> ## Documentation Index
> Fetch the complete documentation index at: https://mintlify.com/p2pdotme/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Treasury and Token Value

> How protocol revenue flows to the treasury and creates value

20% of protocol revenue is contributed back to the treasury, planned to increase to 35% as the protocol matures—subject to MetaDAO futarchy governance. This creates a direct link between protocol usage and token economics.

## Revenue Flow

<Steps>
  <Step title="Protocol Revenue Generation">
    Transaction fees generate real revenue from working product
  </Step>

  <Step title="Treasury Allocation">
    20% of revenue flows to on-chain treasury (planned increase to 35% via MetaDAO futarchy)
  </Step>

  <Step title="Governance Decision">
    Token holders decide deployment via MetaDAO futarchy governance
  </Step>

  <Step title="Value Accrual">
    Approved mechanisms include buy-and-burn, ecosystem grants, liquidity incentives
  </Step>
</Steps>

## Key Mechanisms

### Treasury Funding

* **20% of protocol revenue** flows to the on-chain treasury
* **Planned increase to 35%** as the protocol matures
* Subject to MetaDAO futarchy governance approval

### Governance Control

Via MetaDAO futarchy governance, token holders decide how treasury funds are deployed, including:

* Buy-and-burn
* Ecosystem grants
* Liquidity incentives
* Other value-accruing actions

### Buy-and-Burn Mechanism

Buy-and-burn is one governance-approved mechanism:

* Tokens purchased on the open market via DEX
* Purchased tokens sent to the zero address
* Permanent removal from circulating supply

## Timeline

<Info>
  First treasury allocation expected Q2 2026 (\~3 months post-TGE)
</Info>

## Value Connection

The mechanism gives token holders direct control over value accrual. Revenue comes in, governance decides deployment, and the treasury scales with volume—ensuring protocol traction translates to token holder outcomes.

<CardGroup cols={2}>
  <Card title="Real Revenue" icon="coins">
    Treasury funded entirely by transaction revenue from working product
  </Card>

  <Card title="Scales with Usage" icon="chart-line">
    More protocol usage means larger treasury and stronger value accrual
  </Card>

  <Card title="Holder Control" icon="users">
    Token holders direct how treasury funds create value
  </Card>

  <Card title="Market-Driven" icon="chart-mixed">
    Futarchy ensures proposals are evaluated by market prediction
  </Card>
</CardGroup>