# 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.
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