# Treasury spending

$VDO trades with a 3/3 tax currently, which will gradually be lowered as our treasury grows. 

1% is redirected towards the LP, and the rest of the taxes go towards building our treasury, which will grow our DAO until we're generating sufficient revenue from mainnet validators.

The taxes fund the following:

* **INFRA & OPERATIONS** 🛰️ 
  * Continued operational expenses for compute and networking resources, relayers, etc
* **BUYBACKS** 🐾
  * To incentivize delegations on mainnet validators, we'll frequently buy back tokens
* **RESEARCH AND MARKETING 📣** 
  * We'll be hiring an agency to help produce quality research that will result in articles and twitter threads. This will be a part of how we simp for the chains we want to run on, and already run on.
* **SELF-DELEGATION 🪙**
  * Before gaining mindshare and legitimacy we need to enter some mainnets with our own stake, self-delegated.
* **SLASHING INSURANCE 🔪🩸🌂**
  * As an assurance to delegators and to promote our staking services, we will have funds at hand to reimburse any slashing events, in the highly unlikely case that such an event should occur. Our current target is equivalent to 0.05% of all AUM


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