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Purpose: To manage a token's treasury by allowing token holders to transfer tokens into the treasury for burning, thereby reducing the token's overall maximum supply, and to redeem tokens from the treasury.

Key Functionality:

Transferring tokens from users to the treasury. Redeeming tokens from the treasury for reserve assets.


Enable users to transfer tokens directly to the treasury. Allow the redemption of reserve assets using treasury tokens based on the selected proportion.

The Treasury within the Unit Network serves as a foundational element, providing transparency and value distribution to token holders through an immutable mechanism. Here's an overview of its key features and functions:

Value Distribution:

The Treasury is designed to distribute value to token holders in a transparent and equitable manner. This distribution occurs through the allocation of reserve assets held within the Treasury.

Reserve Asset Pool:

Assets deposited into the Treasury serve as reserve assets for the associated token. These assets form a pool that backs the token's value, providing a tangible and reliable basis for its valuation.

Token Holder Ownership:

Token holders have proportional ownership of the assets held within the Treasury. This means that the more tokens a user holds, the greater their ownership stake in the reserve assets.

Stability Mechanism:

The Treasury acts as a stabilizing force for the associated token, ensuring a genuine "book value" even in situations where market sentiment or speculative trading may cause fluctuations in the token's value.

Immutable Governance:

The governance structure governing the Treasury is immutable, meaning that its operations and distribution mechanisms are resistant to alteration or manipulation. This fosters trust and confidence among token holders.

Transparency and Accountability:

The Treasury operates with a high degree of transparency, allowing token holders to track the movement of assets and the distribution of value. This transparency enhances accountability and promotes trust within the ecosystem.

The Treasury serves as a cornerstone of the Unit Network, providing stability, transparency, and value distribution to token holders in a manner that is resistant to manipulation and immutable in its operation.


Usage of the Treasury within the Unit Network encompasses several key functions and benefits:

Redeemable Assets:

Assets deposited into the Treasury become redeemable solely by token holders. This allows token holders to access the deposited assets by burning their tokens, providing a mechanism for realizing value from the reserve assets.

Establishing Floor Price:

The Treasury enables users to establish a token's floor price by backing it with deflationary digital assets like Bitcoin. This substantiates the token's value and provides stability, particularly in volatile market conditions.

Transparency and Ownership:

The Treasury operates transparently, ensuring that deposited assets become reserve assets of the enterprise. These assets are proportionally owned by token holders, providing them with a stake in the reserve pool and aligning their interests with the success of the project.

Risk Management:

Monitoring token treasuries is crucial for assessing the health and stability of the ecosystem. The absence of assets in the treasury may indicate speculative token value with uncertain downside risks. Therefore, caution is warranted, and proactive risk management strategies should be implemented to mitigate potential losses.

The Treasury serves as a vital component within the Unit Network, offering transparency, stability, and value realization for token holders while facilitating prudent risk management practices within the ecosystem.


Accepted Assets:

Users are only permitted to send UNIT tokens and reverse assets to the token Treasury. This restriction ensures that only designated assets are deposited into the Treasury, maintaining consistency and integrity within the system.

Locked Funds:

Funds deposited into the Treasury are locked and can only be redeemed by token holders. This means that once assets are deposited, they cannot be withdrawn or accessed by anyone other than the token holders. Even the token creator does not have the authority to withdraw held crypto unless they redeem their tokens.

These conditions ensure that the Treasury operates securely and transparently, safeguarding deposited assets while providing token holders with exclusive access to the reserve funds.

Technical Overview

Treasury Functionality:

Each token within the Unit network is equipped with a treasury, which functions similarly to a holding company. This treasury is responsible for holding other tokens and managing their balances.

The treasury pallet contains the necessary logic and functions to handle interactions with the tokens held within it.

Blockchain Storage:

Balances and transaction details related to the treasury are stored on the blockchain. This ensures transparency and auditability, as all transactions and changes to treasury balances are recorded on the immutable blockchain ledger.

Interactions with Other Pallets:

The treasury pallet interacts with various other pallets within the Unit network ecosystem.

It communicates with pallets responsible for token verification, ensuring that only valid tokens can be deposited into the treasury.

It also interacts with pallets handling token transfer and burning functionalities, enabling token holders to manage their holdings within the treasury efficiently.

Additionally, the treasury pallet may interact with the oracle pallet or other price determination mechanisms to obtain accurate pricing information for the tokens held within the treasury.

Overall, the treasury functionality within the Unit network provides a robust infrastructure for managing token assets, with transparent storage on the blockchain and seamless interactions with other network pallets to facilitate token management operations.

Audit Checks

The audit checks for the redeem operation within the Unit network's Treasury functionality are as follows:

Main Account and Sub-Account Origin:

The origin of the redeem operation must possess both a main account and a sub-account. This ensures that the operation is initiated by a valid user with the appropriate account structure, enhancing security and accountability.

