> For the complete documentation index, see [llms.txt](https://docs.peapods.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.peapods.finance/protocol-revenue/vlpeas-treasury.md). # vlPEAS Treasury 60% of all LVF-related Protocol revenue and is allocated to the vlPEAS Treasury, which is owned and governed by vlPEAS holders. The remaining 40% is directed toward protocol operations, infrastructure costs, and growth initiatives. ### **Treasury Mandates** The vlPEAS Treasury is governed by three core requirements, ensuring consistent capital alignment and protection: | Mandated Allocation | Requirement | | --------------------- | ---------------------------------------------------------------- | | **Buy & Burn $PEAS** | ≥5% of total protocol revenue | | **Buy & Burn vlPEAS** | Up to 55% of revenue (governance-adjustable) | | **Insurance Reserve** | Maintain ≥$200,000 as a reimbursable pool for Metavault bad debt |
If the Insurance Reserve ever falls below $200,000 then a minimum of 10% of all incoming revenue is redirected to refill it until the threshold is restored. Governance may vote to increase these thresholds, but they can never be lowered below $200,000 or 10% respectively. The insurance fund is to be used to mitigate scenarios upon which bad debt is incurred by a Metavault up to the total available balance of the fund, as deemed appropriate by vlPEAS votes and/or the Peapods Finance core team. This structure ensures: * vlPEAS appreciates over time through supply reduction * Treasury capital is used defensively to protect depositors * Governance maintains flexibility while respecting core safeguards *** The vlPEAS governance and Treasury system transforms protocol participation into an aligned, value-generating flywheel through: * **No lockups,** governance weight is live and proportional to vlPEAS held * **Revenue-backed yield**, derived from real usage-based protocol revenue * **Mandatory capital flows** to buybacks, burns, and safety reserves * **Full on-chain control** by vlPEAS holders over Metavaults and vlPEAS Treasury decisions Through this structure, vlPEAS holders become both governors and beneficiaries over various aspects of the Peapods Protocol.