# Treasury allocation 💰 By [EmbraceDAO](https://paragraph.com/@embracedao) · 2022-02-28 --- Phase I - Prelude treasury structure ------------------------------------ ![Summary of Phase I - Prelude treasury structure](https://storage.googleapis.com/papyrus_images/26a7edde0709f46156789c4e2a273b5b6cbc26acb9a1be0132218926b16f5999.png) Summary of Phase I - Prelude treasury structure Source of funds --------------- At our Phase I - Prelude, our treasury funds primarily only contributed from: 1. Mint sales 2. Royalties ### 1\. Mint sales There will only be 200 mint pricing at 0.07 ETH per mint. In the event that we are sold out, our treasury’s Smart Contract will be holding 14 ETH (excluding secondary market sales). You will be able to view the funds on our `Embrace App`, where works like a dashboard but where you can access the transparency of the funds ![Preview of Embrace App](https://storage.googleapis.com/papyrus_images/990f3ec9ee6a624bac3a986e0df6b359c648be13dc21ac05d346126e7f4bc3a5.png) Preview of Embrace App ### 2\. Royalties During our first phase, In the case of secondary markets trading of first supply Embrace NFTs, we are setting a 10% royalties fees back to the creator (Embrace). From the 10%: ![](https://storage.googleapis.com/papyrus_images/a562cda8675f143574b833bec62daf9f9ff4536d97a9d44a8a505f5c4c69f95c.png) **Example scenario:** Embrace NFT earns a total of 1 ETH from OpenSeas royalties. 0.5 ETH will be transferred to our treasury, whereas the current team that are managing the platform takes the other 0.5 ETH On Embrace App, there will be a section displaying the total royalty earned from OpenSea (before distributed). As for when the re-distribution back to treasury happens, could be decided by the community. ![](https://storage.googleapis.com/papyrus_images/48f52a6c0533f100ce55f74f4efcf6d1b048d1c4cb550259716b189cab3bd01e.png) Allocation of funds ------------------- 1. Post mint ends 2. Earnings distribution This section outlines as detailed as possible on the usage of funds and, phases of distribution. ### 1\. Post mint ends This will be the first time when the treasury distribute out the funds. ![](https://storage.googleapis.com/papyrus_images/82091c565dd0075bd6101537877736d449ec8366a949af45dfdec8ca3c2ef8e8.png) As outlined above, our ideal scenario will be upon mint finishes, after deducting 20% for team and platform cost, > Treasury available balance: **11.8 ETH** These will be used for trading NFTs at the start ### 2\. Earnings distribution At **Phase I - Prelude**, our initial plan is that set a monthly target of 10% of the available funds as earnings to give back our Embrace NFT holders’ wallet. Each NFT holds equal share of 0.5%, Example scenario: ![](https://storage.googleapis.com/papyrus_images/d26484a18ee789ad296aa69a67506b1c6bbb6b293358b2bb6db182ae6c1f10ed.png) Phase II - Interlude treasury allocation ---------------------------------------- However, things may get more interesting when we starts entering Phase II - Interlude, where we create more supplies, inviting more members to join in. > _Here’s where first batch holders gets more benefits._ 1. Royalties 2. Earnings distribution ![Summary of treasury allocation on phase II - Interlude](https://storage.googleapis.com/papyrus_images/3399bd9a2e9b8d653a847b91c6ebb2ffe5c5341498d750cf3ad1864a3162ce9c.png) Summary of treasury allocation on phase II - Interlude ### 1\. Royalties ![](https://storage.googleapis.com/papyrus_images/52ee3e42d623a7469fed3a743a64933019ecb9395c260b9587872c08efb20edb.png) > ### All holders of first 200 NFTs will get a share from the royalties earned through the sales and secondary market of our second supplies of NFT As per mentioned before in our [Roadmap](https://mirror.xyz/0xfFc2A8dE2B62741F55CD97bdABEf8239ca2C60C0/3M-_8yQZOMh-xZOJA9Saxkeo9N0zxJV1Qq_YcjA10v0) article, we expect to earn certain degree of noise in this space, which makes our Embrace NFT has a secondary market value. ### 2\. Earnings distribution When entering **Phase II - Interlude**, where we are inviting more members to join in, first 200 NFT holders will have to dilute a certain share of percentage, to incentivise the secondary supplies owner. Example scenario: ![](https://storage.googleapis.com/papyrus_images/8cc444860f451bb573f4d57aa59ba79a64b082ede686ddef4b32c6a718098377.png) 200 first supply holders will share 6% from earning distribution 1800\* Second supply holders will share 4% from earning distribution _\*Number TBD by the community_ ### ← Previous [https://mirror.xyz/0xfFc2A8dE2B62741F55CD97bdABEf8239ca2C60C0/3M-\_8yQZOMh-xZOJA9Saxkeo9N0zxJV1Qq\_YcjA10v0](https://mirror.xyz/0xfFc2A8dE2B62741F55CD97bdABEf8239ca2C60C0/3M-_8yQZOMh-xZOJA9Saxkeo9N0zxJV1Qq_YcjA10v0) --- *Originally published on [EmbraceDAO](https://paragraph.com/@embracedao/treasury-allocation)*