Proposal: Treasury Management Framework

Summary This proposal outlines a framework for treasury management, including profit measurement, performance fees, and a mechanism for staking or buyback & burn. The goal is to establish a transparent and sustainable model that incentivizes treasury growth and protecting long-term protocol value.

Mechanism

The DAO will vote to decide whether the treasury adopts:

Single-side staking or Buyback & burn

1. Staking conditions Users will be able to single stake WM to receive 80% of the profits generated by the treasury, distributed monthly.

2. Buyback Conditions Buybacks will only be executed if the token price falls below backing with the 80% of the fees collected. While the token price remains above backing, funds will remain in the treasury and no buybacks will occur.

Profit Definition Profit is defined strictly as fees collected by the treasury. Increases in the market value of held assets (unrealized capital gains) will not be counted as profit. For example, if WS increases from 0.24 to 0.25 while held in the silo, this is an increase in treasury value but not considered realized profit.

If an assets we purchase is at $1 and treasury sells it at $5, this is considered $4 of realized profit. Meaning, 80% of $4 profit goes to WM stakers/buyback and burn and 20% of the $4 profit goes to treasury managers.

Performance Fee Given the team did not allocate any of Womo Tokens for themselves, treasury managers (team) will receive a 20% performance fee on profits (fees collected). This enables protocol to operate, covers some of the infrastructure costs and incentivizes treasury manages to operate in best interest of holders.

Example: if the treasury collects $10,000 in fees during a month, $2,000 is allocated to treasury managers.

Transparency & Reporting Monthly reports will be published, showing:

• Treasury value at the start and end of the period
• Total fees collected
• Performance fee allocation
• Net growth of the treasury

Rationale This framework ensures:

• Incentives for treasury managers to maximize yield and efficiency
• Protection of treasury capital by limiting buybacks to scenarios where the token is below backing
• Transparent reporting for DAO members
• Clear separation of realized profits versus unrealized gains

Next Steps If approved, this framework will be implemented within few days, with the first monthly report following the end of the next cycle.