How the Overledger Network Community Treasury powers the Network of Networks

Quant Network recently released the Overledger Network Community Treasury Design paper which compliments the Overledger Network Whitepaper. In this article I will discuss the community treasury design and how it will add additional utility to the QNT token and facilitate the launch of Overledger Network, a horizontally scalable decentralised trusted Network of Networks connecting all DLTs (permissioned, permissionless, current and future) as well as existing networks. Where anyone will be able to run a node and contribute and be rewarded with transaction fees in QNT.


The community treasury is a Multi Chain Application (MAPP) operating in a trustless manner with the use of Layer 2 unidirectional payment channels. This enables scalability for payments for transaction fees in QNT with the vast majority of transactions being performed off chain instantly, with only minimal transactions being done on chain such as the opening and closing of channels and random reconciliations). This means despite QNT being a ERC20 token it doesn’t matter about Ethereum’s low tps or high ETH fees.

  • Many more projects to be built as MAPPs benefiting from interoperating with multiple blockchains as well as offchain networks and utilising payment channels for fast, cheap payments.
  • Along with treaty contracts using Quant’s atomic swap capability this also provides additional functionality for DEXs to be built on Overledger Network
  • Offering Treasury-as-a-Service to projects
  • Potentially enabling gas fees to be paid by users in QNT to the treasury which is then converted to other tokens as required

A more detailed look at the Community Treasury Design:

Overledger Data Standards

The Overledger Network relies on data standards so that all stakeholders in the network “speak a common language” and inconsistencies in responses can be detected. This data standard is known as the Overledger Data Standard. By having a data standard, data object instances can be compared of the same object type to determine if they are equivalent and confirm the output enabling these to be compared against other gateways enabling a game theoretic model which disincentivises malevolent behaviour and provides trust.


Users can request functions to be computed by Overledger Gateways. Each function takes as input a data object instance of a specific data object type and returns as output another data object instance of another specific data object type. Functions are organised into four main sets:

Creating end to end trust


Users will each need to deposit an amount of QNT that will be used to pay fees to gateways for processing functions. This deposit will be used to fund a payment channel between the user and the community treasury. Any fees that haven’t been spent when the channel times out / is closed will be returned to the user.


Overledger gateways will be a lightweight single binary in Java to run on any machine windows/Linux/Mac (This can be on your personal PC / Laptop or you could use a Virtual Private Server (VPS) through a cloud hosting provider). The Overledger gateway can then be combined with blockchain nodes to process various functions / transactions.

Community Treasury

The community treasury is a multi-chain application (MAPP) and its role is to handle QNT payments flowing from users to the gateways in such a way as to disincentivise faulty behaviour from any user or gateway, and to do so in a manner where it can be held accountable to any observer. For the treasury to operate in a trustless manner as well as overcome the limitations of the speed of the Ethereum Network and reduce any on-chain transaction costs to pay in Ether, layer 2 unidirectional payment channels will be used.

How payment channels work

Payment channels are required as the QNT token exists on Ethereum, which has a low number of transactions per second and requires every on-chain transaction to pay fees in Ether. The payment channels are Unidirectional and enable the vast majority of transactions to be processed off-chain instantly without paying ETH fees. There will (at least initially) be two types of layer 2 unidirectional payment channels in use: (1) between users and the community treasury; and (2) between the community treasury and gateways.

Trustless Escrow Smart Contracts

For a clear separation between fee payments and deductions (slashing) for bad behaviour, payment channels will strictly be used to process QNT fees flowing through the network whereas other smart contracts will be used to handle dispute payments.

DLT Enthusiast and Writer. Interoperability is key for DLT to achieve its true potential. Avalanche $AVAX, Injective Protocol $INJ and Quant $QNT