Value Accrual

Fees collected by the protocol will flow back to the VMEX treasury. The VMEX treasury will initially be an extension of Volatile Labs, the organization responsible for building the VMEX protocol. As the DAO matures, a treasury team will be built out to manage the funds. The priorities of the initial treasury team will be:

  1. Ensure continued operations and technical support.

  2. Liquidity support for the VMEX token.

There are many costs associated with maintaining a protocol and application: headcount, infrastructure, audits, and legal — to name a few. Volatile labs is in the process of raising money to support these efforts through the launch of the protocol. Once the protocol and governance structures have been established, methods for more systematically driving value back to token holders can be put in place. In the early stages, staking will be the main driver of value accrual, as it will enable depositors to earn more of the VMEX distribution.

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