> For the complete documentation index, see [llms.txt](https://elephanteth.gitbook.io/elephant.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elephanteth.gitbook.io/elephant.money/elephanteth/economics.md).

# Economics

When the value of ELEPHANT is rising, it is due to an increase in user growth, that is growing ELEPHANT token buyers (the front office), as well as an increase in protocol participation in $TRUNK minting and Elephant Futures Vaults (the back office).

### There are two main sources that create ELEPHANT buying volume

1. $ELEPHANT token holders
2. $TRUNK minters and Futures participants (via the Elephant Buyback System)

<figure><img src="/files/Wcut1r1g6I0HptJfxp1H" alt=""><figcaption></figcaption></figure>

### The front office and the back office explained

$ELEPHANT token holders are essentially the front office, they are holding $ELEPHANT as a store of value, seeking price stability and price appreciation.&#x20;

[$TRUNK](broken://pages/y2hSS9P7UNWPxabwFarp) minters and Futures participants can be seen as the back office, they do not directly interact with $ELEPHANT, they enter the ecosystem to earn stable passive income with $TRUNK stablecoin or DAI. Though they do not directly interact with $ELEPHANT token, their activities do drive more $ELEPHANT buying volume none the less.&#x20;

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### Volume

Each type of ecosystem participant generates their own unique ELEPHANT buying volume/pressure

* The **retail buyers** that are buying ELEPHANT directly for price appreciation, bring daily buying volume.
* **Futures participants** lock DAI to earn daily yield in DAI, bring daily buying volume as well, as 90% of the DAI is sent to the DAI Treasury.
* **Trunk minters** use DAI to mint $TRUNK stablecoin, which subsequently gets deposited into farms or bonded (in Stampede) to earn a daily yield in TRUNK. These participants bringing their own unique daily buying volume as well, as 100% of the DAI from minting goes to the DAI Treasury.

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100% of the funds from the DAI Treasury are used to buyback ELEPHANT tokens from Uniswap.
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Participants can use $TRUNK to enter Stampede Bonds, Farms or TRUMPET, one of these ways:&#x20;

1. Minting TRUNK with DAI and entering [Farms](broken://pages/vtvyLCZYHNxwEsEMy5w3) or bonding TRUNK (which **adds** buying volume to $ELEPHANT)
2. Buying TRUNK on UNI and entering Farms or bonding TRUNK (does **NOT add** buying volume to $ELEPHANT)&#x20;

### Long Term Growth

A deeper look into the long-term growth strategy for ELEPHANT token can be found [here](/elephant.money/elephant-token-supply-management-system-growth.md).

### Protocol Owned Liquidity Management&#x20;

A deeper look into the fundamental liquidity management strategy can be located [here](/elephant.money/liquidity-management-stability.md).&#x20;