The Acala Treasury is a reserve of digital tokens, native and foreign to the Acala ecosystem, stewarded by ACA holders and funded from Acala protocol fees and community contribution events with the purpose of enabling long-term network self-sustainability and growth.
Deployment of the Treasury is primary focused on
- Self-funding a parachain slots on Polkadot
- Bootstrapping protocol liquidity (e.g. provide LKSM, kUSD or DEX pair liquidity)
- Platform and protocol operations and improvements
- Network security operations and enhancements
Further surplus can be deployed for
- Software and tool development
- Community, marketing, and event funding
- Any other future community Karura Treasury Proposals (KTPs)
The primary objective of the Acala Treasury is to build up its DOT reserve to ensure Acala has a sustainable reservoir of DOT to lease a parachain slot from Kusama for the foreseeable future. The Treasury can trustlessly deploy the tokens to bond a parachain for itself to sustain its operation, bootstrap liquidity of the DeFi protocols on Acala to solve the chick-and-egg problem of market makers and takers hence benefiting the entire network.