Learn all about Kusama treasury.

Kusama hosts a treasury, which is a pot of the native KSM token, topped up through transaction fees, slashing, leftovers from Kusama’s token issuance inflation that is not used for block rewards, and deposits which are lost. The goal of the Kusama treasury is to fund the development and growth of the ecosystem.

Suggestions for spending the money owned by the treasury can be put forward by anyone, with a 5% non-refundable deposit for the amount to be spent. Kusama’s council determines if the proposal is to be rejected or approved. Approved proposals are moved into a queue each budget period (24 days).

A lack of spending proposals will result in a burning of KSM funds, causing a slight amount of deflation. This burn amount is currently 0.2% on Kusama.

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