Treasury

The GEN Treasury functions as the central economic engine of the Genos protocol, designed to preserve capital and support long-term value accrual. It is funded through the bonding mechanism and generates revenue from capital allocations and trading fees collected from the protocol-owned liquidity pool.

The Treasury allocates capital to conservative, diversified onchain strategies, including overcollateralized lending, institutional‑grade products, and other low‑volatility instruments that prioritize capital preservation over speculative returns. The protocol avoids leverage and any capital allocation that could introduce material drawdown risk, ensuring Treasury performance remains resilient across market cycles. All Treasury strategies and allocations are subject to community approval through governance votes.

During the genesis stage, 60% of Treasury-generated returns are allocated to buy back and burn GEN tokens, 20% are used for protocol development, and the remaining 20% is added to Treasury reserves. In the post-genesis phase, 60% of Treasury-generated returns are allocated to buy back GEN tokens and distribute them as staking rewards, 20% are used to buy back and burn GEN tokens, and the remaining 20% are allocated to protocol development.