The future of the Treasury

Hi guys,
anyone would help me explaining how the planned Treasury function will roughly work? Since I didn’t get it clearly on the official website. In particular I’m curious to know more about the relationship among its operation, the Ada supply and the transaction fees redistribution inside the Cardano network.

Thanks a lot in advance

For starters:


  1. You send some coins.
  2. You pay ~0.17 ADA to do so (for now)
  3. Slot leader puts your transaction into a block, among with let’s say 1000 total transactions
  4. Slot-leader pays himself a bonus out of nowhere, for example, 500 ADA
  5. Additionally, he adds all the transaction fees to this bonus, so = 500 + (1000 * 0.17) ADA = 670 ADA - this is the total block reward
  6. Now slot-leader gets two addresses - one is predefined (treasury) and one is any address he wants (usually his own)
  7. He sends 75% to himself, and 25% to the treasury
  8. So treasury gets (670 * 25%) = 167.5 ADA, and he gets 502.5 ADA
  9. He sends this block to the network and everyone is like: “ok”
  10. If he sends a block where there’s no 25% going to the specific address - then everyone else is going like :tipping_hand_man: “wtf?” and they just ignore the block
  11. All of this happens every 20 seconds

[Months go by]

  1. Now there’s a lot of coins in the treasury
  2. I’m here like: “I’d like myself some of those dolla bills, yo”
  3. I go to the “Daedalus version 4” or somenthn and open “Send a proposal” tab
  4. I write: “I’m gonna make Cardano great again! So great… you wouldn’t believe. There’s gonna be so much performing. And I’m gonna need… 100’000 ADA for it.”
  5. This proposal goes to the blockchain
  6. Other people open their “Daedalus version 4” or sometnhn and open “Review proposals” tab
  7. They look at my proposal and think: “this guy makes sense” and click “All fricking for!”
  8. Once there’s like a 75% of active stake voted for my proposal - treasury automatically releases 100K ADA onto my address, and I go like “that worked? :upside_down_face:
  9. And then I go and implement stuff… or not.

What a fantastic explanation! Grazie mille! Much appreciated!


So funny example!



omg, this is awesome =) If some other company instead of IOHK will win the nomination in 2020 - Charles should wear this hat around


Awesome explanation…even a guy as thick me got it !!..:sweat_smile:

@vantuz-subhuman :rofl:

@Mikyy I love such questions because it shows real interest in real issues.
I’m just watching this video and can highly recommend it even if it goes over 90 minutes (BTW, Ruslan: the Trumpel is mentioned there too, and Charles believes that with the voting system he has in mind, he wouldn’t have a chance to win the polls)

This video is not a dedicated and clear answer to your treasury redistribution question. You will hear that exactly the voting system is something who will require some more time and will be in focus and available in 2019/2020. But it gives a very good overall insight of how many fields there play together and are related.

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Soooo good.

I’m going to suggest the words ‘automatically releases’ and ‘or not’ point us in the direction of smart contracts and payment upon delivery of milestones for the treasury. Decentralized and ‘Trustless’ were the words that drew me to this space. :slight_smile:

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Thanks :slight_smile: Put in my watch list.

Seems like a great way for the Feds to hide their money.