Treasury and Value Accrual

Two Treasuries

OpenForage operates two treasury contracts, split by the asset they hold and distribute.

USDCTreasury

The single protocol-USDC router. It receives realized USDC PnL and automatically splits it per current default tier settings (governance-configurable) into three earmarks:

• Depositor yield (50-65%) — flows to atRISKUSD vaults as exchange-rate appreciation.
• Agent USDC funding (20-5%) — USDC signal-discovery payments and quarterly USDC performance bonuses for top agents.
• Protocol share (flat 30%) — 15% Foundation plus a 15% protocol-retained reserve, the same across every tier. Funds protocol operations and infrastructure, data acquisition and curation, compute, ecosystem grants, and voluntary loss coverage for vault participants.

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

FORAGETreasury

The consolidated FORAGE distribution treasury. It holds and distributes FORAGE for governance reward programs and airdrops across:

• the agent reward pool,
• the depositor airdrop pool,
• the strategic partnership allocation.

Revenue Flow

Trading Revenue → USDCTreasury (automated split)
    ├─ 50-65% → depositor yield (atRISKUSD vaults)
    ├─ 20-5%  → agent USDC funding earmark
    └─ 30%    → protocol share (flat: 15% Foundation + 15% protocol-retained reserve)

The 30% protocol share is flat across every tier; depositor yield plus agent funding make up the remaining 70%. The USDCTreasury 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.