Governance: Treasury

Treasury and Fund Allocation

AionicDAO’s governance structure includes a decentralized treasury that collects revenue from fees and interest generated through the protocol. The treasury is primarily denominated in gas tokens (such as Ether on Ethereum), and the community, through governance, decides how to allocate these funds.

Interest and Liquidation Fees: AionicDAO generates revenue through interest charged on synthetic loans and liquidation fees when undercollateralized positions are liquidated. This revenue flows into the DAO’s treasury, where it can be utilized for various purposes, such as development, community incentives, or security audits.

Proposal-Based Funding: The treasury is managed by the community through proposals. Token holders can propose and vote on how the funds should be spent, whether for operational expenses, expanding liquidity, improving the user interface, or creating new synthetic asset classes.