Reserve Sustainability Formula

The Treasury HODL uses a mathematical formula to maintain reserves and ensure rewards are sustained over time and cannot be fully consumed.

When the reserves in the TH are above a certain threshold, participants receive fixed rewards (where is different for each type of user) weighted by the capacity multiplier. Once the TH reserves fall below this threshold, the rewards become a percentage (again with each type of user applying accordingly) of the TH reserves, similarly weighted by the capacity multiplier. Essentially, if the Treasury HODL is full, participants receive a fixed reward. If the reserves run low, fewer rewards are distributed based on a percentage. This configuration makes the TH technically inexhaustible since after the threshold is reached, all rewards become a % of the remaining TH reserves.

In addition, the reserves in the Treasury HODL are constantly replenished with fees earned by Plenny as well as periodic inflation amounts when the rebase mechanism is triggered.