> For the complete documentation index, see [llms.txt](https://waodao.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://waodao.gitbook.io/docs/economics/crypto-ecosystem.md). # Crypto ecosystem The WAODAO Treasury concept has evolved. In the first phase, Treasury was described as an ETH-based portfolio that could allocate funds into early-stage projects, liquid crypto assets, NFTs, and community initiatives. That model helped define the early DAO logic, but WAODAO has since moved toward a more practical on-chain liquidity model. Today, the Treasury is primarily focused on supporting the WAO ecosystem through liquidity, market depth, Friendly Pools, grants, and long-term cultural growth. ### Current Treasury logic The current Treasury model is built around several principles: 1. **WAO liquidity comes first.**\ WAO is the liquidity layer of WAODAO. Treasury activity should support deeper WAO markets, healthier trading routes, and stronger on-chain presence. 2. **NFT proceeds support the WAO flywheel.**\ When a WAODAO NFT is sold, net proceeds after marketplace and network fees can be directed toward WAO market buys, liquidity support, or ecosystem development. 3. **Friendly Pools are the main Treasury infrastructure.**\ Instead of acting only as a classic investment portfolio, WAODAO uses Friendly Pools to connect WAO with treasury assets, major crypto assets, community tokens, and partner ecosystems. 4. **Liquidity can create utility.**\ Friendly Pools can generate swap fees when trading activity occurs. These fees are market-dependent and not guaranteed, but they create a practical economic layer around WAO. 5. **Treasury supports aligned growth.**\ WAODAO can use grants, reciprocal pools, and strategic liquidity partnerships to support projects that bring culture, community, utility, or new liquidity routes into the ecosystem. ### Friendly Pools A [**Friendly Pool**](/docs/development/friendly-pools.md) is a token / WAO liquidity pool deployed on a DEX. It connects WAO with another asset and helps create a live market route. Friendly Pools can serve different roles: * **Treasury Liquidity Pools** connect WAO with core assets such as ETH, WBTC, SOL, UNI, or LINK. * **Reciprocal Liquidity Pools** connect WAO with partner or community tokens. **Grant-supported pools** (part of the Reciprocal Liquidity Pools) help aligned Web3 projects launch their own token / WAO route. The goal is to build a growing WAODAO liquidity mesh: a network of pools, assets, communities, and chains connected through WAO. ### Treasury Liquidity Pairing For larger strategic participants, WAODAO may structure individual Treasury Liquidity Pairings. In this model, an investor contributes ETH or another agreed asset and receives WAO under individually discussed terms. Both sides can then deploy matching liquidity positions, creating deeper market alignment between the investor, WAODAO, and the WAO ecosystem. These structures are not public offers. Terms such as asset type, duration, exit mechanics, pool strategy, and risk conditions are discussed individually. ### Grants WAODAO may provide selective WAO grants to aligned Web3 projects that want to deploy a token / WAO Friendly Pool. Grants are designed to help projects: * seed initial liquidity; * connect their community to the WAODAO liquidity mesh; * create a new WAO route; * build long-term alignment with WAODAO. Grant size depends on project quality, community strength, liquidity plan, cultural fit, and long-term collaboration potential. ### Risk note WAODAO is experimental and market-driven. NFT values, WAO token price, DEX liquidity, trading fees, pool returns, and treasury outcomes are not guaranteed. Treasury decisions may change as the ecosystem, markets, and available Web3 infrastructure evolve. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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