FAQ - Treasury
What's the main benefit of the Treasury mechanism?
The Treasury acts as a strong reserve, setting a base value for tokens regardless of market speculation.
If market sentiment declines, token holders can still withdraw value from the treasury based on their ownership.
This ensures that the token's speculative value should consistently match or surpass the value held in the treasury.
How are digital assets deposited into the Treasury?
Digital assets enter a token's treasury through two main channels.
Token creators or users can transfer assets from the token's bank or personal wallets.
During transactions in the token's liquidity pool, a 0.5% exchange fee is sent directly to the treasury.
Once assets are in the treasury, only token holders have the authority to redeem them.
How does the Treasury reveal a token's true value?
The Treasury helps determine a token's core value by setting a base price.
Unlike traditional assets valued by future income, the Treasury leverages deflationary digital assets like Bitcoin to establish token worth.
Token valuation is calculated as the Net Present Value (NPV) of the Treasury.
How is the lowest price of a token decided?
Calculate the floor price by dividing the total treasury amount by the token's maximum total supply.
How are the raised funds kept as assets in the treasury?
Funds raised are preserved in the same assets initially transferred to the treasury.
If all funds are collected in Bitcoin (BTC), they are not traded to protect token holders from potential risks.
Who is responsible for managing this process?
The responsibility is shared between token holders and the core team to uphold protocol transparency and openness. Governance is automated through code. Governance is enforced through code.
How can people see what's in the treasury?
Access treasury details on the token page.
Available for all tokens, including UNIT.
Provides transparency on treasury holdings.
How is the treasury protected from unauthorized withdrawals?
Safeguarded by design to prevent unauthorized withdrawals
No single user has direct access to the treasury
Funds can only be accessed by token holders in exchange for their tokens