# Treasury & Reservoir Fund

The Meta Realty DAO will collect and hold funds in various wallets, categorized as Treasury Fund Wallets and Reservoir Fund wallets.

### Treasury Fund

The Treasury Fund is the DAO's main source of spending capital. Funds from the Treasury will be used to purchased CNFT assets based on the Proposal's voted for by the DAO's users.&#x20;

Funds are added to the Treasury in 3 ways:

1. **Initial Minting -** 80% of the minting cost of the CNFTs will go directly to the Treasury Fund Wallet(s).&#x20;
2. **Profits -** Whenever an asset is sold at a profit, the original amount invested as well as a portion of the profits will be returned to the Treasury Fund, with the remaining profit distributed among Meta Realty DAO CNFT holders.&#x20;
3. **Reservoir Fund -** If the Reservoir Fund reaches a pre-determined balance, a portion will be transferred to the Treasury Fund. The pre-determined balance and the amount transferred may be affected via user Proposal.&#x20;

### Reservoir Fund

The Reservoir Fund can be thought of as the DAO's reserve liquidity or "Emergency Fund" so to speak, though under certain circumstances, a portion of these funds may be used for special promotions, giveaways, and other means of rewarding holders of Meta Realty DAO CNFTs.

The Reservoir Fund is solely funded by the Royalties collected from Meta Realty DAO CNFTs sold on secondary marketplaces.
