Treasury
Every token on Unit Network has an immutable treasury that holds reserve assets, establishes a floor price, and enables proportional redemption.
What you'll learn
- How treasuries provide transparent token backing
- How floor prices are calculated
- How token redemption works
How It Works
Every token's treasury:
- Holds reserve assets (BTC, ETH, DOT, USDU, etc.) that back the token's value
- Operates immutably — no single user, not even the creator, can withdraw funds
- Grows automatically — 0.5% of every exchange trade flows to the treasury
- Provides a floor price — total treasury value ÷ total token supply
Treasury Revenue Sources
| Source | Details |
|---|---|
| Exchange fees | 0.5% of every trade on the token's DEX |
| Token sale proceeds | Assets used to purchase tokens during sales |
| Direct contributions | Users or creators can send assets to the treasury |
| Bank transfers | Token creators can move assets from bank → treasury |
Floor Price
The floor price is the minimum value of a token, determined by:
Floor Price = Total Treasury Value (in USDU) ÷ Total Token Supply
Example:
| Metric | Value |
|---|---|
| Treasury balance | $2,500,000 |
| Total supply | 1,000,000 tokens |
| Floor price | $2.50 per token |
As more trades happen and treasury grows, the floor price increases — providing ever-stronger backing.
Redemption
Token holders can redeem tokens for a proportional share of treasury assets at any time:
- Floor price calculated from current treasury value
- Choose asset — select which reserve asset to receive (BTC, ETH, DOT, etc.)
- Tokens burned — redeemed tokens are permanently removed from supply
- Assets transferred — equivalent value sent to your wallet
Example redemption:
| Step | Value |
|---|---|
| Jane holds | 200 tokens |
| Floor price | $2.50 |
| Redemption value | $500 |
| BTC price | $36,000 |
| Jane receives | ~0.01389 BTCU |
warning
Redemption permanently burns the tokens. This reduces total supply, which can increase the floor price for remaining holders.
Treasury Rules
| Rule | Details |
|---|---|
| No creator access | Even the token creator cannot withdraw treasury assets |
| Accepted assets | Only UNITCOIN and reserve assets can be sent to treasuries |
| Locked funds | Once deposited, funds are only accessible through redemption |
| Transparency | All balances and transactions are publicly auditable on-chain |
| Native token burning | Sending a token to its own treasury burns it |
UNIT Treasury vs. Token Treasuries
| Feature | UNIT Treasury | Token Treasury |
|---|---|---|
| Scope | Network-wide | Individual token |
| Revenue | 0.5% of ALL trades + 0.5% of all withdrawals | 0.5% of that token's trades |
| Backs | UNITCOIN floor price | Individual token floor price |
| Governance | Network-level | Token-level |
Why Treasury Matters
- Speculation has a floor — market price should always meet or exceed treasury value
- Value is tangible — backed by on-chain, auditable digital assets
- Trust is built-in — immutable governance eliminates counterparty risk
- Growth is automatic — every trade increases reserves
Learn More
- Tokenomics — Complete fee distribution model
- Exchange — How trading fees fund treasuries
- UNITCOIN — The UNIT Treasury
- Treasury Pallet — Technical details