> For the complete documentation index, see [llms.txt](https://the-heist-1.gitbook.io/the-heist-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://the-heist-1.gitbook.io/the-heist-docs/how-it-works/the-treasury.md).

# Phase 8 — The Treasury

The Treasury is the protocol's revenue hub. It collects income from a specific, limited set of sources, splits it between stakers and the Floor on a fixed, public ratio, and funds a small, transparent operating budget — with no way for anyone to take more than the rules allow.

## Money in, money out

```mermaid
flowchart TD
    A[Genesis deposit fees - 1%] --> D[Treasury]
    B[Below-target sell tax share - 25%] --> D
    D --> E[Split it]
    E -->|60%| F[Hideout WETH payouts]
    E -->|40%| G[The Floor]
    D -.->|separate, capped stream| H[Operating budget]
```

## Where Treasury money comes from

* **Genesis deposit fees** — half of the 1% fee taken on every Genesis deposit (see [Genesis](/the-heist-docs/how-it-works/genesis.md); the other half goes to the dev directly).
* **A share of the below-target sell tax** — 25% of the extra cost collected on sells while LOOT trades under target; the other 75% goes straight to the Floor (see [Trading & Dynamic Fees](/the-heist-docs/how-it-works/trading-and-dynamic-fees.md)).

The 0.35% base trading fee is **not** Treasury revenue, worth noting — it never passes through the Treasury at all. It builds up naturally as fee growth on [the protocol's own liquidity](/the-heist-docs/how-it-works/protocol-owned-liquidity.md), benefiting the Treasury only indirectly, through whatever share of that liquidity it holds.

## The 60/40 split

Whenever a payout is triggered, the Treasury's WETH balance splits:

* **60%** to the Hideout's WETH payout pool, shared among active stakers.
* **40%** to the Floor, permanently deepening LOOT's backing.

This ratio is fixed and public — it's not something that changes based on anyone's discretion.

## The operating budget

Running a protocol has real, ongoing costs, and The Heist funds that openly rather than through a hidden cut buried somewhere in the fee table. A capped rate is set once, at launch, and streams continuously to the team — capped so it can never be raised past that ceiling, and only ever adjustable *downward* (or to zero) by protocol governance. There's no other way anyone gets paid from this system: **every fee a user ever pays is accounted for on the** [**Trading & Dynamic Fees**](/the-heist-docs/how-it-works/trading-and-dynamic-fees.md) **page**, and this budget only ever draws from revenue the Treasury has already collected — never from user deposits, the Floor, or Hideout rewards.

## Why a fixed ratio instead of letting someone decide each time

A split that could be adjusted on a whim would turn every payout into a decision someone has to be trusted to make well. Fixing it at 60/40 means stakers and the Floor both always know exactly what share of every dollar of revenue is coming their way — no vote required, no discretion to second-guess.

Next: head to [Tokenomics](/the-heist-docs/tokenomics/loot.md) for the complete numbers behind everything described so far, or [Yield Vaults](/the-heist-docs/yield-vaults/overview.md) for the optional automation layer built on top of this core system.


---

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