Treasury
Where protocol revenue comes from, where it goes and who controls it.
Testnet. No vault capital is deployed to strategies yet. Full DAO governance of the treasury is planned for Q1 2028. See Testnet Status.
Revenue sources
- Performance fees. The primary source. They are 10% to 15% on the six deployed vaults.
- Node operation fees. Fees from third-party node services.
- Management fees. None. Noderr charges 0% management fee on every vault, so no fee is taken on assets under management.
The performance fee is charged on the high-water mark, which is NAV per share above its prior peak. It applies above a per-vault soft hurdle. It is taken only from the vault's trading bucket, never from the principal protected floor. See Fees.
Where revenue goes
| Recipient | Share | Purpose |
|---|---|---|
| Node Operators | 40% | Node reward pool |
| Treasury | 35% | Protocol-owned capital |
| Buybacks | 15% | Planned NODR buybacks, part of which will be burned |
| Development | 10% | Ongoing protocol development |
- Collection. Fees accumulate in the protocol treasury wallet. That is the
feeCollector()address on every vault. - Accounting. TreasuryManager tracks revenue by source.
- Allocation. Funds are distributed according to DAO policy.
- Execution. Distributions are executed through timelocked transactions.
The FeeCollector contract is designed to collect vault performance fees, node operation fees and other protocol revenue streams.
Treasury operating budget
This is how the treasury reserve is spent. It is a separate layer from the revenue distribution above. Do not conflate the two.
| Allocation Category | Target % | Purpose |
|---|---|---|
| Protocol Development | 30-40% | Core protocol development and improvements |
| Security & Audits | 15-20% | Independent audits (first planned for Q2 2027) and bug bounties |
| Node Incentives | 20-30% | Rewards for node operators |
| DAO Operations | 10-15% | Governance and operational expenses |
| Reserve Fund | 15-20% | Emergency reserves and future insurance |
These percentages are planning targets and do not add up to 100%. Each category is sized within its own range as budgets are ratified.
Who controls it
All major treasury decisions require protocol governance approval. Today that is the multisig and timelock. Full DAO control is planned for Q1 2028. See Governance for both, including thresholds and timelocks.
Decisions that need approval:
- Allocation policy changes
- Capital deployment and large allocations (>$100K or >5% of AUM): 66% Oracle supermajority
- Investment and strategy approvals: 66% Oracle supermajority
- Emergency fund usage
Contracts
- TreasuryManager: main treasury management contract.
- FeeCollector: collects fees from protocol operations.
- RewardDistributor: distributes rewards to stakeholders.
- MultiSigTimelock: secures large treasury operations.
Details are in Core Contracts.
Transparency
Treasury operations are onchain and verifiable. Contract addresses are public and every transaction is recorded onchain. Large operations require multiple signatures, and sensitive actions are timelocked.
Reporting covers the current treasury balance, revenue by source, expenditures by category and historical performance.
Strategy
The treasury is managed conservatively.
Capital preservation
- Most funds in stable assets (USDC, DAI, etc.)
- Limited exposure to volatile assets
- Diversification across multiple protocols
- Regular risk assessments
Yield (planned). Treasury assets are planned to earn yield through:
- Low risk DeFi protocols
- Protocol owned liquidity
- Strategic investments
- Conservative trading strategies
Emergency reserves are kept for:
- Security incidents that require user compensation
- Unexpected operational expenses
- Market downturns that affect protocol revenue
- Strategic opportunities that need quick action
Planned
- Real world assets: RWA yield sources.
- Cross chain treasury: treasury management across chains.
- Reporting: more analytics and reporting tools.
- Automated rebalancing: automated treasury optimization.