# Treasury

##

The Treasury is a pot of funds collected through a portion of block production rewards, transaction fees, slashing, and [staking inefficiencies](https://wiki.polkadot.network/docs/learn-staking#inflation).

Treasury funds are held in a [system account](https://wiki.polkadot.network/docs/learn-account-advanced#system-accounts) that cannot be controlled by any external account; only the system internal logic can access it.

### Treasury Inflow and Outflow[​](https://wiki.polkadot.network/docs/learn-polkadot-opengov-treasury#treasury-inflow-and-outflow) <a href="#treasury-inflow-and-outflow" id="treasury-inflow-and-outflow"></a>

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 [here](https://research.web3.foundation/Polkadot/overview/token-economics)).
* **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.

### Treasury Tracks[​](https://wiki.polkadot.network/docs/learn-polkadot-opengov-treasury#treasury-tracks) <a href="#treasury-tracks" id="treasury-tracks"></a>

OpenGov allows for managing funds through six tracks, each with its own [origin and track parameters](https://wiki.polkadot.network/docs/maintain-guides-polkadot-opengov#origins-and-tracks-info).

* Treasurer
* Big Spender
* Medium Spender
* Small Spender
* Big Tipper
* Small Tipper

HOW TO ACCESS TREASURY FUNDS?

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 [here](https://wiki.polkadot.network/docs/learn-guides-treasury#creating-a-treasury-proposal).

#### Treasurer[​](https://wiki.polkadot.network/docs/learn-polkadot-opengov-treasury#treasurer) <a href="#treasurer" id="treasurer"></a>

This track can be used for treasury spending requests up to 10M DOT per referendum. Each referendum requires a decision deposit of 1000 DOT.

#### Big Spender[​](https://wiki.polkadot.network/docs/learn-polkadot-opengov-treasury#big-spender) <a href="#big-spender" id="big-spender"></a>

This track can be used for treasury spending requests up to 1M DOT per referendum. Each referendum requires a decision deposit of 400 DOT.

#### Medium Spender[​](https://wiki.polkadot.network/docs/learn-polkadot-opengov-treasury#medium-spender) <a href="#medium-spender" id="medium-spender"></a>

This track can be used for treasury spending requests up to 100K DOT per referendum. Each referendum requires a decision deposit of 200 DOT.

#### Small Spender[​](https://wiki.polkadot.network/docs/learn-polkadot-opengov-treasury#small-spender) <a href="#small-spender" id="small-spender"></a>

This track can be used for treasury spending requests up to 10K DOT per referendum. Each referendum requires a decision deposit of 100 DOT.

#### Big Tipper[​](https://wiki.polkadot.network/docs/learn-polkadot-opengov-treasury#big-tipper) <a href="#big-tipper" id="big-tipper"></a>

This track can be used for treasury spending requests up to 1000 DOT per referendum. Each referendum requires a decision deposit of 10 DOT.

#### Small Tipper[​](https://wiki.polkadot.network/docs/learn-polkadot-opengov-treasury#small-tipper) <a href="#small-tipper" id="small-tipper"></a>

This track can be used for treasury spending requests up to 100 DOT per referendum. Each referendum requires a decision deposit of 1 DOT.


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