🏦Treasury

The Treasury in the Ring protocol plays a pivotal role in maintaining the protocol's financial stability and supporting continuous development. It is not only funded by various fees collected from protocol operations but is also managed algorithmically by "The Ring." This management includes strategic financial operations such as buybacks, burns, and dynamic rewards adjustments to optimize the protocol's economic health.

Purpose of the Treasury

The Treasury serves several key functions:

• Risk Management: Acts as an insurance pool to protect against systemic risks and provide stability in volatile market conditions.

• Protocol Development: Funds ongoing development, improvements, and scaling of the Ring protocol.

• Community Initiatives: Supports community-driven projects and governance initiatives.

• Buybacks and Burns: Automatically conducts buybacks and token burns to reduce supply and increase token value.

• Rewards Adjustment: Dynamically adjusts staking and liquidity provision rewards based on market conditions and treasury health.

Fee Structure

The Ring protocol imposes a few fees to fund its treasury. Below is a table detailing each fee type, its purpose, and the typical rate.

Fee Type	Purpose	Base Rate (%)
Sell Fees	Charged on each $RING sell	1 to 7% depending on market conditions
Staking Fees	Applied when entering or exiting staking	0% on entry, 1.5% on exit
LP Fees	Charged on withdrawing liquidity from pools	0% on entry, 0% on exit
Zap Function Fees	Applied for using the Zap function to create LPs	0.25%

Each fee collected by the Ring protocol is strategically set to balance the need for operational liquidity and rewarding long-term participants. Here’s how these fees contribute to the treasury:

Managing Treasury Funds

Treasury funds are managed by "The Ring," leveraging its algorithmic capabilities to make real-time decisions about fund allocation, buybacks, burns, and reward adjustments. This automated management ensures efficiency and responsiveness to changing market conditions. Governance decisions, including larger strategic choices, are made through proposals and voting by the community to ensure transparency and alignment with the protocol’s long-term goals. Investments, allocations, and disbursements are regularly reported and audited to maintain trust and accountability within the community.