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Update per 1IP-28 (#193)
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RoundElephant authored Jan 5, 2024
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8 changes: 3 additions & 5 deletions docs/governance/dao-treasury.mdx
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Expand Up @@ -49,13 +49,11 @@ If the result of the Kleros arbitration is to affirm the answer given by the fin
_**Note:** Unless otherwise noted, all 1inch DAO treasuries have the same 12 signers, and 7-of-12 threshold, as the primary treasury on Ethereum mainnet._

## Revenue stream
The 1inch Pathfinder algorithm always provides users the most current and best possible prices on a swap. However, the swap price sometimes moves between the time of the quote and the time that the transaction is mined — resulting in a Swap Surplus.
The 1inch Pathfinder algorithm always provides users the most current and best possible prices on a swap. However, the swap price sometimes moves between the time of the quote and the time that the transaction is mined — resulting in a Swap Surplus. In the past, this Swap Surplus was sent to the 1inch DAO Treasury and served as the DAO's revenue stream.

Funds are collected from the Swap Surplus on all chains. A portion of these funds are paid out to the referral program on the chain the swaps were performed. The majority are sent to the Ethereum mainnet, swapped for USDC, and sent directly to the 1inch Network DAO Treasury.

Governance participants are able to control the revenue split of the [Aggregation Protocol](https://app.1inch.io/#/1/dao/governance/aggregation?action=stake) and [Liquidity protocol](https://app.1inch.io/#/1/dao/governance?action=stake) by voting with Instant Governance.

Note that none of the revenue funds ever go to the 1inch Foundation -- they are 100% controlled by the 1inch DAO.
As of June 2023, with the ratification of [[1IP-28] Discontinue Swap Surplus Collection](https://snapshot.org/#/1inch.eth/proposal/0x62888ad3983a8bdb29e73596b4971a120e6d58ca56929b4a64147a723f6bccc5), Swap Surplus is no longer directed to the 1inch DAO treasury.

### External References

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