# On-Chain Treasury

The primary objective of Polimec’s [on-chain treasury](#user-content-fn-1)[^1] for PLMC holders is to ensure the sustainable growth of the network through integration programs and project collaborations, incentivizing network participants, and securing the blockchain infrastructure. For this purpose, Polimec distinguishes between the protocol growth treasury, contribution treasury, and the blockchain operation treasury.

## Protocol Growth Treasury

The protocol growth treasury empowers PLMC holders to fund valuable contributions through governance proposals and grants. It also enables future growth initiatives, such as a single-token model for participations with stablecoins only that allows seamless borrowing of protocol utilities. Furthermore, the allocation supports B2B/B2C integration programs, collaborations with other Web3 projects, additional applications and functionalities, an ambassador program, and community rewards.

## Contribution Treasury

The contribution treasury consists of issuer fees denominated in their contribution tokens on Polimec and will capture future treasury inflows from each successful funding round. This treasury serves to incentivize liquidity providers, evaluators, and long-term token holders. It allocates the issuer’s contribution token fees to the respective stakeholders as defined in [**reward payouts**](/learn/funding-process/reward-payouts.md).

## Blockchain Operation Treasury

The blockchain operation treasury is designated to support collators and ensures infrastructure stability without the need for inflating the total token supply. This treasury receives PLMC inflows from slashed evaluators and transaction fees.

*High-level overview of Polimec’s on-chain treasury:*

<figure><img src="/files/H9wOtnBPEnQxvdYnSa9Z" alt=""><figcaption></figcaption></figure>

[^1]: Smart contract that holds a cryptocurrency project's funds and manages the allocation of those funds through community governance.


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