The Treasury HODL incentivizes Lightning Nodes and manages reserves. Initially, a fixed amount of PL2 is allocated to the TH. These reserves capitalize the Decentralized Oracle Network (DON) as well as the capacity market for rewards.
25% of the original token inventory (i.e. 250M of 1B PL2) are reserved for maintaining operations in the long run.
Token reserves locked in the treasury are used to incentivize participants as follows:
- LORCAs for the validation of payment channel opening and closing receiving Oracle Validation Rewards (OVRs).
- LN Channel Rewards: Standard Lightning Nodes for logging outbound capacity with LORCAs.
- LOC Channel Rewards: Makers for successfully opening a payment channel and licensing inbound capacity to Takers over the capacity market.
- In addition, the Baseline Reward is paid by the Treasury HODL.