Treasury

"Empowering Transparency: Unveiling Token Backing and Book Value with Treasury"

Treasury Overview: The Treasury represents a groundbreaking, transparent mechanism for distributing value to token holders in an immutable manner. Assets deposited into the Treasury serve as reserve assets for the associated token, granting token holders proportional ownership of those assets. This ensures a genuine "book value" for the token, even in scenarios where market sentiment towards its speculative trading value may fluctuate.

Usage:

• Transferred digital assets become redeemable solely by token holders, who can opt to burn their tokens to access deposited assets.

• It serves as a means for any user to establish a token's floor price, substantiating its value with deflationary digital assets like Bitcoin.

• The Treasury operates transparently, ensuring that deposited assets become reserve assets of the enterprise, proportionally owned by token holders.

Note: Monitoring token treasuries is crucial. Absence of assets in the treasury suggests speculative token value with uncertain downside risks, necessitating caution.

Conditions:

1. Users can only send UNIT and Reverse Assets to a token Treasury.

2. Treasury funds are locked and solely redeemable by token holders. Even the token creator cannot withdraw held crypto unless by redeeming their tokens.

Technical Overview:

• Each token in the Unit network possesses a treasury capable of holding other tokens, akin to a holding company.

• Treasury balances and transaction details are stored in the blockchain, facilitating transparency and auditability.

• The treasury pallet interacts with various other pallets for token verification, transfer, and burning, as well as price determination.

Checks:

1. The origin of the redeem operation must have a main account and sub-account.

2. The specified treasury token and the requested asset must exist and cannot be the same token.

3. The redeemed balance cannot be zero.

Calculations:

After passing validation checks, several calculations are performed:

1. The total balance of all tokens held in the treasury is calculated in USDU, considering token prices from the price feed oracle or liquidity pools.

2. The lowest price of the redeemed token is determined by dividing the treasury's total balance by the total token supply.

3. The price of the requested token is obtained from the oracle or liquidity pool.

4. The total amount of tokens the user can receive is valued at the lowest price multiplied by the number of tokens being redeemed.

5. The total tokens to be returned to the user are calculated.

Finalize Redemption:

After calculating the total redeemed value and the amount to be paid back to the user:

1. Transfer the specified amount of treasury tokens from the user's wallet to the treasury.

2. Decrease the supply of the transferred treasury token, as these are burned upon transfer to the treasury.

3. Transfer the calculated amount of the requested token from the treasury to the user, decreasing the treasury's balance of that token.

4. Emit an event signaling the details of the redemption.

The treasury pallet interacts with other pallets to accomplish transferring and redeeming:

• The asset pallet is used for verifying, transferring, and burning tokens.

• The pool pallet obtains liquidity pool balances for price calculations.

• The oracle pallet determines prices.

• The sub-accounts pallet accesses the user's main account.

Treasuries of Different Asset Types:

Treasuries of User-Created Tokens & the Unit Treasury:

• Autonomy: Each token's treasury, including the Unit treasury, operates independently, devoid of centralized control, even from the token creator.

• Asset Diversity: Treasuries possess the versatility to hold a wide array of assets, except for their own native tokens.

• Redemption Mechanism: Tokens can be redeemed for a quantity of assets held within the treasury. The value of redeemed tokens is determined by the treasury's lowest price, calculated as the total treasury balance in USDU divided by the token's total supply. Upon redemption, users receive the equivalent value in the form of their desired treasury-held asset.

• Example Scenario: Suppose the Unit treasury holds a total balance of $2,500,000,000, with a total supply of 1,000,000,000 Unit tokens, resulting in a lowest token price of $2.50 ($2,500,000,000 / 1,000,000,000). If Jane redeems 200 Unit tokens, their value would amount to $500 (200 x $2.50). Jane opts to receive her redemption value in BTCU. Given that 1 Bitcoin is valued at $36,000 during redemption, Jane would receive approximately 0.013889 BTCU.

• Token Burning: Once tokens are redeemed from their respective treasuries, they are permanently burned. This includes Unit tokens redeemed at the Unit treasury, ensuring a reduction in token supply and fostering token value stability.

Frequently Asked Questions