# Treasury System

## 🧾 Rationale

Most protocols burn fees to reduce supply and increase scarcity. While that approach has some merit, Server Protocol chooses a **sustainability-first strategy**: instead of burning fees, all $SERVER collected through platform actions (like proposals and voting) is redirected to a **Treasury Wallet**.

This design allows us to:

* **Fuel long-term growth**
* **Support future grants**
* **Reinvest in the ecosystem**
* **Maintain flexibility** in responding to community needs

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## 🏦 Treasury Structure

Every time a user:

* **Submits a proposal**, or
* **Votes on a proposal**,

…they must pay a **fixed fee in $SERVER** (currently 100 $SERVER for proposals, and 5 $SERVER per vote).\
These tokens are **sent directly to the Treasury Wallet**, rather than being burned.

The treasury functions as a **smart contract-controlled fund**, fully on-chain, transparent, and immutable.

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## 🔁 A Circular Economy

Instead of being removed from the ecosystem (as happens in burn models), these fees:

* Are **recycled into new grants**, allowing new developers to receive funding.
* May be used in the future for **liquidity provisioning**, **reward pools**, or **community-driven initiatives**, based on governance decisions.
* Enable **protocol self-sustainability** — no need for endless token minting or external funding rounds.

This circularity ensures that **the more the platform is used, the stronger and more self-sufficient it becomes**.

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## 🔐 Governance Over Treasury

In future iterations, the community will be empowered to:

* **Propose how treasury funds are allocated**
* **Vote on investment strategies**
* **Create bounties, competitions, or fund infrastructure**

This reinforces Server Protocol's commitment to becoming a truly **decentralized, community-owned ecosystem**.
