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Treasury

An overview of how the treasury works, use cases, conditions, how to send and redeem from the treasury, and additional FAQs.
Overview
In the Unit token economy, the Treasury is a transparent, immutable way by which value can be distributed to token holders.  Whatever assets are added to the Treasury become the reserve assets of the enterprise and give token holders ownership of those assets equal to their proportion of token holdings.
The value that backs a token through its treasury operates as a kind of reserve asset or “book value” that exists even if the market sours on the speculative value of the token trading on the market. If all else fails, token holders can remove value from the treasury in proportion to their ownership.  As a result, it is likely that the speculative value will generally remain at or above the value in the treasury.
Use
Every token created on Unit Network has access to its own treasury.
Once digital assets are transferred into a tokens' treasury they are only redeemable by the token holders, who can choose to sell their tokens back to the treasury and redeem whatever digital assets have been sent there.
The Treasury is a mechanism by which any user can establish the floor price of a token and substantiate the tokens value with deflationary digital assets like Bitcoin.
The Treasury is a transparent, immutable way by which value can be distributed to token holders. Whatever is added to the Treasury become the reserve assets of the enterprise and gives token holders ownership of those assets equal to their proportion of token holdings.
Keep an eye on token treasuries! If there's nothing in the treasury, the token value is speculative with no clarity on downside risk and we would advise caution.
Conditions
The funds in the treasury are locked and can only be redeemed by token holders. Not even the token creator is able to remove the crypto held unless they send their tokens back to the treasury to redeem their portion on the crypto held there. When redeeming blue chips from the treasury the tokens are 'burned'. 
There are two ways that digital assets are sent to a token’s treasury.  
1.The first is by the token creator, who can transfer funds from the token’s bank or their personal wallet. 
2.The second is during an exchange with the token’s liquidity pool, which automatically sends a 0.5% exchange fee to the token’s treasury.  Once digital assets are transferred into a token's treasury, they are only redeemable by token holders.
Everyone can see the bank and treasury on the token page of any token on the Unit Network, including UNIT.
How to send crypto to the Treasury
1.Click on the Wallet page from the sidebar navigation
2.Select Transfer
3.Click To Treasury on the transfer module
4.Choose token and amount to be transferred
5.Click Transfer
How to redeem from the Treasury
1.Click on Explore page from the sidebar navigation
2.Search for the token you wish to redeem from and select it
3.Click on the Treasury
4.Click Redeem
5.Select the token that you wish to redeem and enter the amount
6.Click Redeem
Treasury FAQ
What’s the most powerful thing about the Treasury?
The value that backs a token through its treasury operates as a kind of reserve asset or “book value” that exists even if the market sours on the speculative value of the token trading on the market. If all else fails, token holders can remove value from the treasury in proportion to their ownership. As a result, it is likely that the speculative value will generally remain at or above the value in the treasury.
How do digital assets get to the Treasury?
There are two ways that digital assets are sent to a token’s treasury. The first is by the token creator, who can transfer funds from the token’s bank or their personal wallet. The second is during an exchange with the token’s liquidity pool, which automatically sends a 0.5% exchange fee to the token’s treasury. Once digital assets are transferred into a token's treasury, they are only redeemable by token holders.
How does the Treasury help reveal a token’s intrinsic value?
All financial assets are typically valued based on an assessment of future income paid to the holder (bonds - interest, common and preferred stocks - dividends, real estate - rent, etc.), discounted to the present. Through the treasury, we now have a mechanism to establish the floor price of a token and substantiate its value with deflationary digital assets like Bitcoin.
A formula for token valuation: Token Valuation = NPV Treasury.
How is the floor price of a token calculated?
The treasury total amount divided by the token total maximum supply represents the floor price of the Token.
How are funds raised held as the underlying assets in the treasury?
They are held in the same assets that were transferred to the treasury. In other words, if all funds are collected in BTC, the intention is not to touch the funds by trading that could put token holders at risk.
Who is responsible for it?
Will be the responsibility of the token holders and core team to ensure the protocol is open and transparent. Governed by code.
How does one have visibility into the treasury?
Everyone can see the bank and treasury on the token page of any token on the Unit Network, including UNIT.
How is the treasury protected so that nothing will be withdrawn?
It is not technically possible to withdraw more than a token holder’s proportional share of the token supply, as no single user has access to the treasury. The funds can only be accessed by token holders in exchange for their tokens.
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Last modified 2mo ago