Work Package #5

Name

WP5 — Revenue Allocation & Treasury Management

High-Level Description

This work package implements the revenue allocation layer — the mechanism by which network surplus (S = I − O) is computed, apportioned between team payouts and the LP surplus share (S_LP = lambda * S), and routed to the appropriate treasury and holding accounts. It covers the on-chain accounting logic, the solvency constraints enforced at the contract level (total payouts cannot exceed available funds), and the treasury management interfaces for hub-network operators. This work package is closely coupled with WP3 (which determines team-level weights) and WP4 (which provides the demand signals that inform inflow totals), and feeds directly into WP6 (certificate redemption).

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Core Objectives

• Implement the surplus computation logic (S = I − O) drawing on demand signal totals from WP4 and team payout records from WP3.
• Implement the LP surplus allocation mechanism (S_LP = lambda * S) with governance-configurable lambda parameter.
• Build the treasury and holding account structures on Cardano for hub-network, hub, and LP surplus pools.
• Enforce the solvency constraint (total payouts ≤ available funds) at the contract level.
• Provide hub-network operators with treasury dashboards for balance visibility, inflow/outflow tracking, and governance parameter management.
• Integrate with WP6 to make LP surplus available for certificate redemption.

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Expected Value — Why does this matter to Cardano?

Revenue allocation is the moment the protocol’s financial promise is made good: surplus generated by real economic activity is transparently apportioned and directed to the correct accounts. Correctly implemented, this layer demonstrates that revenue-linked participation is not theoretical — it is an auditable, automated process. For Cardano, this establishes a model for programmable, multi-party treasury management at hub-network scale, with hard solvency guarantees enforced on-chain.

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Success Metrics

• Surplus computation produces correct results across at least 5 test scenarios with known inputs, including edge cases at the solvency boundary.
• Lambda parameter configurable by governance and correctly applied to LP surplus pool on testnet.
• Treasury accounts for at least one simulated hub-network deployed and operational on testnet.
• Solvency constraint verified to prevent any distribution that would exceed available funds.
• Integration with WP6 confirmed — LP surplus pool accessible for redemption processing.

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Initiative Type

[x] New initiative

Primary Nature of Work

[x] Technical

Milestones

Milestone #1

Milestone #2

Milestone #3

Budget Breakdown — Work Package #5

Supporting Materials

[To be added]