Existence and Non-Identity of Tokens:

It verifies that both the specified treasury token and the requested asset exist within the system.

Additionally, it ensures that the treasury token and the requested asset are not the same token. This prevents self-redemption scenarios and maintains the integrity of the redemption process.

Non-Zero Redeemed Balance:

The redeemed balance, representing the amount of assets being redeemed from the treasury, must not be zero. This check guarantees that only valid redemption requests, involving actual asset transfers, are processed.

By conducting these audit checks, the Treasury functionality ensures compliance, prevents potential errors or misuse, and upholds the integrity of asset redemption operations within the Unit network.


After the validation checks are successfully passed during the redemption process within the Unit network's Treasury functionality, the following calculations are performed:

Total Balance Calculation in USDU:

The total balance of all tokens held in the treasury is calculated in USDU (a stablecoin pegged to the US dollar). This calculation considers token prices obtained from the price feed oracle or liquidity pools.

Determination of Lowest Token Price:

The lowest price of the redeemed token is determined. This is achieved by dividing the treasury's total balance (expressed in USDU) by the total token supply.

Obtaining Price of Requested Token:

The price of the requested token is obtained. This can be sourced from the oracle or liquidity pool, depending on the availability and configuration of the network.

Calculation of Total Redeemable Tokens:

The total amount of tokens the user can receive is calculated. This value is determined by multiplying the lowest token price (derived from the treasury's total balance) by the number of tokens being redeemed by the user.

Calculation of Total Tokens to be Returned:

Finally, the total number of tokens to be returned to the user is calculated. This calculation considers the requested token's price obtained in the previous step and ensures that the user receives the appropriate amount based on the redemption value and token prices.

These calculations ensure transparency and accuracy in the redemption process, providing users with the correct amount of tokens based on the current value of assets held in the treasury and the requested token's price.

Finalize Redemption

After calculating the total redeemed value and the amount to be paid back to the user, the redemption process is finalized as follows:

Transfer of Treasury Tokens:

The specified amount of treasury tokens is transferred from the user's wallet to the treasury. This ensures that the treasury receives the redeemed tokens for burning.

Decrease in Treasury Token Supply:

The supply of the transferred treasury token is decreased. This is because these tokens are effectively burned upon transfer to the treasury, reducing the overall token supply.

Transfer of Requested Tokens to the User:

The calculated amount of the requested token is transferred from the treasury to the user. This transaction decreases the treasury's balance of that particular token while providing the user with the redeemed assets.

Event Emission:

An event is emitted to signal the details of the redemption. This event provides transparency and serves as a record of the completed redemption transaction.

In the Unit network, the treasury pallet interacts with other pallets to accomplish transferring and redeeming. Specifically:

The asset pallet is used for verifying, transferring, and burning tokens.

The pool pallet obtains liquidity pool balances for price calculations.

The oracle pallet determines prices.

The sub-accounts pallet accesses the user's main account.

By leveraging these interactions, the treasury pallet ensures seamless and secure redemption processes within the Unit network, facilitating the transfer of assets between users and the treasury while maintaining transparency and accuracy.

Treasuries of Different Asset Types:

Treasuries of User-Created Tokens & the Unit Treasury:


Each token's treasury, including the Unit treasury, operates independently, devoid of centralized control, even from the token creator. This ensures that the management and operation of each treasury are decentralized and transparent.

Asset Diversity:

Treasuries possess the versatility to hold a wide array of assets, except for their own native tokens. This allows for diversification within treasuries, enabling them to hold various assets that may contribute to their value and stability.

Redemption Mechanism:

Tokens can be redeemed for a quantity of assets held within the treasury. The value of redeemed tokens is determined by the treasury's lowest price, calculated as the total treasury balance in USDU divided by the token's total supply. Upon redemption, users receive the equivalent value in the form of their desired treasury-held asset.

Example Scenario:

Suppose the Unit treasury holds a total balance of $2,500,000,000, with a total supply of 1,000,000,000 Unit tokens, resulting in a lowest token price of $2.50 ($2,500,000,000 / 1,000,000,000).

If Jane redeems 200 Unit tokens, their value would amount to $500 (200 x $2.50).

Jane opts to receive her redemption value in BTCU. Given that 1 Bitcoin is valued at $36,000 during redemption, Jane would receive approximately 0.013889 BTCU.

Token Burning:

Once tokens are redeemed from their respective treasuries, they are permanently burned. This includes Unit tokens redeemed at the Unit treasury, ensuring a reduction in token supply and fostering token value stability. Burning tokens helps maintain scarcity and can contribute to long-term token value appreciation.

Treasuries play a crucial role in the Unit Network ecosystem, providing a mechanism for asset storage, redemption, and value stabilization across different token types while maintaining decentralization and transparency.