Treasury

The same entity cannot be both investor and backstop. The dual-treasury separation is the lesson of Terra.

Overview

The Protocol maintains two treasuries with strictly separated mandates. This separation is not cosmetic. It is load-bearing.

Protocol Treasury

The investment reserve. Holds USDC, extractive equity, and eventually celestial revenue claims.

• Takes risk for return
• Never touches the peg directly
• Governed by hard-coded rules before Phase 4, then by an LLM delegate
• Purpose: grow the commons fund through investment

The Protocol Treasury cannot spend DIWAN Treasury funds. The wall is contractual, not administrative.

DIWAN Treasury

The buyer of last resort. Holds the 61% of MULKI allocated at genesis as minting reserve.

• Consumed as DING supply grows
• Intervenes in crises by purchasing bonds or supporting redemptions
• Makes credible commitments because it has no risk appetite
• Does not invest. It backs.

Revenue Waterfall

From Phase 4 onward, all Protocol Treasury revenue follows a strict priority order:

1. Debt service first — bond interest payments
2. CPI peg defense — AMM price pressure to maintain peg
3. Citizen distribution — 50/50 split between citizen wallet and partner government treasury

No accumulation ledger. No CPI oracle. Automatic pause when revenue is insufficient.