4.6 Treasury
The portion of secondary issuance that doesn’t go to 1) miners or 2) long-term holders with tokens locked in the NervosDAO, will go toward a treasury fund. To demonstrate: if 60% of issued CKBytes are used to store state and 30% of the CKBytes are deposited into the NervosDAO, miners will receive 60% of the secondary issuance, the NervosDAO (long-term holders) will receive 30% of the secondary issuance, and 10% of the secondary issuance will go to the treasury.
The treasury fund will be used to fund ongoing research and development of the protocol, as well as building the ecosystem of the Nervos Network. The use of the treasury funds will be open, transparent and on-chain for everyone to see. Compared to an inflation-based treasury funding model, this model doesn’t dilute long-term token holders (who have deposited their tokens into the NervosDAO). Funding of protocol development is strictly derived from the opportunity cost to short-term token holders.
The treasury won’t be activated immediately upon the main-net launch of the Nervos Common Knowledge Base. With the community’s approval, it will be activated with a hard-fork later, only after the Nervos Foundation has exhausted the Ecosystem Fund, included in the Genesis block. Prior to activation of the treasury, this portion of the secondary issuance will be burned.