The commission pool containing the protocol's revenue
The Protocol Treasury is a dHEDGE Pool where protocol revenue is collected. Protocol revenue is a direct function of Pool performance fees as protocol revenue is currently 10% of newly minted shares for all Performance Fees across the protocol. This means the Protocol Treasury holds shares of top performing pools across the protocol.
Each quarter, the treasury gets rebalanced and a portion of the proceeds are voted on for distribution to DHT stakers (if any).
DHT stakers are responsible for rebalancing the treasury to make sure it:
- Maintains exposure to the best pools on dHEDGE
- Continues to grow
Every quarter, part of Protocol Treasury can be converted to tokens distributed to stakers, similar to a dividend payment. The amount converted and the distributing token may be decided via a vote by vDHT holders. Options have included the distribution of sUSD, DHT, or dTOP tokens as a dividend.