# Funding 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.

Diagram of Treasury Funding cycle that happens each Quarter with Leader payouts

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. ## AFTER INITIAL REVIEW * [ ] Add details on the multi-sig wallet process * [ ] Add details on how Treasury funds are distributed for Proposals and operating expenses * [ ] Add details on stablecoin balance and conversion responsibilities * [ ] Add the formula to Treasury split each Quarter * [ ] Add the formula to calculate the Reserve Target --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.oldmoney.io/mfer/mfer-dao/funding.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.