Fund
(Treasury Rail on Ethereum)
1.3 Fund
The Fund is a treasury contract deployed on Ethereum that aggregates designated fee flows and distributes value proportionally to share holders.
It operates independently from the Recycle execution layer.
Recycle execution mints accounting weight. The Fund mints shares.
These systems are distinct.
I. Purpose of the Fund
The Fund:
• Receives defined upstream fee flows • Maintains a share ledger • Distributes value pro-rata to share holders • Operates under DAO governance
It does not:
• Guarantee returns • Promise yield • Represent equity in an off-chain entity
It is a governed on-chain treasury.
II. Share Ledger
Shares represent proportional participation in Fund-held value.
Core read function:
This defines voting weight and distribution eligibility.
Shares are:
• On-chain ledger entries • Non-discretionary • Deterministic
Distribution is proportional to:
III. Minting and Distribution
Shares may be minted according to Fund-defined rules.
Distributions occur based on treasury balance and governance actions.
There is no automatic APR.
Distributions are:
• Transparent • Proportional • Event-emitted
IV. Governance Control
The Fund is governed by:
Weighted Governor → Timelock → Fund
Governance responsibilities include:
• Parameter updates • Treasury actions • Distribution decisions • Ownership transfer
Governance state is verifiable through:
Proposal events
Vote logs
Queue events
Execute events
No off-chain override exists.
V. Relationship to Recycle Layer
The Recycle Layer may route defined fee rails into the Fund.
This routing occurs through:
FeeVault (on execution chain)
BridgeAdapter (if cross-chain)
Fund ingress
This is mechanical and verifiable.
The Fund does not influence recycle math.
Recycle execution does not depend on Fund state.
They are modular.
VI. Treasury Integrity
Fund treasury balance can be verified through:
Explorer native balance Contract reads Event logs
Share accounting can be verified through:
and total share supply.
There is no hidden allocation layer.
VII. Governance Weight
Voting power is derived from:
No external token is required.
No off-chain voting weight applies.
VIII. Administrative Control
Control state can be verified via:
If ownership transferred to Timelock:
Private operator authority is removed.
This is verifiable on-chain.
IX. What the Fund Is Not
The Fund is not:
• A yield farm • A staking contract • A profit guarantee mechanism • A venture fund • A revenue-sharing agreement
It is an on-chain governed treasury.
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