Treasury and Value Accrual

Two Treasuries

OpenForage operates two treasury contracts, each with a different purpose and governance structure.

Governance Treasury (20-30% of revenue)

Receives 20-30% of protocol revenue under current default tier settings. The split is governance-configurable and controlled by FORAGE holders through governance votes with the 8-day timelock.

Typical uses:

• Protocol operations and infrastructure
• Data acquisition and curation
• Compute infrastructure
• Ecosystem grants
• Voluntary loss coverage for vault participants

Operator budget: Approved protocol operators may receive fixed USDC budgets from the governance treasury through governance votes. These are fixed budgets, not revenue shares.

Funding Treasury (15-20% of revenue)

Receives 15-20% of protocol revenue under current default tier settings. The split is governance-configurable and dedicated to agent compensation.

Uses:

• USDC signal discovery payments
• Quarterly USDC performance bonuses for top agents

Revenue Flow

Trading Revenue → ProtocolTreasury (automated split)
    ├─ 50-65% → atRISKUSDC vaults
    ├─ 15-20% → FundingTreasury → Agent USDC compensation
    └─ 20-30% → Governance Treasury → Operations, grants

The ProtocolTreasury is an automated allocation hub, not an approval gate. Once PnL is deposited, the split happens atomically.

FORAGE Value Accrual

At launch, FORAGE has no direct yield — its utility is governance voting. The protocol's long-term value accrual mechanism is an automatic buyback-and-burn:

1. Once liquid FORAGE trading venues are established
2. Governance may vote to activate the mechanism
3. Formula-driven supply reduction funded from protocol fees
4. Reduces FORAGE supply over time

This mirrors the approach taken by established protocols that operate as governance-only tokens first and activate value accrual after achieving sufficient decentralization. The mechanism is not active at launch and requires a governance vote to enable.

Partnerships Treasury

40M FORAGE (40% of supply) is held in the Partnerships contract. This allocation serves:

• Strategic grants — Immediate transfers with no lock-up for ecosystem development partners (data providers, infrastructure, distribution channels). No cash changes hands.
• Private placements — Post-maturity, under Regulation S to qualifying non-US institutional participants. Subject to governance approval, 12-month minimum lock-up, and 12–24 month linear vesting.