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Protocol Treasury Fund
The Protocol Treasury Fund is an essential component of our protocol's sustainability and growth. We have implemented two main methods to collect funds for this treasury: the time fee and the token trading tax. After generating a new
xTokenNFT through the protocol, a percentage of the Time Fee (ranging from 0 to 20%) is allocated towards the Time Vault, and a portion of this fee is then transferred to the Protocol Treasury Fund. Additionally, we also collect a percentage of the token trading tax, which is applied to all token trades on our platform. This ensures a steady flow of funds into the Protocol Treasury Fund, allowing us to achieve our long-term goals.
40% of the funds collected in the Protocol Treasury Fund will be used for token buybacks and burns of our native
$UPtoken. This buyback program will create scarcity and increase the value of our token over time. The remaining 60% of the funds will be allocated to the growth and development of our protocol. Specifically, 30% of the fund will go towards research and development, marketing, and partnerships that will help us expand our platform and bring in new users. The other 30% will go to the core team responsible for building and maintaining our protocol. This allocation ensures that our team members are fairly compensated for their hard work and dedication, while also allowing us to reinvest in the growth of our platform.
Overall, the Protocol Treasury Fund is a critical element of our protocol's success. It allows us to continuously improve and innovate, while also creating value for our community through token buybacks and burns. As we continue to grow, we will keep a close eye on the fund and ensure that it is being allocated in the most efficient and effective way possible.