> For the complete documentation index, see [llms.txt](https://docs.drunkencats.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.drunkencats.xyz/economic-model/treasury.md).

# Treasury

### Overview

The DrunkenCats Treasury is designed to support long-term protocol development, ecosystem growth and operational sustainability.

Unlike venture-funded platforms that rely on external capital, the treasury is intended to grow organically alongside protocol adoption and on-chain activity.

As trading volume increases, treasury resources expand proportionally, creating a sustainable funding model aligned with ecosystem growth.

***

### Treasury Revenue

DrunkenCats utilizes a protocol fee model based on swap activity.

#### Mainnet Swap Fee

Total swap fee: **0.3%**

Fee distribution:

* **70%** → Liquidity Providers
* **20%** → DrunkenCats Treasury
* **10%** → $CAT buyback & burn

This means that for every swap executed through the protocol, a portion of the trading fee is automatically allocated to the treasury.

As trading activity grows, treasury revenue grows alongside the ecosystem.

{% hint style="info" %}
During testnet & before $CAT TGE 30% from swap fees fill be distributed to DrunkenCats Treasury.
{% endhint %}

***

### Treasury Allocation

Treasury resources may be allocated toward:

#### Protocol Development

* New feature development
* User experience improvements
* Infrastructure upgrades
* Product expansion

#### Security

* Smart contract audits
* Security reviews
* Bug bounty programs
* Risk assessment initiatives

#### Ecosystem Growth

* Community incentives
* CAT Points campaigns
* User acquisition programs
* Ecosystem grants

#### Liquidity Expansion

* Strategic liquidity initiatives
* Protocol-owned liquidity opportunities
* Market growth programs

#### Infrastructure

* Backend services
* Analytics infrastructure
* Monitoring systems
* Operational costs

#### Partnerships

* Ecosystem integrations
* Strategic collaborations
* Business development initiatives

***

### Treasury Philosophy

The treasury exists to strengthen the long-term sustainability of the DrunkenCats ecosystem.

Its primary objective is not short-term profit extraction, but rather the continuous reinvestment of protocol revenue into:

* Product development
* Security improvements
* Liquidity growth
* Ecosystem expansion
* User incentives

The success of the treasury is directly tied to the success of the protocol and its community.

***

### Long-Term Vision

Over time, the treasury is expected to become a strategic resource for supporting the continued growth of DrunkenCats and the broader LitVM ecosystem.

As protocol adoption increases, treasury revenue may enable larger investments into infrastructure, security, ecosystem development and future protocol expansion.


---

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