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Treasury

The Treasury is a pot of funds collected through a portion of block production rewards, transaction fees, slashing, and staking inefficiencies.

Treasury funds are held in a system account that cannot be controlled by any external account; only the system internal logic can access it.

Treasury Inflow and Outflow​

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).
  • 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​

OpenGov allows for managing funds through six tracks, each with its own origin and track parameters.

  • 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.

Treasurer​

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​

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​

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​

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​

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​

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