Protocol Treasury

In addition to our dynamic staking rewards, a portion of the fee revenue generated by the protocol will be redirected to a treasury, with a structure similar to Apollo DAO's warchest. The treasury will be composed of a multitude of Terra-native assets, which will be decided upon by governance. The funds accrued in this treasury will be controlled by stakers of the $SHARD token, and they can decide the future use cases for these funds. Potential use cases for this treasury could be the implementation of protocol-owned liquidity, use of funds to bootstrap coverage vaults, grants to expand the protocol and develop new use cases using its base infrastructure, or to redirect warchest funds to stakers. This treasury has to potential build further intrinsic value for the $SHARD token, while limiting $SHARD emissions to boost protocol growth.