📘 Treasury Cap & Overflow

The safeguard that prevents treasury overaccumulation, centralization risks, and inefficient capital hoarding.

The treasury is essential during early and mid-phase growth — but in a deflationary system, treasury growth must be controlled to prevent excessive accumulation.

Rogue AI solves this through a hard treasury cap and a smart overflow routing engine.

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10.1 Why Treasury Management Matters

The treasury must be:

• Large enough to fund operations

• Stable enough to survive volatility

• Deep enough to cover expansion

• But not so large that it centralizes token supply

An oversized treasury harms:

• Circulating supply

• Governance decentralization

• Token scarcity

• Buyback efficiency

Rogue AI ensures this never happens.

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10.2 Treasury Cap (Tokenomics v2.0)

A strict cap is enforced:

MAX_TREASURY = 10% of total token supply
             = 100,000,000 tokens

The treasury can never hold more than 10% of the supply.

Why 10%?

• Enough to maintain multi-year runway

• Avoid centralization

• Avoid suppressing circulating supply

• Keep tokenomics trust-high and manipulation-resistant

• Maintain long-term economic health

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10.3 What Happens When the Treasury Hits the Cap

When Treasury reaches the cap, it stops accumulating tokens or capital beyond sustainable levels.

Every dollar or token above this limit becomes overflow, triggering the routing system.

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10.4 Treasury Overflow Routing System

Every dollar/token above the treasury cap is automatically redirected.

Overflow Split Logic

50% → Buyback & Lock  
30% → POL Reinforcement  
20% → Treasury Stable Reserve

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What Each Route Does

50% → Buyback & Lock

• Strengthens deflation

• Reduces circulating supply

• Benefits all token holders

30% → POL

• Deepens liquidity

• Supports healthy markets

• Protects against volatility

20% → Treasury Stable Reserve

• Non-token denominated reserves

• USDC, stables, or diversified assets

• Protects against token drawdowns

• Provides emergency runway

This creates a self-balancing treasury system.

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10.5 Treasury Overflow Diagram

         Treasury at 10% Cap?
                 │
                 ▼
      ┌────────────────────────┐
      │ YES → Overflow Active  │
      └──────────┬─────────────┘
                 │
                 ▼
   ┌────────────────────────────────────┐
   │ Overflow Routing:                  │
   │ 50% → Buyback & Lock               │
   │ 30% → POL Reinforcement            │
   │ 20% → Stable Reserve               │
   └────────────────────────────────────┘

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10.6 Why This System Is Essential

✔ Prevents treasury centralization

No single internal wallet becomes too powerful.

✔ Protects circulating supply

Tokens don't get trapped in treasury.

✔ Avoids overfunding

Treasury stays healthy, not bloated.

✔ Reduces sell pressure

No large treasury tokens being moved.

✔ Reinforces buybacks & POL

Overflow always benefits the ecosystem.

✔ Creates stability during volatility

Stable reserves provide long-term runway.

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10.7 Treasury Through Phases

Phase	Treasury %	Notes
Phase 1	20%	Heavy funding needed early
Phase 2	15%	System matures
Phase 3	10%	Highly efficient equilibrium

In Phase 3, the Treasury naturally sits around its cap.

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10.8 Interaction With Other Safeguards

The Treasury Cap works alongside:

Buyback Throttle

Prevents excessive buyback removal.

POL Cap

Prevents overbuilding liquidity.

Circulating Supply Protection

Ensures sustainable deflation.

Together, they form a closed-loop control system that maintains economic equilibrium.

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10.9 Summary

The Treasury Cap & Overflow System ensures Rogue AI maintains:

• Sustainable funding

• Long-term runway

• Non-centralized token distribution

• Strong liquidity

• Strong deflationary pressure

• Self-balancing economic health

The treasury never grows too large. Instead, excess value flows directly back into strengthening the ecosystem.