Treasury
Last updated
Last updated
The Treasury is a pot of funds collected through a portion of block production rewards, transaction fees, slashing, and .
Treasury funds are held in a that cannot be controlled by any external account; only the system internal logic can access it.
Tokens that are deposited into the Treasury (i.e. the inflow) is determined by the following mechanisms:
Transaction fees: 80% of the transaction fees of every submitted extrinsic is diverted to the Treasury, while 20% is given to the block producers.
Staking inefficiencies: the network knows an exogenously determined parameter called ideal staking rate. The APY for stakers (nominators & validators) decreases whenever the actual staking rate is not equal to the ideal staking rate. To keep inflation constant at 10%, the system does not creates less tokens, rather some share of the overall reward for stakers is diverted to the Treasury (more information ).
Slashes: whenever validators and nominators are slashed, a share of the slashed tokens are diverted to Treasury. They are typically rare and unpredictable events.
Transfers: everyone can send funds to the Treasury directly. This is a rare event and typically due to grantees reimbursing some of the amount they got allocated for various reasons.
The outflow is determined by the following mechanisms:
Burned tokens: at the end of each spending period lasting 24 days on Polkadot, 1% of the available funds are burned, respectively.
Treasury proposals & Bounties: they make up the largest share of outflow tokens to the community and need to be approved by governance. Then, payouts occur at the end of a spending period.
Tips: smaller payouts directly to grantees that can happen within a spending period.
OpenGov allows for managing funds through six tracks, each with its own .
Treasurer
Big Spender
Medium Spender
Small Spender
Big Tipper
Small Tipper
HOW TO ACCESS TREASURY FUNDS?
This track can be used for treasury spending requests up to 10M DOT per referendum. Each referendum requires a decision deposit of 1000 DOT.
This track can be used for treasury spending requests up to 1M DOT per referendum. Each referendum requires a decision deposit of 400 DOT.
This track can be used for treasury spending requests up to 100K DOT per referendum. Each referendum requires a decision deposit of 200 DOT.
This track can be used for treasury spending requests up to 10K DOT per referendum. Each referendum requires a decision deposit of 100 DOT.
This track can be used for treasury spending requests up to 1000 DOT per referendum. Each referendum requires a decision deposit of 10 DOT.
This track can be used for treasury spending requests up to 100 DOT per referendum. Each referendum requires a decision deposit of 1 DOT.
Access to Treasury funds requires successful enactment of referendum in the respective treasury track on-chain. Learn how to submit a treasury proposal for referendum .