Where your funding comes from

Cardano's Project Catalyst Treasury was made so that people in the community could fund experiments that would improve the technology and ecosystem of Cardano.

"Innovation and collaboration were two of Project Catalyst's founding principles. Through each funding round, Input Output Global, Inc. (IOG) facilitates Catalyst to support those whose projects and ideas can make a positive, real-world impact.

IOG believes in empowering people to explore and develop their ideas. This collaboration leads to cascading innovation and growth and often opens life-changing new opportunities" says Tim Richmond, Marketing and Communications Manager at IOG.

Funding the Treasury

The goal of the Treasury is to give money to help Cardano activities grow through voting. This means that money needs to be sent to the Treasury regularly to make sure that money is always available.

The treasury is funded via the following;

• Transaction fees - fees from every transaction from all blocks produced during every epoch go into a virtual 'pot'. A fixed percentage (ρ) of the remaining ADA reserves is added to that pot.

• Monetary expansion - a certain percentage (τ) of the pot is sent to the treasury, and the rest is used as epoch rewards.

For more information about the Treasury checkout this community created summary: https://clik.vc/cardanotreasury (HT: QADAO)

Allocations from the Treasury

The amount of money each proposer gets depends on several things, like the size of the work outlined in their proposal and how many other proposals are being funded simultaneously.

However, Project Catalyst is designed to be transparent and fair, and the community makes all funding decisions through a democratic voting process.