) of MiCA. + + The Yellow Treasury Vault is governed by a DAO composed of active network participants who have locked $YELLOW tokens in their collateral insurance fund. The Vault collects clearing fees denominated in various crypto-assets (including WBTC, WETH, ETH, USDT, USDC, and other ERC-20 tokens) from network trading operations. These collected fees are operational revenues of the network infrastructure. + + The DAO may vote to use a portion of these collected crypto-assets to provide liquidity on decentralized exchanges (such as adding liquidity to a YELLOW/ETH pool on Uniswap V3 or similar platforms). The sole purpose of this liquidity provision is to ensure sufficient market depth and availability of the $YELLOW token for users who need it to access network services. This activity is not intended to, and does not purport to, maintain a stable value for $YELLOW. The token's market price remains entirely subject to supply and demand dynamics and market forces. Prospective holders should not interpret the Treasury Vault's activities as any form of value guarantee or price stabilization mechanism. +* **Compensation Schemes:** There are no compensation or reimbursement schemes in place for token holders in case of loss of value or other damages. + +--- + +## Part H - Information on the Underlying Technology + +* **Distributed Ledger Technology:** The $YELLOW token is an ERC-20 token deployed on the Ethereum blockchain and will be bridged to other EVM-compatible chains, including Base, Arbitrum, Linea, BNB Chain, and Polygon. The Yellow Network itself is a Layer-3 overlay network that is blockchain-agnostic and interacts with these underlying blockchains for final settlement. +* **Technology Used:** The core technology is **Yellow Clearnet**, a virtual ledger infrastructure built with state channels. This system is composed of: + * **ClearSync Protocol:** A set of smart contracts that manage the locking of collateral and the rules for state channel operation. + * **Clearnodes:** Go-lang microservices that participants run to connect to the peer-to-peer network, manage off-chain communication and state updates, and interface with blockchains for settlement. + * **Application Layer:** Applications like **NeoDAX** are built on top of the Clearnet, providing user-facing trading venues and tools. +* **Consensus Mechanism:** The network relies on the consensus mechanisms of the underlying blockchains for on-chain settlement (e.g., Proof-of-Stake for Ethereum). Off-chain state updates within a channel are not subject to a global consensus mechanism; instead, they are bilaterally agreed upon and cryptographically signed by the participants involved in that specific channel. +* **Incentive Mechanisms and Applicable Fees:** The primary incentive mechanism is the ability to participate in a global liquidity network. Clearing fees, paid in $YELLOW, are charged on every settlement to fund the Treasury Vault and sustain the ecosystem. +* **Audit:** The project's smart contracts have undergone a security audit by **Hacken** on March 2, 2023, receiving a score of 10/10. The full audit report is publicly available. +* **Interoperability:** The Yellow Network operates as a blockchain-agnostic Layer-3 overlay network. The $YELLOW token will be bridged to Base, Arbitrum, Linea, BNB Chain, and Polygon using [specify bridge technology/mechanism] to enable multi-chain accessibility. +* **Smart Contract Addresses:** [Will be published on the official website and in a supplementary document prior to token distribution] +* **Open Source Code:** The Clearnode software and core protocol implementations are open-source and publicly available at [insert GitHub repository URL]. The smart contracts have been audited by Hacken (audit available at [insert URL]). +* **Technical Documentation:** Comprehensive technical documentation, including API references and integration guides, is available at https://docs.yellow.com + +--- + +## Part J - Sustainability Indicators + +In accordance with Article 6(10) of MiCA, the following information on sustainability indicators is provided: + +* **Consensus Mechanism Energy Consumption:** The $YELLOW token is deployed on Ethereum, which uses a Proof-of-Stake (PoS) consensus mechanism following The Merge in September 2022. Ethereum's PoS mechanism reduced the network's energy consumption by approximately 99.95% compared to the previous Proof-of-Work system. The estimated energy consumption per transaction on Ethereum PoS is approximately [insert current estimate] kWh. + +* **Bridged Networks:** The token is also bridged to Base, Arbitrum, Linea, BNB Chain, and Polygon, all of which utilize PoS or similar low-energy consensus mechanisms: + - Base (Ethereum Layer-2): Uses optimistic rollup technology, inheriting Ethereum's PoS security + - Arbitrum (Ethereum Layer-2): Uses optimistic rollup technology, inheriting Ethereum's PoS security + - Linea (Ethereum Layer-2): Uses zero-knowledge rollup technology, inheriting Ethereum's PoS security + - BNB Chain: Uses a PoS-based consensus mechanism + - Polygon: Uses a PoS consensus mechanism + +* **Layer-3 Network Operations:** The Yellow Clearnet operates as a Layer-3 virtual ledger with off-chain state channel technology. The majority of trading operations occur off-chain, requiring no blockchain transactions and thus consuming minimal energy. Only periodic settlement transactions and channel open/close operations are recorded on-chain, significantly reducing the per-transaction environmental footprint compared to fully on-chain trading. + +* **Carbon Footprint Estimate:** [If available, insert estimated annual carbon footprint of network operations, or state "The project is working to establish comprehensive carbon footprint measurements and will publish updates on the official website."] + +* **Sustainability Commitment:** Detailed and updated sustainability indicators, including energy consumption metrics, carbon footprint estimates, and any environmental initiatives undertaken by the Layer-3 Foundation, will be published and regularly updated on the project's official website at [insert URL]. + +* **Renewable Energy:** [If applicable, describe any commitments to renewable energy usage for node operations or data centers] \ No newline at end of file