Totem Treasury

Totem's Treasury is the mechanism and process to ensure the proper flow of funds in the entire Totem ecosystem.

Income

The main income of the platform will come from Assets being sold on the platform. Every asset is sold for a Basic Unit Cost or a multiplier of it. See bootstrapping below.

Separation into several Funds

Different funds hold different parts of the entire treasury. This separation is made to ensure:

  • Simple and clear separation of funds
  • Transparent operations
  • Allows separate and different OPSEC processes for different uses
  • Ease of reporting
  • Simplified security by having clear permission for access

For example, the Platform Fund holds funds for the platform's development. It would be used to incentivize the development of the platform and would provide a simple way to monitor it. In addition, some clan members would have access to pull funds from it for these activities but possibly no access to the GameDev Fund.

Flow from the Main Fund

Funds flow from the Main Fund in several ways:

Operational funds

Operational funds allow the system to work. They cover the expenses of running the system.

Periodically 2.5% of the funds reaching the treasury are moved into the Operations Fund.

Treasury Split

After funds are deducted from the operational funds, the remaining funds are divided between Totem Gamedev Fund and Totem Platform Fund according to the Treasury Split. Not all the funds flow immediately to the funds, but no amount can be given to one of the funds without funding the other one. This is made to ensure that the Treasury Split is always respected.

The Treasury split is currently 70%-30%, so whenever funds are moved from the treasury, they flow into both funds. 70% of the funds flow into the Totem Gamedev Fund, and 30% flow into the Totem Platform Fund.

The Treasury Split is defined by the Tribe. See Tier 1 rules in Constitution and Laws.

Bootstrapping

At this early stage, there is no income generated on the system. To bootstrap the operation, the Contributors have contributed funds to the DAO treasury to ensure that the different operations can begin, such as incentivizing game creation and building the platform itself.

Diagram

This diagram reflects our current high level plans and understanding and, of course, would be changed based on DAO progress and decisions. 

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Treasury diagram
Treasury diagram
Totem Game Development Network 2022