Funding
Driving value creation in the network while provide long-term stability
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Driving value creation in the network while provide long-term stability
Last updated
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All the revenue generated from the Fuckery Protocol comes in the form of $ADA and is allocated to 2 different funds that drive value in the network.
The Treasury is a fund that drives the value creation in the network via a continuous allocation of funds using the Proposal process. The Treasury fund is also responsible for keeping the DAO functioning by covering operating expenses and maintenance costs.
Every quarter, a % of the Treasury is put up for all Organizations to utilize and focus on their specific goals using the Proposal Process.
The % of the Treasury isn't divided among the Organizations, but rather they all share in the ability to contribute value in exchange for the funding to do so.
The $ADA rationed by the Treasury each quarter doesn't have to be allocated during that quarter. Instead, it's an ongoing pool of funding that continues to grow if the $ADA isn't used. The Proposal process is open-ended, so as long as you contribute to the protocol, you can apply for the funds.
A % of the quarterly allocation is also divided among the Organization Leaders for their services.
The Treasury funds usage outside of the quarterly allocations may be any of the following:
Operating expenses of existing and new tech, hosting, and SaaS products
Legal fees for the DAO
CPA fees for the DAO
Stake Pool Maintenance
Estimated quarterly expenses are subtracted from the Treasury before the % allocation for the quarter is determined.
All of the Treasury funds can't be held in $ADA since we have recurring USD expenses and debt. We will maintain a % of the Treasury as a stablecoin (ex: $DJED) to protect this downside. The balance is only maintained via incoming revenue in the form of $ADA that can be converted to the stablecoin. Stablecoin funds that exist in the Treasury never are used to buy $ADA to bring the % back to the desired level.
The Reserve is a fund that backs the value in the network and is a mechanism to protect the long-term stability of the Fuckery Protocol.
The $ADA in the Reserve is controlled by smart contract functions owned by the DAO with incentive mechanisms to allow network participants to control the supply.
There is a Reserve Target set by the Governance Options that control the collateral health when it comes to burning $MFER.
Full transparency between the Reserve and Treseasry exists on-chain and is summarized for consumption via the MFER Dapp.
The $ADA held by the Treasury and the Reserve is also allocated to the Stake Pool. $MFER generated by the Stake Pool because of this allocation is automatically burned.
Management of the Treasury and Reserve is handled via multi-sig wallets that the Organization Leaders possess.
All Funding configurations are controlled by Governance Options.
