Treasury

ETH is the base currency of the Treasury; dollar calculations will be presented for informational purposes only. Treasury Input is limited to 10 000 ETH, after that limit each NFT will be sold for 1 ETH through the lottery mechanism.

Funds from Treasury can be allocated to other projects taking into account the following formal principles:

• Funds are put into projects at an early stage through SAFT, as well as into new coins, liquid and top coins, NFTs, and community initiatives. No more than 25% of the total funds in the Treasury can be allocated to early-stage projects and NFTs (25% for each category). No more than 15% of the total funds in the Treasury can be spent on community initiatives. The 15% and 25% rules are activated if the Treasury valuation exceeds 10 ETH.

• No more than 15% of the portfolio can be used to purchase a given asset (no more than 5% for early stage assets (not traded on the market) or NFTs). The 15% and 5% rules are activated if the Treasury valuation exceeds 10 ETH.

• Only long positions without leverage are allowed.

• The number of different assets in the Treasury is limited to 35 at a given time. If there are 35 assets in the Treasury, it is necessary to sell one of the previously purchased assets to buy one asset.

• Before buying an asset, the project in question undergoes fundamental scoring, a purchase is made only if the scoring is successful.

• After the first 50 successful auctions any member of the DAO can put forward an investment idea or make a proposal to sell an asset from the portfolio. The community will then decide on that proposal via voting mechanism. After a successful vote, the proposal will be considered by the founders of the DAO.

• Non-custodial wallets are used for storage. It is allowed to temporarily store up to 10% of the current value of the Treasury on centralized platforms.

• Gradual purchase and sale of an asset using limit orders at pre-determined price levels (ladder) is allowed.

• An asset in a portfolio can either be sold at a target price (price-based deal), at a certain date (purchase of an asset for a predetermined period) or purchased for passive holding (the decision to sell is made by a vote of the DAO or the project's founders or when the fund is closed).

Project scoring is carried out according to the principles described in the relevant section.

An asset that has passed the fundamental evaluation of the project already falls into the pool from which the Treasury can be formed in the future. The share of a given project in the Treasury and the time of purchase is determined based on the quantitative characteristics of the asset's price action. We use such tools and statistical indicators as asset correlation, standard deviation, profitability and others. At certain periods, the fundamental background is also taken into account: news on the project, roadmap execution, new partnerships and other factors.

Each month up to 15% of the funds that have been put into the Treasury during the previous month can be allocated to community initiatives.

Treasury will function for 5 years with the possibility of prolongation (at least 80% of the DAO members must vote for prolongation, and at least 50% of the WAO token holders must take part in the vote).